Follow these checks as you work
Normalize the offers first
An apparent bargain may use a shorter lock, more points or a different loan type. Ask each lender to quote the same scenario and obtain formal Loan Estimates when eligible. Compare documents issued close together because market pricing changes.
Normalize the request before comparing the documents. Use the same purchase price, loan amount, term, loan type, occupancy, down payment, points and lock period. A mismatch in one field can create a false winner.
Read the pages in order
Page one establishes rate, payment and cash to close. Page two itemizes loan costs and other costs. Page three shows APR, total interest percentage and a five-year comparison. Focus first on lender-controlled origination charges and credits; prepaid taxes are not a discount from the lender.
Mark lender-controlled charges separately from taxes, insurance, prepaid interest and other estimates. This keeps a lower cash-to-close figure from looking like a lender discount when it actually reflects a different escrow or timing assumption.
Choose for your situation
A low-cost loan may suit a short holding period while a higher-cost, lower-rate loan may win over a decade. Calculate both at your expected payoff month. Keep a cash buffer after closing and confirm whether the rate is locked.
Use the five-year figures as a standardized reference, then run the expected holding period yourself. Confirm lock status and leave enough cash after closing for repairs and ordinary ownership costs.
A page-by-page decision map
Each part of the Loan Estimate answers a different question; no single box selects the winner.
| Situation | What to do next |
|---|---|
| Page 1 | Compare loan terms, projected payment and cash to close. |
| Page 2 | Separate lender charges from prepaid and third-party costs. |
| Page 3 | Review APR, five-year cost and other comparison disclosures. |
Your working plan from start to finish
Get estimates for the same loan amount, term, lock period and points.
Page 1: Compare loan terms, projected payment and cash to close.
Rates can move between quote dates. Ask lenders for the same scenario and review whether each offer is locked or floating.
Primary sources
- CFPB: Loan Estimate explainerOfficial reference ↗
- CFPB: Compare loan offersOfficial reference ↗
Answers to check before you act
Which Loan Estimate fees are easiest to compare?
Start with lender-controlled origination charges, points and credits, then review services you can shop for.
Is cash to close the same as loan cost?
No. Cash to close also reflects down payment, deposits, prepaid items and adjustments that are not all lender fees.