Mortgage Shopping Tips for 2026: How To Compare Lenders, Rates, and Fees Without Getting Burned

If affordability is the word that defined 2025, attainability might be the one that comes to define 2026—especially for homebuyers. 

These beleaguered yet hopeful house hunters are likely to spend another year navigating the market amid stubborn mortgage rates that make monthly payments high, despite home prices pulling back in some areas. In practical terms, that means the mortgage product will matter just as much as the house in the year ahead.

Shopping for a mortgage remains among the most common advice given to first-time and repeat buyers alike, but when they do follow it, many buyers often find that it’s rarely an apples-to-apples comparison. Instead, they’re weighing stale quotes or entirely different products against one another.

Steven Parangi, a licensed mortgage loan originator at Alpine Mortgage Services, puts it this way: “What most borrowers get wrong is [that] they collect quotes over a two-week period from different lenders, compare them casually, and think they've done their homework. That's not shopping. That's collecting stale data.”

In 2026, finding attainable and affordable housing will mean creating true comparisons among loan products and knowing exactly where lenders can make an offer look better than it really is.

We spoke to mortgage experts to help break down how to find comparable loan estimates, which line items matter the most, and the red flags that can turn a “great rate” into a costly surprise right before closing.

Get loan estimates on the same day

If you do only one thing to get a better mortgage deal in 2026, make it this: Get multiple loan estimates from different lenders on the same day using the same loan setup.

It may seem like obvious advice, but it’s also where most buyers go wrong, says Parangi.

“The single most effective step is getting a few legitimate loan estimates from different lenders or brokers on the same day for the exact same loan scenario and lock period,” he says. “Rates move daily, sometimes significantly.” 

In other words, a quote you get on a Monday can’t be meaningfully compared to one you get on Thursday. When you weigh these offers against each other, you’re evaluating timing as much as the lender.

To create a true comparison, buyers need to lock down every variable in their control: credit score, down payment, loan amount, property type, lock length, and no points—unless you're specifically testing rate buydowns. 

“Pick one scenario ... and make every lender issue a locked loan estimate on that exact setup,” says Matt Schwartz, a mortgage broker with VA Loan Network. “That one step routinely uncovers hidden cost shifting.”

When done right, this strategy produces leverage, which can then turn into real savings.

“I routinely see rate differences of 0.25% to 0.5% between lenders on the same borrower,” says Parangi. On a $400,000 loan, that difference would translate into $24,000 to $46,000 in savings over 30 years, assuming an interest rate that's between 6% and 6.5%.

The loan estimate lines that matter the most

Once you’ve collected multiple loan estimates on the same day, the next step is knowing how to read them. 

These forms—not email quotes, not rate sheets—are your only reliable way to compare lenders. But even though loan estimates are standardized, experts warn that offers can sometimes look better without actually being cheaper.

“Lenders have gotten creative about making their offers look better than competitors', and most borrowers fall right into the trap,” says Parangi.

The key, he says, is to focus on the parts of the estimate that actually move the needle, and to understand how those lines interact. 

He recommends starting with Section A: Origination Charges.

“This is the lender's profit on the deal. Everything in Section A is negotiable,” Parangi says. “I've seen borrowers save $2,000 or more just by pushing back on Section A fees.”

Schwartz agrees: “Obsess over Section A origination, points, lender credits, and APR,” he says. “Escrows and prepaids are usually [just] noise.”

Next, they warn that the most common mistake is comparing one lender’s quote with zero points to another lender’s lower rate that’s only available by paying 2 or 3 points upfront. 

“You’re looking at two different economic products,” Parangi explains. “It might look like a better deal, but unless you run the break-even math, it could actually cost you more.”

This dynamic is now playing out in new-construction homes, where builders have been offering eye-catching mortgage rate buydowns to move unsold inventory. Yet, some owners of these homes are now underwater on their mortgage at alarming rates as the market can't absorb their higher sale prices.

In the third quarter of 2025, the average 30-year mortgage rate for new-construction homes sold was 5.27%—nearly a full point lower than for existing homes, according to Realtor.com® data. That kind of discount can shave $230 off a typical monthly payment—and bring a home purchase within reach. 

But a recent analysis found that builder-affiliated lenders are seeing significantly higher rates of underwater mortgages than mainstream lenders: Nearly 27% of loans originated by Lennar’s mortgage arm between 2022 and 2024 are now underwater, along with 18% of loans from D.R. Horton’s lending arm, the nation’s largest homebuilder.

That’s why understanding the full loan estimate and what’s baked into the rate is important for homebuyers: A low rate might be masking another side of the deal that ends up making the home unaffordable down the road.

The break-even math that tells you if it's worth it

Rate buydowns and discount points aren’t limited to new-construction deals. They show up in everyday lender offers for existing-home buyers, too—which is exactly why all house hunters should understand how to calculate the break-even point. After all, when used effectively, they can lower your rate and save you money. But they’re also one of the easiest ways to overpay if you don’t crunch the numbers right.

“Discount points are prepaid interest,” explains Parangi. “You pay money upfront to reduce your rate.” The idea is that you spend more at closing to save on monthly payments, but only if you hold the loan long enough for the savings to offset the cost.

To find your break-even point, use the following formula:

Break-even (in months) = cost of points divided by your monthly payment savings

For example, if you pay $10,000 upfront and save $100 each month, it will take about 100 months, or just over eight years, before you come out ahead.

Ryan Wright, real estate investor and CEO of The Investor’s Edge, puts a finer point on it: “Discount points only make sense when the break-even is significantly within your realistic hold period, not your optimal one.”

The risk in 2026 is that you might not keep the loan that long. If rates drop and you refinance, or if you sell your home and move, you may not reach break-even. That means you could end up paying for savings you never actually receive.

That’s why the experts we spoke to emphasize the importance of stress-testing your assumptions and checking that the points you're paying for are fairly priced.

Parangi advises a rough benchmark: “A fair exchange is roughly 0.25% rate reduction per point.” 

In a volatile market, the lowest rate isn’t always the best deal. Instead, focus on total cost and total savings over the time you’re likely to keep the mortgage.

Fine-print traps: Rate locks, float-downs, and 'pre-approvals' that aren’t

Even when the rate looks competitive and the fees check out, mortgage deals can still unravel if the fine print isn’t locked down. These are the details that matter, and the ones most likely to derail your deal if you overlook them.

Start with rate locks. This is the term that your lender agrees to hold your mortgage interest rate. Parangi says that the best pricing usually assumes a 15- to 30-day lock, but they can be as long as 60 days. 

“Buyers should ask: What is the lock period built into this quote, what does an extension cost, and what happens if the seller needs more time?” he says.

If the lock expires before your loan closes, you may face costly extension or relock fees that wipe out the savings you negotiated upfront.

Float-downs, which let you capture a lower rate if market conditions improve, can be valuable, but only if the rules are clear. Both Parangi and Wright emphasize the importance of getting the exact rules in writing.

But the biggest trap might be the pre-approval letter. 

“Some lenders issue pre-approval letters based on a quick phone call and a credit check without reviewing pay stubs, tax returns, or bank statements. That’s not a pre-approval,” Parangi warns. “When you go under contract and the lender finally reviews your actual documentation, surprises emerge. Your deal falls apart. You lose the house.”

Instead, insist on a fully underwritten (or document-verified) pre-approval before you shop seriously, and ask the lender directly if it has reviewed your pay stubs, tax returns, and bank statements, and if that has factored into the lender's decision.

Each of these details points to a bigger shift in how borrowers need to think in 2026: In a market where mortgage rates and home prices are in flux, it’s not enough to chase the best deal—you also need to stress-test and protect it. That means knowing what’s in writing, what’s missing, and what could change before you close.