Two mortgage quotes can look similar until you examine the details. When buying an Atlanta home, use the standardized Loan Estimate to compare offers for the same type of loan and property.
Make the comparison fair
Give each lender the same purchase price, down payment, property address, and requested loan type. Rates can change daily, so note when each offer was prepared and whether its rate is locked. Ask questions if one estimate assumes discount points or a different mortgage insurance structure.
Read more than the headline rate
Compare the interest rate, annual percentage rate, monthly principal and interest, estimated taxes and insurance, any mortgage insurance, origination charges, lender credits, and cash to close. Review the “In 5 Years” comparison on page three as one additional way to understand the cost of competing offers. Some taxes and third-party costs are not controlled by the lender, so focus on what is actually different.
Ask what can change
The initial estimate is not your final closing statement. Find out which charges are estimates, which services you may shop for, and whether the proposed rate is locked. Before closing, compare the Closing Disclosure with the Loan Estimate and ask about unexpected changes.
A responsive loan officer should be able to explain the numbers plainly. If you have an Atlanta purchase contract or competing estimates, contact me for a discussion of your financing options and questions to ask.
Sources: CFPB: Compare and negotiate loan offers; CFPB: Loan Estimate explainer; CFPB: Closing Disclosure explainer.