If you’re shopping for a mortgage, you’ve probably called multiple lenders looking for the best rate. I get it. When you’re borrowing hundreds of thousands of dollars, even a small difference in your interest rate matters.
But here’s what most people don’t realize: you might be comparing rates all wrong.
Let me pull back the curtain and show you what actually matters when you’re rate shopping.
Nobody Can Promise You the Lowest Rate
First things first – if someone promises you the lowest rate, they’re lying. Nobody can guarantee that. Not me, not the big banks, not your neighbor’s cousin who “knows a guy.”
What you should look for instead is a good quality lender who will take care of you. When you find that, you’ll likely end up with a competitive rate and fair closing costs. That’s the goal.
Why Timing Changes Everything
Here’s where most people mess up their rate shopping.
Let’s say you’re refinancing (this applies to buying too, but refinancing isn’t as time-sensitive). You talk to Lender A on Wednesday. Then you get busy with life. You call Lender B the following Tuesday. Then you finally reach out to Lender C on Friday.
Now you’ve got three quotes in front of you, and you’re ready to compare. But here’s the problem: you’re not actually comparing apples to apples.
A lot of time has passed since that first lender gave you their quote. The financial markets don’t sit still. They move every single day. So when Lender C looks cheaper than Lender A, it might not be because they’re better – it might just be because rates dropped that week.
The fix: Get all your quotes in a short window of time. Same day if possible. Same week at minimum. That’s the only way to truly compare who’s offering you the better deal.
Watch me explain this in detail here: Stop Chasing Low Rates – Here’s What Actually Matters!
What Lenders Actually Control (Hint: Less Than You Think)
When you get a loan estimate, you see a bunch of fees. It’s easy to assume the lender controls all of them. They don’t.
Lenders typically control less than half of your total costs (often around 30% or less, depending on your loan). That includes:
- Their underwriting and processing fees
- The cost of your appraisal
- The cost of your credit report
- The rate itself (and what it costs to buy down that rate)
What they don’t control:
- Your escrow account setup
- Title company fees
- Attorney fees (in some states)
Your lender should know what these other costs will be. They should give you accurate estimates. But they can’t change them. Whether you’re working with a retail bank, a mortgage bank, or a mortgage broker, these third-party costs stay pretty much the same.
Different lender types have different advantages depending on what you need. They can all be great options. It just depends on your situation.
Hidden Costs to Watch
Some lenders look cheaper on paper but aren’t when you dig deeper. That’s why I made a separate video breaking down the loan estimate line by line. If you want to really understand what you’re paying for, check that out.
The key is looking at what the lender actually controls versus what they’re just passing through to you.
Who You Should Really Trust
If you’re comparing three lenders and the rates and fees are similar, go with the person you trust most.
Why? Because the relationship matters more than you think.
A good lender will tell you when refinancing doesn’t make sense right now. They’ll save you from making a bad decision. They’ll answer your questions after closing. They’ll be there when you need them.
A bad lender? They disappear after the deal closes. I call it “the sales call.” They get your business, then you never hear from them again. When you have questions six months later, they ghost you.
There are takers out there. Don’t work with them.
Where Mortgage Rates Are Heading
Wondering if you should buy now or wait for rates to drop? We’ve covered that here: Should I Buy a House Now or Wait for Rates to Drop?
And if you’re curious about where rates might go next year, check this out: 3 Ways Mortgage Rates Could Go in 2026
Final Advice
Stop shopping yourself in circles. It’ll just give you a headache.
Find a lender you trust. Get your quotes in a tight timeframe. Look at what they actually control on the loan estimate. And pick the person who will still answer your calls after you close.
That’s how you get the right financing for your house.
Have questions or want to challenge my thinking? I’m all for it. We’re here to give you authentic, transparent advice about building wealth through real estate.
Ready to work with a lender you can trust?
Call us at 303.779.0591 or schedule an appointment online.
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