How do I compare mortgage offers when I am shopping for a loan?

Shopping among lenders and brokers helps you see differences in price and terms. The CFPB suggests starting with a broad search of rates in your area, then contacting banks, credit unions, and other lenders or brokers. Ask each one for the interest rate; the usual fees; the APR, which includes the interest rate plus points, broker fees, and certain other charges; and whether each product is fixed or adjustable and what points or credits go with each rate. If you pay points, confirm that the rate actually falls.

Request Loan Estimates from at least three lenders and compare the same standard form. Check the loan term, cash needed to close, whether the payment pays down principal, what else is added to the monthly payment, whether you can repay early without penalty, and whether the written offer matches what you were told. Compare the documents; do not rely on a headline rate alone.