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Comparing Mortgages

Landed | 26 Jun 2019

How do I compare different mortgage products?

Congrats on taking the next steps in your homebuying journey! Deciding which lender to go with is a challenging yet important decision. Here are some things to consider to help you make a decision.

We’re often asked if it makes sense to shop around for mortgages with different lenders. Every lender is slightly different in the way they include or don’t include various costs or fees – this means that there will be some variance in what each lender offers you.

Before you decide to shop around, you should know that each lender will pull your credit history and this may hit your credit score – it is helpful to ask your loan officer when in the process they do this. If your credit is pulled by different mortgage lenders over the course of a shorter period of time, it has a smaller impact on your credit score. Many lenders are willing to have a preliminary conversation before you complete a full application.

If you do shop around, here are three things you should consider as you compare your mortgage pre-approvals from separate lenders:

1. Information You Report

In addition to the financial information included in your application, a lender wants to know what your ideal price point is. Ask your lender when they give you your pre-qualification or pre-approval if the purchase price is based on your goal or reflective of the maximum loan amount. This information influences your loan amount.

2. When You Submit Your Application

Interest rates fluctuate on a day-to-day basis because the market shifts daily. The timing of your application may impact the interest rate that a lender is estimating for your loan amount. If you’re given one rate at one lender a few weeks from the time you’re given another rate, you can ask the lender with higher rates if they will rate-match.

3. The Specifics of Your Selected Mortgage Product

Your interest rate and the loan amount will look different depending on the type of mortgage product you are considering. This will include the type of mortgage (fixed versus variable rate), the time period of the mortgage, and more. Talk to your lender about their various products and how each will impact your pre-approval.

You can use our cheat sheet to compare mortgage products!


Mortgage Comparison Worksheet (new)

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About the Author


Former educators on the Landed team created these materials to help you on your homebuying journey. Landed supports educators on the path to homeownership by providing a personalized team that includes a partner agent and a Landed homebuying expert. We help families navigate all of their options for buying a home, including our own shared equity down payment program. Our team provides free homebuying education and guidance as well as competitive offer reviews for educators. Landed works with K-12, college, and university employees in expensive metro areas like San Francisco, Seattle, Portland, Denver, Los Angeles, San Diego, and Hawaiʻi. To learn more visit landed.com.

Looking for Landed's down payment program? Due to a temporary unavailability of DPP investment funds, all Landed metro areas are being put on a DPP waitlist effective September 8, 2022. You can read all the details (including FAQs) here if you would like to know more.