Whether you’re looking for more space for a growing family, a shorter commute, a new neighborhood, or simply daydreaming about the perfect porch for your morning coffee, a mortgage is a key part of turning your homeownership goals into reality. Whatever is inspiring your next move, before you start house hunting, it’s important to understand know what your mortgage options are.
Keep reading for tips on shopping for a mortgage, from easy ways to help determine how much you can afford to what extra fees to look out for. You'll also discover how Alliant's Journey Home program can help you finance, find a home, and move in, while earning up to $9,000 back at closing.*
Before comparing mortgage lenders, calculate how much home you can comfortably afford so you can request accurate mortgage quotes.
You’ll need to put together some basic but pertinent information to make it easier to get mortgage quotes. First, figure out the estimated home price range you can afford—use a simple mortgage calculator to help you—and your estimated down payment amount. Note that lenders typically price their mortgage loan programs based on your down payment percentage (0%, 3%, 5%, 10%, and 20% or above), not the actual dollar amount.
Next, determine an estimated timeframe when you plan to purchase your new home, the property type you’re interested in, such as a single-family home or condo, and whether you’ll be using the property as your primary residence, a vacation home, or an investment property.
If you’re aiming to be in your next home for a new school year or a desired season, set a realistic timeline. Most U.S. homebuyers spend about two to three months searching for a home, then another one to two months completing the mortgage and closing process. In competitive markets with limited inventory, the search portion can take several months longer.
A good rule of thumb is to compare at least three mortgage lenders, plus your current bank or credit union if they offer home loans.
When requesting a quote, some lenders may perform a hard credit inquiry, which could negatively impact your credit score. However, some lenders, like Alliant Credit Union, have tools on their website so that you can estimate your mortgage payment before formally applying and having your credit pulled. When that is the case, there is no harm in getting multiple quotes, comparing them, and then requesting an official quote from a lender or two.
Mortgage lender comparison checklist
The best mortgage is not always the one with the lowest advertised rate. Different loan types have different down payment requirements, qualification standards, and long-term costs.
Each lender should give you multiple options to consider. Typically, a lender will show you their 30-year fixed mortgage rate, which tends to be the more popular option. But, if the loan officer has asked you questions and gathered information based on your specific situation, they should also be able to give you one or two alternatives to consider. For instance, they might give you an option between a 10-year adjustable rate and 30-year fixed rate. If they don’t give you these options right from the beginning, don’t be afraid to ask.
Types of mortgages a lender could provide include:
Ask lenders about any fees they charge and estimated third-party costs, like appraisal or legal fees. Some lenders may charge one flat fee for loan originations for all of its mortgage products, but others may break their fees into categories like origination, underwriting, and processing.
If you are putting down less than 20% for a down payment, ask the lender if they require you to have private mortgage insurance (PMI) or to escrow funds for property taxes and home insurance into your monthly payments.
Another consideration is the lender’s process. You want to make sure you close on time once you go under contract, so if the lender can’t lay out a streamlined process to help ensure it happens, that could lead to major headaches down the road.
Alliant Credit Union offers a range of home loan options along with tools to help you plan your purchase. Explore mortgage programs, get prequalified with no application fee, request a customized rate quote, or connect with an Alliant mortgage loan officer to talk through your options.
Learn more about Alliant mortgages.
Shopping for a mortgage is only part of the homebuying process. Finding the right property, having an experienced real estate agent, and navigating ins and outs of financing, plus the logistics of moving, can be overwhelming. Alliant's Journey Home guides you through every stage of buying and moving into a home, from financing and finding an agent to moving in together in one place, while also offering you the opportunity to earn money back at closing.*
Journey Home brings everything into one connected experience. Here's a closer look:
Journey Home works for first-time buyers, repeat buyers, and homeowners looking to refinance. One more perk worth noting: You can access the real estate benefits even if you choose not to finance through Alliant.*
How many mortgage lenders should I compare?
Most experts recommend comparing at least three mortgage lenders to evaluate rates, fees, loan terms, and customer service options.
Does shopping for a mortgage hurt your credit score?
Multiple mortgage inquiries made within a short shopping window, typically 14 to 45 days, are generally treated as a single inquiry for credit-scoring purposes.
What should I look for in a mortgage lender?
Look for a lender that offers competitive rates, transparent fees, the right loan options for your needs, strong customer service, and a reliable closing timeline. It’s also important to compare APR, PMI requirements, and total cash needed at closing.
What credit score do you need for a mortgage?
Minimum requirements vary by lender and loan type, but higher credit scores generally qualify for better mortgage rates. Learn more about credit scores and mortgage rates.
What is the best way to compare mortgage lenders?
Compare APR, interest rates, closing costs, lender fees, customer reviews, and available loan programs.
How long does mortgage shopping take?
Many borrowers can compare quotes within a few days and complete underwriting in several weeks.
Is the lowest mortgage rate always the best deal?
Not always. A lower rate can still come with higher lender fees, mortgage insurance costs, or less favorable loan terms. Comparing APR and total closing costs can give you a more complete picture.
* The cash back bonus is offered in most states. In some states, a gift card or commission reduction at closing may be provided in lieu of the cash back bonus. The program is not available for employer-sponsored relocations or transactions in Iowa or outside the United States. The cash back bonus is not available in Alaska and Oklahoma. In Kansas and Tennessee, a MasterCard® MAX gift card will be issued. In Mississippi, New Jersey, and Oregon, a commission reduction may be available at closing. The cash back bonus is only available with the purchase and/or sale of your home through the use of a program-introduced real estate agent. The actual amount you receive is based on the purchase and/or sale price of your home. The program award is not available in certain transactions with restricted or reduced agent commissions (including many new construction, For Sale by Owner, or For Sale by iBuyer transactions or where a minimum transaction side commission is not paid). Your assigned agent or a real estate coordinator can help you identify any transactions where the award would not be available. All real estate commissions are negotiable. Participating program real estate agents are affiliated with the participating real estate brands: Coldwell Banker®, Century 21®, ERA®, Better Homes and Gardens Real Estate®, and Corcoran Group® and all related logos are trademarks owned or licensed by Anywhere Real Estate or its affiliated companies. Customers are not required to receive financing through Alliant Credit Union in order to receive benefits of this program, with exception to the complimentary one-year home warranty. This is not a solicitation if you are already represented by a real estate broker. Please check with a program coordinator for details. Program terms and conditions are subject to change at any time without notice. Additional terms, conditions, and restrictions apply. Full disclosures of Alliant Journey Home Program Disclaimer (PDF).
You focus on the home, we’ll focus on the loan
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