How do you compare Loan Estimates from two lenders?
Request both estimates on the same day, for the same loan amount, loan type, and lock period. Then compare the interest rate together with any points, the lender’s own fees in Section A (Origination Charges), and the “In 5 Years” total on page 3, which combines payments and costs over the time most people keep a loan. Ignore lines the lender doesn’t control — like taxes, prepaid interest, and escrow deposits — when judging which offer is better, because they’re estimates that should match regardless of lender.
Shopping for a mortgage is one of the few places in a home purchase where a couple of phone calls can save you real money. The tool that makes it possible is the Loan Estimate — a standardized, three-page form every lender has to use.
Because the form is the same, you can compare offers line by line. Here’s how I walk my buyers through it. For the full buying process, see our guide to buying a home in Pierce County, step by step.
Loan Estimate basics
- A lender must give you a Loan Estimate within three business days after you apply.
- It’s free to get, beyond a possible credit report fee.
- Getting one doesn’t commit you to that lender.
- Estimated closing costs are typically good for 10 business days. The rate isn’t locked unless the form says it is.
Step by step: what to compare
1. Make sure you’re comparing the same loan
Check page 1: loan amount, term, loan type (conventional, FHA, VA), fixed or adjustable, and whether the rate is locked. If one estimate is for a 30-year fixed and another for a 7/6 ARM, they aren’t comparable.
2. Compare the rate and points together
A lower rate often comes with points — upfront fees listed in Section A as a percentage of the loan. One point equals 1% of the loan amount. Compare the rate and the points as a package, and think about how long you’ll keep the loan.
3. Compare Section A: Origination Charges
These are the lender’s own fees — application, underwriting, processing, and points. This is the section that varies most and that the lender controls completely.
4. Check Sections B and C
Section B lists services you can’t shop for, like the appraisal and credit report. Section C lists services you can shop for, like title services. Big differences here are worth asking about.
5. Don’t judge lenders on Sections E through H
Taxes and recording fees, prepaid interest, homeowners insurance, and initial escrow deposits depend on the property and your closing date, not the lender. If one lender’s estimate is much lower here, it may just be using different assumptions.
6. Look at page 3: Comparisons
The “In 5 Years” line shows the total you’ll have paid in principal, interest, mortgage insurance, and loan costs after five years. It’s one of the best single numbers for comparing offers. Also check the APR and the Total Interest Percentage (TIP).
7. Ask about the lock and the timeline
How long is the rate lock, what does an extension cost, and can the lender close on your contract timeline? A slightly better rate doesn’t help if the lender can’t close on time.
What can change before closing
Federal rules limit how much certain costs can increase from your Loan Estimate to your final Closing Disclosure, which you receive at least three business days before closing:
- Lender fees and transfer taxes generally can’t increase unless there’s a valid change in circumstances.
- Recording fees and some third-party services can increase by up to 10% in total.
- Prepaids, insurance, and escrow deposits can change.
Compare your Closing Disclosure to your Loan Estimate and ask about any differences. Here’s what to expect for buyer closing costs in Pierce County, and how a mortgage rate lock works.
Shopping won’t wreck your credit
Multiple mortgage credit inquiries within a short shopping window are generally treated as a single inquiry by credit scoring models. Do your comparison shopping within a couple of weeks.
Frequently Asked Questions
How many Loan Estimates should I get?
Getting at least two or three lets you compare rates and fees meaningfully. Request them on the same day for the same loan amount and type so the comparison is fair.
What is the most important number on a Loan Estimate?
There isn’t just one, but the interest rate with points, the Section A origination charges, and the In 5 Years total on page 3 together give the clearest picture of which offer costs less.
Does getting a Loan Estimate commit me to a lender?
No. A Loan Estimate is not a commitment. You only move forward when you tell the lender you intend to proceed.
Can closing costs go up after the Loan Estimate?
Some can. Lender fees generally can’t increase without a valid change in circumstances, some third-party fees can rise up to 10% in total, and prepaid items and escrow deposits can change.
Will shopping for a mortgage hurt my credit score?
Multiple mortgage inquiries within a short shopping window are generally counted as one inquiry by credit scoring models, so the impact is usually small.
A few calls can save you thousands
The Loan Estimate makes it possible to compare lenders apples to apples. Line them up, focus on what the lender controls, and ask questions about anything that doesn’t match.
If you’re planning a purchase or a move up and want help comparing offers in the context of your timeline, schedule a conversation with The Barnard Group. Relocating to the area? text RELOCATE to 253-677-5765 for a personalized consultation.
About Josh Barnard
Josh Barnard is the founder of The Barnard Group and has spent over 20 years helping families navigate some of life’s biggest moments through real estate. Known for his “Work Hard. Be Kind.” approach, Josh combines expert market knowledge, innovative marketing, and genuine care to help homeowners make confident decisions about their next chapter. Whether someone is buying their first home, moving up, downsizing, or relocating to Pierce County, his mission is simple: serve people well, create unforgettable experiences, and help families build a life they love.
Researched October 26, 2026. Loan terms vary by lender and borrower. This is general information, not financial advice. The Barnard Group does not require the use of any particular lender.
