How To Compare Loan Estimates (Line by Line)
When you apply for a mortgage, lenders must give you a standard Loan Estimate within three business days (Consumer Financial Protection Bureau rules). Because every lender uses the same three-page form, you can compare offers line by line.
Ask for estimates on the same day
Rates change daily. Request Loan Estimates from two or three lenders on the same day, for the same loan type, amount and term.
Page 1: the big picture
- Loan term, product and type (e.g., 30-year fixed, conventional)
- Interest rate and whether it's locked
- Monthly principal and interest
- Prepayment penalty and balloon payment (ideally both "NO")
- Estimated cash to close
Page 2: where lenders differ
- Section A: Origination charges. This is the lender's own fee, including any points. Compare these closely.
- Section B: Services you cannot shop for (appraisal, credit report)
- Section C: Services you can shop for (title, survey). You can choose your own provider.
- Sections E–H: taxes, prepaids and escrow. These depend mostly on the home, not the lender.
Page 3: comparisons
- APR includes the interest rate and some fees, so it's useful for comparing total cost
- Total Interest Percentage (TIP)
- In 5 Years: total paid and principal paid in the first five years
Points vs. no points
Paying points lowers your rate but costs cash now. Work out how many months it takes to break even, and whether you'll keep the loan that long.
A comparison table
| Lender 1 | Lender 2 | Lender 3 | |
|---|---|---|---|
| Rate | |||
| APR | |||
| Points | |||
| Section A total | |||
| Cash to close | |||
| Lock period |
Then ask the lender you like best whether they can match a better offer.
General information, not financial advice.
The First-Time Home Buyer Binder includes a Loan Estimate comparison page and a lender comparison sheet in the tracker.
First-Time Home Buyer Binder — $17
18-page binder from pre-approval to closing: affordability worksheet, Loan Estimate comparison, showing scorecard, inspection, wire-fraud check and closing day. Instant download: PDF + DOCX + XLSX.
Get the First-Time Home Buyer BinderAll 10 kits — $59More guides
- First-Time Home Buyer Checklist: 10 Steps From Savings to Keys
- How Much House Can I Afford? A Worksheet for First-Time Buyers
- Mortgage Pre-Approval Documents Checklist
- House Hunting Checklist: What To Check at Every Showing
- Home Inspection Checklist for Buyers: What To Ask and Look For
- Closing Disclosure Checklist: What To Check Before Closing
- Real Estate Wire Fraud: How To Protect Your Down Payment
- Final Walkthrough and Closing Day Checklist for Buyers
- First Month as a Homeowner: The New Owner Checklist