Quick Answer
My strategy for picking a lender is to get Loan Estimates from 3 to 5 lenders within the same week so you compare rates, fees, and terms on the same market conditions, then lock the best one. Shopping within a focused window keeps the extra credit inquiries from hurting your score. A good lender saves you thousands, so this is worth the hour it takes. Ask Patrick how choosing a mortgage lender would apply to your situation.
The money problem: the lender you pick decides your rate, your fees, and whether the deal closes on time, and most buyers spend more time choosing a toaster. The strategy is simple: shop hard, compare everything, and pick the best total value, not just the lowest rate.
The best strategy is to get Loan Estimates from 3 to 5 different lenders within the same week, so you compare rates, fees, and terms on the same market conditions, then lock the best one.
Beyond the rate, evaluate the APR, total closing costs, lender fees, service quality, and communication. The cheapest lender is not the best choice if they cannot close the deal. Here is the full playbook.
Shopping Strategy
Apply to 3 to 5 lenders on the same day or within the same week. The credit bureaus treat multiple mortgage inquiries within a 14 to 45 day window as a single inquiry, so your credit score is not penalized for shopping. Compare online lenders, local banks, credit unions, and mortgage brokers to get the complete picture.
The meaning: the system is built for shopping, and the inquiry window protects your score while you do it.
The money consequence: a 0.25% rate difference can save thousands over the life of the loan, so the hour of shopping pays for itself many times over.
The real-world play: same-week quotes mean the same market conditions, which is the only fair comparison.
What to Compare
Compare the interest rate, APR, origination fees, discount points, third-party fees, total closing costs, monthly payment, and cash to close. The APR includes both the interest rate and certain fees, giving a more complete cost comparison, but the APR calculation can vary between lenders, so compare the detailed fee breakdown too.
The meaning: the rate is one number in a stack of numbers, and the stack is the real comparison.
The money consequence: a low rate with heavy fees can cost more than a slightly higher rate with none, so the total is the truth.
The real-world play: put every quote on one sheet, line by line, because side-by-side is the only way the differences show.
APR vs Interest Rate
The interest rate is the cost of borrowing the principal. The APR includes the interest rate plus certain fees like origination charges and points. When comparing lenders, the APR gives a more complete picture of total cost, but pay attention to the underlying fees that make up the APR difference.
The meaning: the APR is the rate with the fees folded in, which is why it is the better single comparison number.
The money consequence: two lenders can quote the same rate with different APRs, and the difference is fees coming out of your pocket.
The real-world play: use the APR to spot the gap, then open the fee breakdown to see exactly where the gap lives.
Service and Communication
Call each lender and see how responsive they are. Ask about their typical process and whether you will have a dedicated loan officer or processor on your file. A lender who communicates well prevents delays and reduces stress, and the communication is a real part of the product.
The meaning: the mortgage is a relationship for 30 years, and the relationship starts with the first phone call.
The money consequence: a lender who answers questions can save the deal, while one who ghosts you can cost it.
The real-world play: test the responsiveness before you commit, because the behavior you see in the shopping phase is the behavior you get in the closing phase.
Timeline Expectations
Ask each lender for their typical closing timeline, because lenders differ. If you have a tight closing date, choose a lender with a proven track record of on-time closings. Online lenders can have longer timelines because they are less familiar with local title and appraisal requirements.
The meaning: the closing date is a contract promise, and the lender's process decides whether you meet it.
The money consequence: a missed closing date can cost you the rate lock, the contract, or the home, so the timeline is money.
The real-world play: ask for the typical timeline in writing and factor it into the choice, especially when the calendar is tight.
Making Your Final Decision
Create a simple spreadsheet comparing each lender's rate, APR, total closing costs, monthly payment, and estimated timeline. Weight the factors based on what matters most to you. If the costs are similar, go with the lender who communicated best and has the experience to handle your situation.
The meaning: the decision is a weighted average of numbers and feel, and the spreadsheet keeps the numbers honest.
The money consequence: the lowest total cost wins when the deals differ, and the best communicator wins when they tie.
The real-world play: I encourage every client to shop lenders, even though I originate loans myself, because the comparison is how you know you got a fair deal. Make it a great one.
Ask Patrick about choosing a mortgage lender
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