Shopping Mortgage Lenders in Colorado: How Many Quotes Is Too Many?
By Ben Yost ·
I’m Ben Yost, a Colorado mortgage broker with 25+ years of experience. Shopping around is smart. But there’s a point where more quotes stop helping and start hurting.
The short answer
Get two or three solid quotes and compare them the same day, on the same terms. That’s it. Past that, most buyers aren’t getting a better deal. They’re getting a headache. The real win isn’t how many quotes you collect. It’s knowing how to read them.
A real story: seven lenders, one very confused buyer
I worked with a very well-qualified buyer: great income, great credit, the kind of file lenders fight over. And he had shopped seven different lenders.
To be honest, when you shop that many lenders, you get very confused. Everybody’s throwing acronyms at you. Everybody’s quote looks a little different. Everybody says theirs is the one.
So I jumped on a Zoom call with him and walked through all of it: every acronym, every line he’d been hearing, in plain English. Once it made sense, he could actually compare. And I was able to beat the rate and terms he’d been offered.
He decided to go with me. But the other lenders kept calling him. (Of course they did.) And he kept listening, which is fair. They’d come back with a sharper offer than before, and every time, I was able to beat it again.
Today he’s living in a great home in Aurora with his wife and their dogs. He couldn’t be happier. He’s told everyone at work about me, and I’ve had several of his coworkers call with questions. Some aren’t ready to buy yet, and that’s great. When they are, I’ll be there.
Why seven quotes can make things worse
It’s not that the other lenders were bad. It’s that quotes are really easy to make look different from each other:
- Different days. Pricing changes daily, sometimes more than once. A Monday quote and a Thursday quote aren’t a fair fight.
- Different assumptions. One quote assumes a 30-day lock, another a 45-day. One assumes a higher credit score or bigger down payment than you actually have.
- Points hiding in the rate. A quote that looks cheaper may include points you pay upfront to get it.
- Teaser quotes. Some lenders quote a number to win the call, and the real Loan Estimate looks different.
More quotes means more ways to compare apples to oranges.
The mortgage acronyms, decoded
Here’s the cheat sheet I walk my clients through:
- LE (Loan Estimate): The standard three-page offer every lender has to give you within three business days of applying. Your best comparison tool.
- CD (Closing Disclosure): The final version of your loan terms, which you get at least three business days before closing.
- APR: Your interest rate plus certain upfront costs, shown as a yearly rate. It helps you see the true cost.
- Points: Money paid upfront to buy a lower rate. One point equals 1% of the loan amount.
- Lender credit: The opposite of points. You take a slightly higher rate, and the lender helps cover your closing costs.
- Rate lock: A promise to hold your rate for a set number of days while your loan closes.
- DTI (debt-to-income): Your monthly debts divided by your monthly income. Lenders use it to size how much you can borrow.
- LTV (loan-to-value): Your loan amount divided by the home’s value. Less down means a higher LTV.
- PMI: Private mortgage insurance, added on many conventional loans with less than 20% down. It can come off later.
- Escrow: An account that collects your property taxes and homeowners insurance with your monthly payment.
How to compare mortgage quotes the right way
- Get them the same day. Ideally the same morning.
- Give every lender the same facts. Same price, same down payment, same loan program, same credit info.
- Ask for the same lock period on every quote.
- Compare the Loan Estimates, not the phone calls. Look at the rate, Section A (points and origination charges), any lender credit, and your estimated cash to close.
- Look at the payment and the cash together. A slightly different rate with a big difference in upfront cost can change which one’s actually the better deal.
Nobody writes a check for an interest rate
They write a check for a payment. The rate just dictates the payment. So when you’re comparing offers, don’t just stare at the rate. Look at what you’ll actually pay each month and what it takes to get to closing.
And think about who’s quoting you. A bank or retail lender is showing you one lender’s menu. As a broker, I shop 160+ wholesale lenders and investors on every loan. So one call to me is a lot like getting a stack of quotes, already compared for you.
What to do next
If you’ve got a pile of quotes and you’re not sure which one is real, send them over. I’ll jump on a quick call or Zoom, walk you through them line by line, and show you where I land. If someone else has the better deal, I’ll tell you. No pressure.
Call or text 303-587-4297, or apply online.
Go get ‘em.
Ben Yost | Colorado’s Lending Expert | 25+ years • 160+ investors • 30+ down payment assistance programs | 303-587-4297
This is general information and not a commitment to lend or a rate quote. Rates, points, and fees change daily and depend on your credit, loan amount, property, and loan program. Client stories are real but individual results vary. All loans are subject to credit approval, income and asset verification, property eligibility, and program guidelines.
Ben Yost, Mortgage Broker · Edge Home Finance, LLC · NMLS #243370 · Company NMLS #891464 · Equal Housing Opportunity.
Related reading: What is a lender credit? · Turned down for a mortgage? Here’s what to do next · How to get rid of PMI · Aurora mortgage broker · Denver mortgage broker.
