How to compare Loan Estimates from different lenders

Put the offers on the same footing

Check the loan amount, term, type, and down payment. Confirm when each quote was prepared and whether its rate is locked. Comparing a different loan term or different upfront payment can hide the reason one offer looks cheaper.

Compare the rate with the upfront tradeoff

Read the interest rate alongside points, origination charges, and lender credits. Paying more upfront may accompany a lower rate; accepting a higher rate may accompany a credit. Consider how long you expect to keep the loan when evaluating that tradeoff.

Separate lender pricing from other estimates

A lender that estimates lower property taxes or insurance has not necessarily offered better loan pricing. Compare those assumptions, as well as third-party services, so the payment comparison does not depend on inconsistent inputs.

• Compare principal and interest separately from escrow.
• Read the lender charges and credits together.
• Review both closing costs and cash to close.
• Check the comparison information on the final page of each estimate.

Ask each lender the same questions

Ask what assumptions would change the offer, which charges you can shop for, and whether the lender can meet your closing timeline. Keep written answers with the estimate they describe. Your confidence in the lender’s explanation and ability to close also matters.

Keep shopping and closing comparisons distinct

Lighthouse can help organize document facts and explain differences. Keep each lender’s estimate identifiable. After choosing a lender, compare that lender’s applicable estimate with the Closing Disclosure for the same property. A different lender’s offer remains shopping evidence, not the final-document baseline.