Lender Shopping Guide

Compare with confidence. Choose with clarity. The right lender can save you $50,000+ over the life of your loan.

Phase 2: Foundation Stage 2.2: Pre-Approval Process

What You'll Learn

You've done the hard work: improved your credit, saved for a down payment, and learned about mortgage types. Now it's time to shop for the lender who will actually give you the best deal.

Compare lenders apples-to-apples using our interactive calculator
Ask the right questions that expose hidden fees and costs
Spot red flags and avoid predatory lenders
Understand rate vs. fees trade-offs and break-even points
Connect with verified DFW lenders who have your back
Negotiate like a pro to get the best possible deal

The Truth Nobody Tells You

Shopping for a lender is like shopping for a car: the first offer is never the best offer.

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Most people accept the first rate they're quoted

But here's what lenders don't want you to know: rates and fees are negotiable. The difference between shopping 3 lenders vs. 1? An average of $300-500/month and $50,000-100,000 over the life of your loan. That's a family vacation every year for 30 years, your kid's college fund, or retirement security.

Interactive Lender Comparison Calculator

Compare Your Offers

Enter offers from 3 different lenders to see the real cost comparison. Don't have 3 offers yet? Use our verified network below.

Lender 1

Lender 2

Your Comparison Results

Based on a $300,000 loan amount over 30 years

Total Upfront Fees
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Monthly Payment
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Total Interest (30 years)
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Total Cost (Fees + Interest)
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Compare your offers to see which lender saves you the most money.

The Questions That Expose the Truth

Ask every lender these questions. Their answers will tell you everything you need to know.

About the Rate

What's the interest rate, and is it locked or subject to change?
Why: Unlocked rates can increase before closing. Get it in writing.
Is this your best rate, or can you match/beat a competitor's offer?
Why: Rates are negotiable. Never accept the first offer.
How long is the rate lock period, and what happens if we don't close in time?
Why: Some lenders charge fees to extend locks. Know the timeline.
Would paying points lower my rate? By how much?
Why: Points can make sense if you're staying long-term. Do the math.

About Fees (This Is Where They Hide Costs)

What are ALL of your lender fees? List every single one.
Why: Some lenders hide fees in "processing" or "administrative" charges.
Are any of these fees negotiable or able to be waived?
Why: Many fees are negotiable, especially for strong borrowers.
Do you charge a prepayment penalty if I pay off the loan early?
Why: Prepayment penalties can cost thousands. Avoid them.
What third-party fees should I expect (appraisal, title, etc.)?
Why: Lenders can mark up third-party fees. Get estimates.

About the Process

What's your average time to close?
Why: Slow closings can cost you the house. Speed matters.
Who will I be working with throughout the process?
Why: Getting passed around is frustrating. Know your point person.
Do you sell your loans to other servicers after closing?
Why: Your payment address might change. Be prepared.
What documents will I need, and can you provide a checklist?
Why: Missing documents delay closing. Get ahead of it.

About Your Options

Based on my situation, what mortgage type do you recommend and why?
Why: Good lenders educate. Bad lenders push products.
Am I eligible for any special programs (first-time buyer, VA, USDA, etc.)?
Why: Special programs can save you thousands. Ask about every option.
If rates drop before closing, can I re-lock at the lower rate?
Why: Some lenders offer "float-down" options. It's worth asking.

Red Flags: Run Away Fast

These warning signs mean the lender doesn't have your best interests at heart. Trust your gut.

🚨 Pressure Tactics

"This rate is only good if you apply TODAY." Real professionals don't use manufactured urgency. Take your time.

🚨 Vague About Fees

"We'll figure out the exact fees later." No. Get everything in writing upfront. No surprises at closing.

🚨 Won't Put It in Writing

"Just trust me, we'll take care of you." If they won't document promises, those promises don't exist.

🚨 Terrible Communication

Takes days to respond, never returns calls. If they're bad now, imagine when problems arise.

🚨 Pushes Products You Don't Need

"You should definitely get this ARM/interest-only loan." If it feels wrong, it probably is.

🚨 Can't Explain Terms Clearly

Uses jargon without explaining. Good lenders educate, they don't confuse.

🚨 Asks You to Lie

"Let's round up your income" or "Don't mention that debt." Mortgage fraud is a federal crime. Walk away.

🚨 No Online Reviews or All Bad Reviews

Everyone has a digital footprint. No reviews = brand new or hiding something. All terrible reviews = run.

🚨 Upfront Payment Required

"Pay this fee and we'll guarantee approval." Legitimate lenders don't charge before approval.

Rate vs. Fees: The Trade-Off You Need to Understand

Lower rate doesn't always mean better deal. Here's why.

Low Rate, High Fees

Scenario A

• $300,000 loan
• 6.25% interest rate
• $6,000 in fees
Monthly Payment: $1,847
Total Cost Year 1: $28,164

Best for: People staying in the home 7+ years. You'll recoup the higher fees through lower monthly payments.

Higher Rate, Low Fees

Scenario B

• $300,000 loan
• 6.75% interest rate
• $2,000 in fees
Monthly Payment: $1,946
Total Cost Year 1: $25,352

Best for: People moving in 3-5 years or refinancing soon. Lower upfront costs, easier to recoup.

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The Break-Even Point

In the example above, Scenario A costs $4,000 more upfront but saves $99/month. Break-even: $4,000 ÷ $99 = 40 months (3.3 years). If you're staying longer than 3.3 years, Scenario A wins. If not, Scenario B is better.

Skip the Shopping. We Did It For You.

Our verified lender network has been pre-screened for competitive rates, transparent fees, and exceptional service. These aren't just random referrals—they're professionals we trust with our own family.

✓ Pre-Negotiated Rates

Competitive pricing guaranteed

✓ No Hidden Fees

Complete transparency from day one

✓ Fast Closings

Average 21 days, not 45

✓ DFW Expertise

Local market specialists

✓ Bilingual Support

English & Spanish services

✓ Education First

They explain, not confuse

Connect with a Verified Local Expert

No obligation. No pressure. Just real professionals who have your back.

Key Takeaways

  • Never accept the first rate you're quoted—rates and fees are negotiable
  • Shopping 3 lenders can save you $50,000-100,000 over 30 years
  • Ask about ALL fees upfront and get everything in writing
  • Understand the rate vs. fees trade-off and calculate your break-even point
  • Watch for red flags like pressure tactics, vague fees, and poor communication
  • Our verified network offers pre-negotiated rates and transparent pricing

What's Next?

Continue your journey with these related resources

Connect with a Verified Local Expert