Mortgage Shopping
Mortgage Shopping Checklist - The 8 Steps That Save Money
Most shopping advice is generic. This checklist is built around the wholesale market mechanics and the federal Loan Estimate framework - what actually moves your final cost.
The 8 Steps
1. Check your FICO before quoting
Pull your credit through Credit Karma, your bank, or annualcreditreport.com. Knowing your FICO bracket lets you compare quotes on equal footing and spot lenders quoting against a profile you do not match.
2. Set your loan amount and lock period
Without these two variables locked, lenders can manipulate the quote. Decide your target purchase price and a realistic lock period (typically 30-45 days from accepted offer).
3. Pull live wholesale rates as a baseline
Use Rate Direct or a similar live-pricing tool to see the actual market for your scenario. Without a baseline, you cannot tell if a retail quote is high.
4. Get 3-5 Loan Estimates the same day
CFPB research: shoppers who get 3+ LEs save ~$1,500 over the life of the loan. 5+ saves several thousand. Cluster all LEs the same day so rates are comparable.
5. Compare Page 2 Section A (origination charges) only
Origination charges are the only fully lender-controlled fees. Title, taxes, prepaids vary by location and not by lender. Compare Section A directly.
6. Watch the lock period
A 15-day lock prices better than a 60-day lock by 0.125-0.50 in rebate. Make sure every quote uses the same lock window.
7. Verify rate + lender fees + MI combination
Lender games include shifting between rate and fees. Lock the THREE-variable comparison: rate, lender fees, and mortgage insurance. The $2,000 Best Price Guarantee uses this same triple.
8. Pre-approve before house hunting
Sellers in 2026 markets require pre-approval letters with offers. Same-day pre-approval gives you offer leverage. Apply early in the process.
Step 3 in action - live baseline
The pricer below returns live wholesale rates for your scenario. Use it as your shopping baseline, then collect LEs from 3-5 lenders.
Conventional Loan Facts
- Down payment as low as 3% for first-time homebuyers, 5% for others
- Down payment assistance programs available to fully cover the 3% down payment
- Private Mortgage Insurance (PMI) required below 80% LTV - automatically removed at 78%
- Maximum DTI typically 45%, up to 50% with strong compensating factors
- Minimum credit score generally 620; best rates at 740+
- Available for primary residence, second home, or investment property
- No upfront mortgage insurance premium - only monthly PMI if applicable
Frequently Asked Questions
How many lenders should I get a quote from?+
At least 3 Loan Estimates, ideally 5. CFPB research shows borrowers who shop 3 lenders save ~$1,500; those who shop 5 save several thousand. Time-cluster them the same day so the market is identical.
When in the home-buying process should I start shopping?+
Pre-approval before house hunting. Loan Estimates after accepted offer. Most lenders will give you a written quote for shopping purposes before formal application; LEs come after.
Should I worry about credit pulls hurting my score?+
Multiple mortgage inquiries within 14-45 days count as a single inquiry for FICO scoring purposes. Shop confidently - the system was designed for this.
What if a lender pressures me to lock immediately?+
Walk away. Aggressive lock pressure is a sign the lender is afraid of comparison. Rate Direct does not require a lock to provide pricing - the pricer above is anonymous.
Should I use a mortgage broker or shop banks directly?+
A wholesale broker shops hundreds of lenders for you in one application. Skipping the broker and shopping retail banks individually generally gets you higher pricing because retail banks operate at the retail pricing tier.
Is my rate competitive?
Get pre-approved
LE explained