Understand which loan type fits your situation, what actually drives your rate, and what lenders look for — then compare offers from licensed mortgage lenders.
Most people shop for a house far harder than they shop for the loan, which is backwards. The house is a one-time decision. The mortgage follows you for thirty years, and a half-point difference in rate on a $400,000 loan costs tens of thousands over the life of the loan.
Loan types and who they fit
Conventional loans are the standard option, not government-backed. They typically require a credit score around 620 minimum, though better rates start closer to 740. Put down less than 20% and you’ll pay private mortgage insurance until you build enough equity to drop it.
FHA loans are backed by the Federal Housing Administration and built for buyers with lower credit scores or smaller down payments. You can qualify with a score in the 500s depending on down payment. The tradeoff is mortgage insurance that often lasts the life of the loan rather than falling off at 20% equity.
VA loans are available to eligible service members, veterans, and some surviving spouses. No down payment required, no mortgage insurance, and rates are typically competitive. If you qualify, this is almost always the best option available.
USDA loans cover rural and some suburban properties with no down payment for buyers under certain income limits. The geographic restrictions are broader than most people assume — worth checking whether a property qualifies.
Jumbo loans exceed conforming loan limits, which vary by county. Expect stricter credit requirements, larger down payments, and more documentation.
Fixed versus adjustable
A fixed-rate mortgage locks your rate for the full term. Predictable, and the right call if you’re staying put or if rates are low when you lock.
An adjustable-rate mortgage starts lower, then adjusts on a set schedule after an initial fixed period — commonly 5, 7, or 10 years. It can make sense if you’re confident you’ll sell or refinance before the adjustment hits. It’s a gamble if you’re not.
Ask about caps on any ARM: how much the rate can move per adjustment and over the life of the loan. Those numbers define your worst case.
What actually determines your rate
Credit score is the biggest lever you control. The difference between a 680 and a 760 can be meaningful on the rate you’re offered.
Down payment size matters — more equity means less risk to the lender.
Debt-to-income ratio compares your monthly obligations to gross monthly income. Most lenders want to see 43% or below, though some programs allow higher.
Loan term affects rate directly. A 15-year loan carries a lower rate than a 30-year, with a higher payment.
Points let you buy the rate down by paying cash upfront. Whether that’s worth it depends entirely on how long you’ll hold the loan — calculate the breakeven before agreeing.
Why comparing lenders matters
Rates vary between lenders on the same day for the same borrower. Getting quotes from several isn’t just about the headline rate — origination fees, lender credits, and closing costs differ meaningfully.
Request a Loan Estimate from each lender. It’s a standardized form, which makes side-by-side comparison straightforward. Page one shows your rate and monthly payment. Page two breaks out every fee.
Multiple mortgage inquiries within a short window count as a single inquiry for credit scoring purposes, so shopping around doesn’t damage your score.
Getting quotes
Tell us about your situation and we’ll connect you with licensed mortgage lenders who can quote your scenario.
By submitting this form you agree to be contacted by licensed mortgage lenders regarding your request. This is not a loan application and no credit decision is made. Your information is not sold to third parties.