Compare Mortgage Offers in Seattle: Two Loan Estimates, Side by Side

To compare mortgage offers in Seattle, put two official Loan Estimates side by side that were issued on the same day, for the same loan amount, the same program, and the same lock period. Then read three places in order: the loan terms on page 1, the lender's own charges in Section A on page 2, and the Comparisons block on page 3.

Most people who try to compare mortgage offers in Seattle are comparing two things that are not the same. One quote came from a website on a Tuesday morning, locked for 30 days, with a point built in. The other came from a phone call on Thursday afternoon, floating, with a lender credit. Both are honest. Neither tells you which lender is more competitive for your file, because the market moved in between and the two quotes bought different things.

This guide is the method I would use if I were on your side of the desk: what to line up before you compare, where on the Loan Estimate the real differences hide, how to read points and credits as one decision, and the questions that separate a real offer from a teaser. It does not repeat what closing costs are or why rates move from day to day; those have their own guides, linked where they belong. Nothing here is a rate quote, and every offer you receive is subject to qualification.

Why You Compare Mortgage Offers in Seattle on the Official Loan Estimate

Federal rules give every shopper one standard form. Under Regulation Z, 12 CFR 1026.19(e), a lender must deliver or mail a Loan Estimate no later than the third business day after it receives your application. 12 CFR 1026.37 sets what the form contains and what it is called, and the form says on its face: "Save this Loan Estimate to compare with your Closing Disclosure." Because every lender fills in the same three pages in the same order, it is the only document that lets you compare mortgage offers in Seattle line for line.

An application, for this purpose, is six pieces of information: your name, your income, your Social Security number so a credit report can be pulled, the property address, an estimate of its value, and the loan amount you are asking for. You do not need a signed contract to shop, and the rule also says a lender may not require you to send documents verifying that information before it gives you the Loan Estimate. Other than a reasonable credit report fee, a lender also may not charge you a fee until you have the Loan Estimate and have told them you intend to proceed.

Anything else is a worksheet. If a lender hands you a written estimate before the official form, the rule requires it to carry this sentence at the top of the first page: "Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan." When you see that sentence, you are holding a sales document, not an offer. Worksheets are useful for a first conversation, but they are not the thing to decide on.

Line Up Four Things Before You Compare Mortgage Offers in Seattle

A comparison is only as good as its inputs. Before you put two Loan Estimates next to each other, check that these four match. If any of them differ, the difference in price is partly the difference in what you asked for.

1. The same day, ideally the same morning. Mortgage pricing can change during the day when the bond market moves, which the Eastlake rate read explains. Two estimates issued three days apart are measuring the market as much as the lender.
2. The same loan amount and price. In King County this matters more than most places, because the 2026 conforming limit for a one-unit home is $1,063,750. An estimate at $1,050,000 and one at $1,080,000 may sit on opposite sides of that line and price as different loan types. The high-balance versus jumbo guide covers where that line falls.
3. The same program and term. A 30-year fixed conventional loan, a 30-year FHA loan, and a 7-year adjustable rate are three different products. The Loan Terms table on page 1 names the product; read it before you read the rate.
4. The same lock period. A 60-day lock generally costs more than a 30-day lock, and a floating quote is not locked at all. Page 1 of the Loan Estimate states whether the rate is locked and, if it is, the date and time the lock ends. The rate lock guide covers lock lengths, extensions, and float-downs.

The simplest way to get there is to give every lender the same scenario in writing, on the same day: price, down payment, loan amount, program, occupancy, property type, and the lock period you need for your closing date. If you are buying a condo, say so, because condo files can price and review differently.

Page 1: Loan Terms, Projected Payments, and the Two Expiration Dates

Page 1 is where most people start and stop. Start there, but read it as a checklist rather than a scoreboard. Confirm the loan amount, the product, the interest rate, and whether there is a prepayment penalty or balloon payment. Then look at the projected payments table, which breaks the monthly payment into principal and interest, mortgage insurance, and estimated escrow for taxes and insurance.

Escrow estimates are where two offers on the same house most often look different for no real reason. One lender may have estimated property taxes from the current bill and another from an assumed value, or used a different insurance premium. Those amounts are paid to the county and your insurer, not to the lender, so a lower escrow estimate does not make an offer cheaper. When you compare mortgage offers in Seattle, set escrow aside and compare principal, interest, and mortgage insurance.

Two dates on page 1 matter. The rate lock line shows whether the rate is locked and, if so, when the lock expires. Separately, the form states the date and time the estimated closing costs expire. Under the rule, if you do not tell the lender you intend to proceed within 10 business days of receiving the estimate, or any longer period the lender allows, the lender can issue new figures.

Page 2: Where to Compare Mortgage Offers in Seattle Line by Line

Page 2 is where the lender comparison actually lives. The left side, Loan Costs, is split into three sections, and they do not tell you the same thing.

The rule treats these sections differently at closing. Section A and the services you cannot shop for generally cannot increase at all. For services you can shop for, if you pick from the lender's written list, those charges together with recording fees cannot rise more than 10 percent in total. If you pick a provider who is not on the list, that charge is not capped. Prepaid interest, insurance premiums, and escrow deposits can change freely because they depend on the calendar and on other parties. The closing costs guide covers what each of those line items is; the point here is which ones to weigh when you compare.

So when you compare mortgage offers in Seattle, compare Section A to Section A, and compare the rate to the rate. A lender that looks cheaper because it estimated title insurance lower has not saved you anything; the title company sets that price. The right side of page 2, Other Costs, is taxes, prepaids, and escrow, and it should be nearly identical across lenders on the same house and the same closing date.

Points and Lender Credits: One Trade, Read Two Ways

Every lender can offer a range of rates for the same loan on the same day. A lower rate costs money up front, shown as discount points in Section A. A higher rate can pay you money up front, shown as a lender credit, which appears as a negative number next to "Lender Credits" in the Total Closing Costs line on page 2. It is one trade, cash now against payment later, read in two directions.

That is why the rate alone cannot rank two offers. An offer with a lower rate and points in Section A may be the same underlying price as an offer with a higher rate and a credit. To compare them fairly, ask each lender for the same structure: both at zero points, or both at the same number of points. Then the difference in rate is a real difference in price. If you want to know why the price for your file is what it is in the first place, the guide to how mortgage rates are priced in Seattle walks through the adjustments behind the number.

Which structure is right for you depends mostly on how long you expect to keep the loan, and that is a question about your life rather than your lender. The rate buydown guide covers permanent and temporary buydowns and how to compare the same dollar two ways, and the refinance guide covers the "no-closing-cost" version of the same trade on a refinance.

Page 3: The Comparisons Block and APR's Blind Spot

Page 3 has a small table headed "Comparisons," with the instruction "Use these measures to compare this loan with other loans." It shows three figures:

• In 5 Years: the total of principal, interest, mortgage insurance, and loan costs you are scheduled to pay through the first 60 months, and how much principal you will have paid off.
• Annual Percentage Rate (APR): described on the form as "Your costs over the loan term expressed as a rate. This is not your interest rate."
• Total Interest Percentage (TIP): the total interest over the life of the loan as a percentage of the loan amount.

APR is useful because it folds up-front costs into a single rate. Its blind spot is time. APR spreads those costs over the full loan term, but many Seattle buyers sell, move up, or refinance well before then. On a short holding period, points you paid up front cost more per year than the APR suggests, and a higher-rate offer with a credit can come out ahead even with a higher APR. That is what the In 5 Years figure is for. If you think you will keep the loan about five years, weigh that line more heavily than the APR. If you expect to stay much longer, APR and TIP become more meaningful.

These measures still only work on matched offers. APR on an adjustable-rate loan is calculated under assumptions about future rates, so an ARM's APR and a fixed loan's APR are not a clean comparison.

Lender Types and How They Shape Mortgage Offers in Seattle

You will likely collect estimates from more than one kind of lender, and each is built differently. None is automatically cheaper; the Loan Estimate is how you find out for your file.

• Retail mortgage lenders originate, underwrite, and fund loans with their own staff, and their pricing comes from their own rate sheet. (I work for one.)
• Mortgage brokers do not fund the loan themselves; they place your file with a wholesale lender and are paid by you or by that lender, which shows up in Section A.
• Banks may offer agency loans and their own portfolio loans, and some price better for existing depositors.
• Credit unions are member-owned, may require membership, and may hold some loans rather than sell them.

Whatever the model, the same questions apply: who underwrites the file, how quickly the appraisal and condo review get done, and who you call when a condition comes in on a Friday afternoon. In a competitive Capitol Hill or Wallingford offer, a lender's ability to close on the contract date is part of the price, even though it never appears on the form.

Questions That Expose a Teaser When You Compare Mortgage Offers in Seattle

An advertised number is built to be noticed. These questions turn it into something you can compare.

1. Is this rate locked, and for how many days? A floating quote is a snapshot, not a price.
2. How many points are in Section A, in dollars? A low rate with points and a higher rate without them may be the same price.
3. Is this an official Loan Estimate or a worksheet? Only the Loan Estimate carries the tolerance rules described above.
4. Is it priced for my actual loan amount, property type, and occupancy? A quote priced for a detached house will not hold for a condo or a duplex.
5. What happens if closing slips past the lock? Extension costs differ from lender to lender and can erase a small rate advantage.
6. Does it include a float-down, and what does it cost? Terms vary widely, which is why two locks are not always the same product.

If an answer changes the offer, ask for a revised Loan Estimate reflecting it. Once your rate is locked, the rule requires the lender to send a revised estimate within three business days showing the locked rate, points, and credits, which gives you a clean, dated document to hold the lender to.

After You Choose: Carry the Comparison Into Closing

Choosing an offer is not the last comparison. When you receive your Closing Disclosure, at least three business days before closing, put it next to the Loan Estimate you chose, exactly as the form tells you to. Section A should match unless a revised estimate explained the change. If it does not, ask before you sign.

If you are still earlier than this, the guide to how to get a mortgage in Seattle covers what the underwriter reads before any offer is issued, and the pre-approval guide covers the letter a listing agent will want to see. Buyers focused on a single neighborhood can start from the Eastlake mortgage guide.

FAQ: How to Compare Mortgage Offers in Seattle