What we verified in “How to choose a mortgage lender: compare, verify, ask”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. The CFPB recommends contacting several different lenders, because borrowers who shop around can save thousands of dollars and different lenders can offer different kinds of loans; it says recommendations might come from friends, relatives or real estate agents, but you should also seek out lenders on your own, such as your local bank or credit union and other lenders that serve your area; that a housing counselor can help you identify lenders; and it recommends contacting at least three lenders on your list.

   Sources 1 · Contact multiple lenders (page last modified July 14, 2025): 'Contact several different lenders'; 'Borrowers who shop around can save thousands of dollars'; 'Different lenders can also offer different kinds of loans'; 'Recommendations on lenders might come from friends, relatives, or real estate agents'; 'you should also seek out different lenders on your own'; 'contact your local bank or credit union and other lenders that serve your area'; 'A housing counselor can also be a good resource to help you figure out how to identify lenders'; 'Contact at least three lenders on your list' · Checked October 17, 2026

2. The CFPB suggests calling each lender to set up an appointment with a loan officer and, at the appointment, sharing the basic facts about your situation and the kind of loan you are considering; asking whether your plan makes sense and, if they recommend something different, why; asking them to show you the interest rate, APR, estimated fees and monthly payments for a couple of loan options; and asking them to look at your documents to see whether there are reasons you might not qualify.

   Sources 1 · Contact multiple lenders, 'Contact at least three lenders on your list': 'Call each lender to set up an appointment to meet with a loan officer'; 'Share the basic facts about your situation and the kind(s) of loan you are considering'; 'Ask the loan officer whether your plan makes sense to them'; 'If they recommend something different, ask why'; 'Ask the loan officer to show you the interest rate, APR, estimated fees, and monthly payments for a couple different loan options'; 'help you understand whether there are reasons you might not qualify for the loan options you have discussed' · Checked October 17, 2026

3. According to the CFPB, you should not decide on a lender while exploring, but explore options with different lenders before you find a house, because once a seller accepts your offer you may have as little as a couple of days to line up financing; lenders have very specific guidelines about how they count and document your income, assets and the source of your down payment funds; these conversations are most useful if you bring documentation; and if your application might be complicated, for example if you are self-employed, it is best to find out sooner rather than later.

   Sources 1 · Contact multiple lenders, 'Keep your options open' and 'What to know': 'Don't decide on a lender at this stage'; 'explore your options with different lenders before you find a house'; 'you may have as little as a couple days to line up financing'; 'You'll get the most value out of these conversations if you bring documentation with you'; 'Lenders have very specific guidelines about how they count and document your income, assets, and the source of your down payment funds'; 'if you are self-employed'; 'it's best to find out sooner rather than later' · Checked October 17, 2026

4. According to the CFPB, after a lender checks your credit you might start getting other offers of loans or credit, called 'trigger leads'; these offers are generally allowed under the Fair Credit Reporting Act, and you have the right to opt out of receiving them.

   Sources 1 · Contact multiple lenders, 'You can decide whether to allow a lender to check your credit': 'trigger leads'; 'The offers are generally allowed under the Fair Credit Reporting Act'; 'You have the right to opt out of receiving the offers' · Checked October 17, 2026

5. The CFPB says that even if a real estate agent or homebuilder has a preferred lender, you should still look for a better deal: you can and should shop around.

   Sources 1 · Contact multiple lenders: 'Even if a real estate agent or homebuilder has a preferred lender, still look for a better deal'; 'you can and should shop around to make sure you're getting the best deal' · Checked October 17, 2026

6. According to the CFPB, if a loan officer makes you uncomfortable, can't answer your questions or is too pushy, look for another lender; and always check that the documents you receive match what the loan officer tells you.

   Sources 1 · Contact multiple lenders, 'How to avoid pitfalls': 'If a loan officer makes you uncomfortable, can't answer your questions, or is too pushy, look for another lender that is a better fit'; 'always make sure to check that the documents you receive match what the loan officer tells you' · Checked October 17, 2026

7. According to the CFPB, a lender is a financial institution that makes direct loans; a mortgage broker does not lend money but helps you find different lenders or mortgage loans, and you pay the broker a loan-specific fee for their services; some financial institutions operate as both lenders and brokers, so you should ask whether a broker is involved in your loan; and with either one you should shop around for the best loan terms and the lowest interest rates and fees.

   Sources 2 · What is the difference between a mortgage lender and a mortgage broker? (last reviewed December 11, 2024): 'A lender is a financial institution that makes direct loans'; 'A broker does not lend money'; 'You can use a broker to find different lenders or mortgage loans'; 'you pay them a loan-specific fee for their services'; 'you should ask whether a broker is involved in your loan transaction'; 'you should always shop around for the best loan terms and the lowest interest rates and fees' · Checked October 17, 2026

8. According to the CFPB, the person who helps you get a mortgage is usually paid a loan-specific fee or commission, paid by you or by the lender; loan officers often work for one specific lender and brokers typically work with multiple lenders; federal law prohibits commissions from varying based on the terms of the mortgage; and before working with one, you should understand their fees and who pays them.

   Sources 3 · How does a mortgage loan officer or broker get paid? (last reviewed January 7, 2025): 'they are usually paid a loan-specific fee or commission'; 'This money is paid by you or by the lender you use'; 'Mortgage loan officers often work for one specific lender'; 'Mortgage brokers typically work with multiple lenders'; 'federal law prohibits commissions from varying based on the terms of the mortgage'; 'make sure you understand their fees and who pays them' · Checked October 17, 2026

9. Under Regulation Z, a loan originator may not be paid compensation based on the terms of the loan, and may not steer you into a loan because the lender will pay them more for it than for other loans they offered or could have offered you, unless the loan is in your interest.

   Sources 4 · 12 CFR §1026.36(d)(1)(i) ('compensation in an amount that is based on a term of a transaction') and (e)(1) ('based on the fact that the originator will receive greater compensation from the creditor in that transaction than in other transactions'; 'unless the consummated transaction is in the consumer's interest') · Checked October 17, 2026

10. Under Regulation Z, the company that originates the loan must put its name and NMLS ID, and the name and NMLS ID of the loan officer primarily responsible, on the credit application, on the disclosures required by §1026.19(e) and (f) (the Loan Estimate and the Closing Disclosure), on the note or loan contract and on the security instrument; the NMLS ID exists, among other things, to give the public access to loan originators' employment history and the publicly adjudicated disciplinary and enforcement actions against them.

    Sources 4 · 12 CFR §1026.36(g)(1)–(3): 'Its name and NMLSR ID'; 'The name of the individual loan originator'; 'The credit application'; 'The disclosures required by'; 'The note or loan contract'; 'The security instrument'; 'public access to the employment history of, and the publicly adjudicated disciplinary and enforcement actions against, loan originators' · Checked October 17, 2026

11. Under the federal SAFE Act, an individual may not engage in the business of a loan originator without first obtaining a registration as a registered loan originator, or a license and registration as a state-licensed loan originator, and a unique identifier.

    Sources 5 · 12 U.S.C. §5103(a): 'an individual may not engage in the business of a loan originator without first'; 'a registration as a registered loan originator'; 'a license and registration as a State-licensed loan originator'; 'obtaining a unique identifier' · Checked October 17, 2026

12. According to the CFPB, the Nationwide Mortgage Licensing System & Registry (NMLS) maintains a free service where you can see if a financial-services company or professional is authorized to do business in your state, and you can usually check whether there is a disciplinary order against an individual loan originator or company with your state regulator.

    Sources 6 · Is there any way I can check to see if the company or person I contact is permitted to make or broker mortgage loans? (last reviewed April 3, 2024): 'maintains a free service where you can see if a financial-services company or professional is authorized to conduct business in your state'; 'order of disciplinary action against the individual loan originator or company by checking with your state regulator' · Checked October 17, 2026

13. According to the CFPB, the NMLS Consumer Access website may list some disciplinary actions against brokers, and if you have problems with your mortgage broker you may submit a complaint to the CFPB online or by calling (855) 411-2372.

    Sources 7 · Is there any way I can see if there have been disciplinary actions against my broker? (last reviewed December 11, 2024): 'the NMLS Consumer Access website may list some disciplinary actions against brokers'; 'you may submit a complaint to the CFPB online, or by calling (855) 411-2372' · Checked October 17, 2026

14. According to the CFPB, a lender's credit check is reported as an inquiry, which typically has a small negative effect on your scores; but within a 45-day window, multiple credit checks from mortgage lenders are recorded as a single inquiry, so you can shop around and get multiple preapprovals and Loan Estimates; checking your own credit does not affect your scores; and you should try to avoid applying for other types of credit right before or during the mortgage process.

    Sources 8 · What happens when a mortgage lender checks my credit? (last reviewed August 28, 2026): 'An inquiry typically has a small negative effect on your credit scores'; 'Within a 45-day window, multiple credit checks from mortgage lenders are recorded on your credit report as a single inquiry'; 'You can shop around and get multiple preapprovals and official Loan Estimates'; 'Checking your own credit does not affect your credit scores'; 'try to avoid applying for these other types of credit right before getting a mortgage or during the mortgage process' · Checked October 17, 2026

15. The CFPB's 'Your home loan toolkit' says mortgages are typically offered by community banks, credit unions, mortgage brokers, online lenders and large banks; recommends getting at least three offers in writing; and says some lenders may offer a discount to borrowers who completed a home buyer education program.

    Sources 9 · Your home loan toolkit, section 1, 'Shop with several lenders', p. 9: 'Mortgages are typically offered by community banks, credit unions, mortgage brokers'; 'online lenders, and large banks'; 'Get at least three offers—in writing'; 'For example, you might find a discount is offered for borrowers'; 'who have completed a home buyer education program' · Checked October 17, 2026

16. According to the CFPB's 'Your home loan toolkit', Total Loan Costs are in Section D on page 2 of the Loan Estimate; you should concentrate on Sections A and B because you can shop for the Section C services with any lender; Section J shows lender credits; on page 3 you can compare the APR, a measure of your costs over the loan term expressed as a rate, and the TIP; a loan with a low APR or TIP could have high initial costs, so you should also check the table comparing costs over the first five years.

    Sources 9 · Your home loan toolkit, section 1, p. 9: 'Total Loan Costs are shown in Section D'; 'Concentrate on the costs in Sections A and B, because you can shop for the services in Section C'; 'Section J shows lender credits'; 'which is a measure of your costs over the loan term expressed as a rate'; 'You can use APR and TIP to compare loan offers'; 'A loan with low APR or TIP could have high initial costs'; 'also check the table to compare costs over the first five years' · Checked October 17, 2026

17. According to the CFPB's 'Your home loan toolkit', receiving a Loan Estimate does not commit you to that lender, and you are not committed to any lender before you sign the final closing documents; when you choose, you tell the loan officer you want to proceed ('intent to proceed'), and lenders have to wait until then before they require you to pay an application fee, appraisal fee or most other fees.

    Sources 9 · Your home loan toolkit, section 1, 'Intent to proceed', p. 11: 'You have not committed to this lender'; 'you are not committed to any lender before you have signed final closing documents'; 'This is called expressing your intent to proceed'; 'Lenders have to wait until you express your intent to proceed before they require you to pay an application fee, appraisal fee, or most other fees' · Checked October 17, 2026

18. According to the CFPB's 'Your home loan toolkit', mortgage interest rates change daily, sometimes hourly; a rate lock sets your interest rate for a period of time; the rate on your Loan Estimate is not a guarantee; extending a lock could be expensive if your purchase needs more time; rate lock policies vary by lender; and it suggests asking what lock time frame the Loan Estimate provides, whether a shorter or longer lock is available and at what cost, and what happens if closing is delayed and the lock expires.

    Sources 9 · Your home loan toolkit, section 1, 'Rate lock', pp. 11–12: 'Mortgage interest rates change daily, sometimes hourly'; 'A rate lock sets your interest rate for a period of time'; 'The interest rate on your Loan Estimate is not a guarantee'; 'It could be expensive to extend if your transaction needs more time'; 'Rate lock policies vary by lender'; 'What rate lock time frame does this Loan Estimate provide?'; 'Is a shorter or longer rate lock available, and at what cost?'; 'What if my closing is delayed and the rate lock expires?' · Checked October 17, 2026

19. The CFPB's 'Your home loan toolkit' says that if you have a problem with your application or with how the loan officer treats you, you can ask to talk to a supervisor and look up more about the loan officer at nmlsconsumeraccess.org; that the Fair Housing Act and the Equal Credit Opportunity Act prohibit housing and credit discrimination, and you can complain to the CFPB at (855) 411-2372 or consumerfinance.gov/complaint, or to HUD at (800) 669-9777; and not to believe anyone who says they are your 'only chance' to get a loan or that you must 'act fast'.

    Sources 9 · Your home loan toolkit, section 1, 'Handle problems', p. 13: 'Ask to talk to a supervisor'; 'You can look up more about your loan officer at'; 'nmlsconsumeraccess.org'; 'The Fair Housing Act and Equal Credit Opportunity Act prohibit'; 'housing and credit discrimination'; 'call the Consumer Financial Protection Bureau at (855) 411-2372 or visit consumerfinance.gov/complaint'; 'by calling (800) 669-9777'; 'Don't believe anyone who tells you they are your'; 'only chance to'; 'act fast' · Checked October 17, 2026

20. According to the CFPB, the Equal Credit Opportunity Act (ECOA) makes it illegal to discriminate when you apply for credit because of race, color, religion, national origin, sex, marital status, age or receiving money from public assistance, and lenders may not charge you higher costs, such as a higher interest rate or higher fees, because of those factors; within limits they may consider other factors, such as your income, debt and credit history; warning signs include being treated differently in person than on the phone or online, being discouraged from applying, or being pushed toward a loan with less favorable terms; and for legal resources state by state it points to lawhelp.org.

    Sources 10 · Credit discrimination is illegal: 'it is against the law to discriminate because of'; 'National origin'; 'Receiving money from public assistance'; 'Lenders are not allowed to charge higher costs, like a higher interest rate or higher fees, because of the factors on the list'; 'Within limits, lenders are allowed to consider other factors, such as your income, debt, and credit history'; 'Treated differently in person than on the phone or online'; 'Discouraged from applying for credit'; 'Encouraged or told to apply for a type of loan that has less favorable terms'; 'For legal resources listed state by state, visit: lawhelp.org' · Checked October 17, 2026

21. According to the CFPB, the Loan Estimate is a three-page form you receive after applying for a mortgage; the lender must give it to you within three business days of receiving your application; all lenders must use the same standard form, which makes comparing easier; and when you receive it, the lender has not yet approved or denied your application.

    Sources 11 · What is a Loan Estimate? (last reviewed August 9, 2024): 'a three-page form that you receive after applying for a mortgage'; 'within three business days of receiving your application'; 'All lenders are required to use the same standard Loan Estimate form'; 'the lender has not yet approved or denied your loan application' · Checked October 17, 2026

22. Under Regulation Z, neither the lender nor anyone else may charge you a fee in connection with your application before you receive the Loan Estimate and tell the lender you intend to proceed, except a bona fide and reasonable fee for obtaining your credit report.

    Sources 12 · 12 CFR §1026.19(e)(2)(i)(A) ('neither a creditor nor any other person may impose a fee on a consumer in connection with the consumer's application'; 'indicated to the creditor an intent to proceed') and (e)(2)(i)(B) ('a bona fide and reasonable fee for obtaining the consumer's credit report') · Checked October 17, 2026

23. According to the CFPB, points (discount points) lower your interest rate in exchange for paying more at closing, and one point equals one percent of the loan amount; lender credits lower your closing costs in exchange for a higher rate; and when comparing offers it recommends asking each lender for the same amount of points or credits.

    Sources 13 · How should I use lender credits and points (also called discount points)? (last reviewed October 19, 2023): 'Points lower your interest rate, in exchange for paying more at closing. Lender credits lower your closing costs up front, in exchange for a higher interest rate.'; 'One point equals one percent of the loan amount'; 'ask for the same amount of points or credits from each lender' · Checked October 17, 2026

24. In a December 2003 legal opinion, the NCUA (the federal regulator of credit unions) saw no legal impediment to a federal credit union lending to members who use an ITIN or matrícula consular instead of a Social Security number, as long as it identifies and addresses the risks of that activity.

    Sources 14 · NCUA Legal Opinion 03-0964 (December 2003): 'rather than a social security number'; 'We see no legal impediment to this plan'; 'an FCU must be sure to identify and address any risks associated with this initiative' · Checked October 17, 2026

25. FDIC public Community Reinvestment Act evaluations document banks that offer ITIN mortgage loans; for example, a July 2024 evaluation describes an ITIN loan program designed for individuals who earn an income in the United States but do not qualify for a Social Security number, and who typically cannot obtain a conventional mortgage loan.

    Sources 15 · FDIC Public Disclosure, Community Reinvestment Act Performance Evaluation (July 8, 2024), 'Individual Taxpayer Identification Number (ITIN) Mortgage Loans', p. 13: 'designed for individuals that earn an income in the United States, but do not qualify for a Social Security number'; 'provides loans to individuals with an ITIN who typically are not able to obtain a conventional mortgage loan' · Checked October 17, 2026

26. According to the CDFI Fund, certified CDFIs are specialized organizations that provide financial services in low-income communities and to people who lack access to financing; they include community development banks and credit unions and loan funds; the Fund publishes the list of certified CDFIs; and its awards can finance, among other things, mortgage lending for first-time homebuyers.

    Sources 16 · CDFI Certification: 'specialized organizations that provide financial services in low-income communities and to people who lack access to financing'; 'community development banks and credit unions, and non-regulated institutions like loan and venture capital funds'; 'List of Currently Certified CDFIs'; 'mortgage lending for first-time homebuyers' · Checked October 17, 2026

27. HUD-approved housing counselors give independent advice on buying a home, renting, defaults and credit, often at little or no cost.

    Sources 17 · Find a Housing Counselor: 'Housing counselors throughout the country can provide advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'they can offer independent advice, often at little or no cost to you' · Checked October 17, 2026