Mortgage Rates:

Putting Lenders in Competition

Mortgage shopping can be overwhelming, but the best way to save is by putting lenders in competition for your loan.

Types of Mortgage Lenders

Traditional Lenders

  • Big and Regional Banks – Large, established institutions with many financial services and a large footprint.

  • Community Banks & Credit Unions – Often overlooked, but can have some of the best rates. Credit unions, in particular, prioritize lower fees and better terms for members.

Online Lenders

  • Fast & Digital-First – Pre-approvals (often excessive in notional) in minutes and a streamlined application process.

  • Rate Caveats – Convenience ≠ best rates. Online lenders may not offer the lowest rates, so shopping around is key.

  • Support at Closing – Unlike traditional banks, online lenders often lack hands-on guidance, which can be crucial for first-time buyers.

Mortgage Brokers

  • Pay to Shop – Brokers compare multiple lender offers for you, but they charge fees—either paid by you or the lender. Always ask upfront about costs.

Factors in getting a loan

  1. Credit Score – Sometimes lenders have certain thresholds for rate improvements that they'll openly share. It doesn't hurt to ask if you're close enough to try to improve it prior to a formal application.

  1. Debt-to-Income Ratio (DTI) – The percentage of income spent on debt. Lower DTI = better rates.

  1. Loan-to-Value (LTV) Ratio – Borrowing more vs. home value increases risk. Larger down payments lower rates.

  1. Income & Employment Stability – Steady income & job history show lenders you can make payments, improving approval odds and rate offers.

  1. Loan Type – Fixed, adjustable (ARM), FHA, VA, and jumbo loans all have different risk levels.

  1. Property Type & Occupancy – Second homes and investment properties often come with higher rates.

  1. Market Interest Rate Trends – Rates fluctuate based on inflation, Federal Reserve policy, bond markets and more.

  1. Discount Points & Lender Pricing – You can buy down your rate with discount points.

  1. Other Factors to Consider – Loan term length, Private Mortgage Insurance (PMI), rate lock periods, prepayment penalties, escrow requirements, and lender-specific pricing models.

The importance of competition

Shopping multiple lenders can save thousands over the life of your mortgage. According to Freddie Mac:

• One extra rate quote saves borrowers $600–$1,200 per year in interest.

• Over 30 years, that adds up to $18,000–$36,000 in savings.

• In higher interest rate environments, the savings increase even more, making comparisons even more important.


Even small rate differences matter. On a $400,000 mortgage, a 0.25% lower rate saves over $1,000 per year, or $30,000 over 30 years. The more rates you put incomp, the more money you save.

Typical mortgage timeline

Shopping for a Mortgage (1-2 Weeks):

  • Get pre-approvals from multiple lenders and compare offers. Soon, incomp will automate this process for you.

Making an Offer (1 Week):

  • Once pre-approved, you can confidently make an offer on a home within your budget.

  • Your lender will provide a loan estimate detailing the terms and costs of your mortgage.

Underwriting and Approval (3-6 Weeks):

  • Submit necessary documentation, including income verification, tax returns, and credit history.

  • The lender assesses your risk and verifies the property details.

Closing (1 Week):

  • Review the final loan terms, pay closing costs, and sign the necessary paperwork.

How incomp levels the playing field

We're building a platform that puts mortgage lenders in competition for Millennial and Gen Z borrowers. Compare multiple lender offers in one place—without the legwork, sales calls, repetitive information share, etc.. Sooooon.