Is a mortgage broker better than a bank?

Neither universally. Brokers add choice and advocate on tricky files; banks add simplicity and existing relationships. A strong borrower may get the best deal from either — which is why you collect quotes from both and compare total costs.

How many lenders should I get quotes from?

At least three, on the same day, for the identical scenario. Studies by the CFPB and Freddie Mac consistently find thousands of dollars of savings from shopping — a second quote alone is worth roughly $1,500–$3,000 over the loan's early years in typical analyses, and more quotes help further.

Does shopping hurt my credit score?

Hard inquiries cause a small dip, but scoring models treat all mortgage inquiries within a 14–45 day window as a single inquiry. Do your shopping inside two weeks to be safe on every model.

What is NMLS and why should I check it?

The Nationwide Multistate Licensing System registers every legal mortgage lender and loan officer in the US. A quick search on NMLS Consumer Access confirms your lender is licensed and reveals any regulatory actions — a 60-second legitimacy check.

How to Compare Mortgage Lenders

The difference between the best and worst lender quote is often worth more than the difference between two houses. Here is how the lending business works and how to shop it without getting played.

The four kinds of mortgage providers

Banks — familiar and convenient, especially with existing accounts; sometimes slower and less flexible on unusual files.
Credit unions — member-owned, often lower fees and portfolio options; membership requirements and variable speed.
Mortgage brokers — licensed intermediaries who shop wholesale lenders for you; great for unusual situations (self-employed, credit bruises) and for creating competition. Their compensation (typically 1–2.75% paid by the lender or you) must be disclosed.
Online/direct lenders — fast, tech-driven, often sharp pricing on clean files; service quality varies when a file gets complicated.

How lenders make money (so you know what is negotiable)

From the rate (sold to investors at a premium), origination and processing fees, and servicing rights. Origination charges and rate are the negotiable core; third-party costs (appraisal, title) are pass-throughs. This is why two quotes differ — and why you compare Sections A + B of the Loan Estimate plus the rate, using the comparison calculator to total it up.

The 7 questions to ask every lender

What are your total lender charges (Loan Estimate Sections A and B) for this exact scenario?
Is this rate locked or floating, for how long, and what does an extension cost?
What is the APR, and what fees are in it? (Check it yourself)
Who will service my loan after closing?
What is your average closing time, and what is your on-time record?
Can I get a full underwritten pre-approval, not just a pre-qualification?
What happens if the appraisal comes in low?

Red flags

Refusing to provide a written Loan Estimate, or quoting rates without APR and fees.
Pushing you to skip inspections, overstate income, or 'not worry' about the fine print.
Steering you to affiliated products, or discouraging you from shopping. (Federal law protects your right to shop — multiple mortgage inquiries within a short window count as one for credit scoring.)
'Too good' rates with huge points buried in the quote — always check the points break-even.

Finding local lenders and brokers

For 'near me' shopping: ask your agent and recent buyers for names, check your state regulator's license lookup (every legitimate lender and broker appears in the NMLS Consumer Access database), and interview at least one local lender, one broker and one online lender. Local knowledge matters for appraisals and condo/co-op quirks; national lenders compete hard on price. You want both kinds of quote on the table before you decide — then decide on total cost and closing confidence, using our pre-approval guide to prepare your documents once.