Comparing mortgage quotes can feel confusing because timing, formats, and assumptions rarely match. Here’s a simple way to line them up so the choice is fair—and your lock won’t expire before closing.
What makes a fair comparison
Rates move with the bond market. Comparing quotes from different days—or even different times of day—can distort results. To keep it honest, match the conditions across all lenders:
- Same day and, ideally, same time of day. Markets can shift within hours.
- Same loan amount and property value. Small changes here can change pricing buckets.
- Same credit score scenario. Many rate sheets price in tiers (e.g., 740+, 720–739).
- Same lock period. If you’re closing in about 60 days, use 60-day locks across the board.
- Same loan type. Some programs have higher rates than others!
One more sanity check: a quote that looks cheaper tomorrow may simply reflect better market conditions, not a better lender. Line them up on the same day to see who is truly competitive.
Timing and decision framework
Plan a tight quote window. Ask each lender to price your scenario the same morning or afternoon, then send the details in writing. Confirm the lock length won’t expire before your closing date, and get a simple list of lender-controlled costs.
If you expect to close in roughly 60 days, a 30-day lock is risky. It might price better, but it won’t protect you long enough to get to the finish line without extension costs or a reprice.
Loan Estimates, worksheets, and fees
Official Loan Estimate (LE): This is the standardized federal disclosure you receive within three business days of application. It organizes the numbers the same way for everyone and is the best tool for comparison.
Worksheets, emails, or texts: These are non-binding and easy to tweak. Useful for a quick look, but they’re not the final word.
What to weigh most: the interest rate and the lender-controlled costs (processing and points). Third-party items—title, attorney, taxes, recording—are set by the settlement providers and local norms, not by the lender. Some quotes under-estimate these to look cheaper, which doesn’t help you compare fairly.
If you want a deeper primer before shopping, check the Homebuyers Guide.
Common traps and tradeoffs
Keep your eye on the parts that actually reflect lender pricing, and watch out for these common patterns:
- Shorter lock “wins.” A 30-day lock often prices better than a 60-day lock. That doesn’t help if you need 60 days.
- Lowballing third-party fees. Some quotes under-shoot title, attorney, or taxes to appear lower. Those costs aren’t controlled by the lender.
- Rate vs. points tradeoff. Lower rate usually means more paid upfront in points. The right balance depends on how long you’ll keep the loan.
Local notes for Raleigh, Durham, Charlotte
Attorney and title practices in Raleigh, Durham, and Charlotte can vary slightly, and county taxes differ too. Those shifts affect estimates, but they’re independent of which lender you choose. Keep comparisons anchored on the rate, lender fees (processing + points), and a lock period that safely covers your closing timeline.
Example: Quick Compare
Quick Compare: Same Lock, Same Numbers
Assumptions (illustration, not an offer!): $400,000 purchase, 5% down → $380,000 loan; 740 FICO; conventional; 60-day Closing; Primary Home. Third-party fees (title/attorney/taxes) excluded because they’re not set by the lender.
| Scenario | Rate | Lender Fees (Processing + Points) | Lock Length |
|---|---|---|---|
| Lender A — Fair 60-day quote | 6.625% | $1,395 processing + 0.125 pts ($475) | 60 days |
| Lender B — “Looks cheaper” but 30-day lock | 6.500% | $995 processing + 0.000 pts ($0) | 30 days |
Why this is unfair: the shorter 30-day lock usually prices better than a 60-day lock. If you need ~60 days to close, comparing 30 vs 60 can mislead you.
| Scenario | Rate | Lender Fees (Processing + Points) | Lock Length |
|---|---|---|---|
| Lender A — 60-day | 6.625% | $1,395 processing + 0.125 pts ($475) = $1,870 | 60 days |
| Lender B — repriced to 60-day | 6.625% | $995 processing + 0.125 pts ($475) = $1,470 | 60 days |
*Focus on the lender-controlled costs (processing + points). Don’t weigh third-party estimates heavily—those vary by settlement provider, and some quotes under-shoot them.
FAQ
Why compare quotes on the same day?
Rates can move with the market within hours. Same-day quotes reduce noise so you can see which lender is actually offering the better price.
What should match across all lender quotes?
Loan amount, property value, credit score tier, and lock period. If one of these differs, the comparison is skewed.
Do I need an official Loan Estimate to compare?
Yes for precision. An LE is standardized and binding for disclosure. Worksheets or texts are informal and can omit details.
Which costs matter most when comparing?
Focus on the interest rate and lender-controlled costs (processing + points). Third-party items vary by provider and location.
Is a shorter lock always better?
No. Short locks can price lower but may expire before closing, forcing extensions or a reprice. Choose a lock that comfortably covers your timeline.
Want a plan that matches your timeline?
I’ll work up loan options that fit your goals, needs, and qualifications—so you’re never squeezed into the wrong program. Clear paths. Real numbers. Calm decisions.
Prefer to talk? 984-289-6479 · wolff@michaelthebroker.com · Ready now? Start your application
