Start with the Loan Estimate, the standardized form every lender must provide within a few business days of your application. Lay the two forms next to each other and go straight to the interest rate, the monthly principal and interest payment, and the total closing costs. A lower rate with heavier fees can cost more than a slightly higher rate with a clean fee sheet, especially if you plan to move or refinance within a few years. Look closely at the sections covering origination charges, third-party services, and prepaid items, because costs sometimes shift between columns in ways that flatter one offer. Compare the figures line by line, not by the headline number you heard on the phone.

Next, check whether each rate is locked and for how long, since a lock that expires before closing can quietly reprice your loan. Ask how many days the lock covers and whether an extension costs extra. Pay attention to points and lender credits, and find out whether the offer assumes you will keep the loan for its full term or pay it off early. Terms matter too, because a shorter loan and a longer one can produce very different monthly payments and very different total interest paid. Finally, confirm whether the rate is fixed or adjustable, and if it adjusts, read exactly how and when the change would happen.

For buyers, the better offer is the one that fits how long you expect to keep the loan, not just the one with the lowest number today. If you expect to sell or refinance within a few years, upfront costs deserve more weight than a small difference in rate. If you plan to stay put, paying a bit more at closing may be worth it for a rate that holds up over time. Sellers and their agents benefit too, because a buyer who understands the offers is less likely to be surprised when the final numbers arrive. Rates have been moving with market swings this fall, so timing the lock is worth discussing before you commit.