How to Compare Washington, D.C. Mortgage Lenders

You do not need to be a finance expert to shop for a great mortgage in Washington, D.C. You just need a simple plan and the right questions. In a higher-cost market, even a small difference in rate or fees can change your monthly payment and your total interest over time. This guide shows you exactly how to compare lenders, read a Loan Estimate, check licensing, and factor in local programs like DC Open Doors and HPAP. Let’s dive in.

Why shopping lenders matters in D.C.

Getting quotes from more than one lender can save you real money. The Consumer Financial Protection Bureau recommends requesting Loan Estimates from multiple lenders on the same day and comparing them side by side, which can save borrowers hundreds per year depending on loan size and rate differences. The CFPB explains how to request and review multiple Loan Estimates.

The Loan Estimate: your best tool

Under federal “Know Before You Owe” rules, lenders must provide a standardized Loan Estimate within three business days of application. It is designed for apples-to-apples comparisons. See the CFPB’s overview of Know Before You Owe.

Page 1: rate, lock, and payment

• Is the interest rate locked, and for how long? Is there a lock fee or extension fee?
• What is the monthly principal and interest, and does it include mortgage insurance or HOA dues?
• Are there points paid to lower the rate?

Page 2: fees and cash to close

• Box A, Origination charges: compare lender fees directly.
• Services you cannot shop for: compare totals, since the lender selects these providers.
• Services you can shop for: you may be able to reduce some of these with your own selections.
• Cash to Close: confirm the total funds needed, including prepaids and credits.

Page 3: APR, TIP, and 5-year costs

• APR reflects the rate plus certain fees and helps you compare overall cost across lenders.
• TIP (Total Interest Percentage) shows how much interest you will pay over the life of the loan as a percent of the amount borrowed.
• Review “In 5 Years” to see payments and principal paid in the early years. Learn more about APR and comparison tools in the CFPB explainer.

Rate, APR, and total cost

Your interest rate drives your monthly payment. APR incorporates certain fees, which is why a loan with a slightly lower rate can have a higher APR if fees are higher. Use both APR and TIP on the Loan Estimate to compare long-term cost, especially if you expect to hold the loan for many years. The CFPB APR explainer offers clear guidance on these tradeoffs.

Fees and cash-to-close decisions

Some lenders pair lower rates with higher upfront fees, while others do the opposite. Focus on three things together: Box A lender fees, Cash to Close, and long-term cost. If you plan to keep the loan a long time, a lower APR can be worth higher upfront costs. If you expect to move or refinance sooner, a lower fee option might make sense.

Match the lender to your loan

Not every lender offers every product. Ask whether they do conventional conforming, FHA, VA, jumbo, renovation, or specialty programs, and whether they are approved to originate the loan type you need. If you plan to use local assistance, ask about specific Washington, D.C. programs and their process.

DC Open Doors

DC Open Doors can provide deferred down payment or closing cost assistance that pairs with a conventional or FHA first mortgage for eligible buyers. Check current eligibility and program details on the DC Open Doors page.

HPAP

The Home Purchase Assistance Program offers deferred, interest-free gap financing for eligible first-time buyers. Award amounts, rules, and timelines are published by the District and updated periodically. Review the program overview on the HPAP page from DHCD.

Lender types to consider

Compare across lender types to find the best fit for pricing and service. Options include national banks, mortgage banks, credit unions, mortgage brokers, and community lenders. Different models mean different fee structures, underwriting timelines, and service approaches. See guidance on comparing lender types from Freddie Mac’s MyHome resource.

Lock policies and timelines

Ask each lender about rate lock length and fees, whether float-down options are available, and how long they typically take from application to clear-to-close in D.C. Confirm whether underwriting is done in-house and whether they are familiar with local appraisal standards and condo review requirements.

Your comparison checklist

Follow these steps for a clear, confident process.

1) Prepare before you shop

Have the six items lenders need to produce a Loan Estimate: name, income, Social Security number, property address, estimated property value, and desired loan amount. Using the same inputs with each lender helps ensure fair comparisons. The CFPB explains how to request and review multiple Loan Estimates.

2) Contact 3 to 5 lenders

Include a mix of lender types and request Loan Estimates on the same day because rates change daily. Freddie Mac recommends comparing across lender types for better odds of finding a strong offer. Reference: Freddie Mac’s lender shopping tips.

3) Compare the same items on every Loan Estimate

• Interest rate, and whether it is locked.
• APR, TIP, and “In 5 Years” cost.
• Box A, Origination charges, plus “Services you cannot shop for.”
• Cash to Close and prepaids.
• Any conditions, such as mortgage insurance or special underwriting requirements. See the CFPB APR explainer for how these affect total cost.

4) Ask targeted questions

• Are you the direct lender or a broker? Who will service my loan after closing?
• Which investor will back this loan type?
• How long is the rate lock? What is the fee to extend or float down?
• What is your typical application-to-close timeline in D.C.? Do you underwrite in-house?
• Have you closed DC Open Doors or HPAP loans recently? What does that timeline look like?
• Can you walk me through the largest line items in Box A and the services I cannot shop for? The CFPB’s Loan Estimate guide can help you frame these questions.

5) Verify and do final checks

• Confirm company and loan officer licensing in NMLS Consumer Access. Ask for the loan officer’s NMLS ID. Learn how to verify licensing through AARMR’s consumer resources.
• In D.C., mortgage entities are regulated by the Department of Insurance, Securities and Banking. DC rules and licensing frameworks are published in the District’s regulations.
• Review complaint trends in the CFPB database for the companies you are considering. You can access the database via the CFPB complaint database resource.
• If you want neutral help or you plan to use local assistance like HPAP, connect with a HUD-approved housing counselor. Find counseling resources on HUD’s programs page.

Red flags to watch for

• Hesitation to provide a Loan Estimate within three business days of application.
• Pressure to skip disclosures or to act before you can review the estimate.
• Large or unexplained fees, or “guaranteed” rates without a lock confirmation.
• Unverifiable licensing or reliance on nonbinding quotes instead of a formal Loan Estimate. See the CFPB explainer for why formal estimates matter.

Final thoughts

With a clear process, you can compare lenders with confidence and choose the right mix of rate, fees, and service for your D.C. purchase. If you are weighing DC Open Doors or HPAP, experience with those programs should be part of your decision. When you are ready, our team can help you coordinate timing, review Loan Estimates, and connect you with vetted local lenders that fit your goals.

If you want a second set of eyes or a warm introduction to trusted local lenders, reach out to Desmond McKenna. We are here to help you move forward with clarity and confidence.

FAQs

How many lenders should a D.C. buyer compare?

• Aim for at least three Loan Estimates, and request them on the same day for fair comparisons, as recommended by the CFPB.

How do I weigh lower rate vs higher fees?

• Compare APR, TIP, and the 5-year cost on the Loan Estimate. A lower rate with higher fees can win over a long hold, but a lower-fee option can be better if you will sell or refinance sooner. See the CFPB APR explainer.

How do I verify a D.C. mortgage lender?

• Confirm licensing in NMLS Consumer Access, check D.C. regulation via DISB, and review complaint patterns in the CFPB database. Start with AARMR’s NMLS consumer resources and the CFPB complaint database resource.

Can I use DC Open Doors or HPAP with a conventional loan?

• Many buyers pair DC Open Doors or HPAP with a conventional or FHA loan, subject to program rules and lender eligibility. Review current details on DC Open Doors and HPAP through DHCD.

What do lenders need to issue a Loan Estimate?

• Provide your name, income, Social Security number, property address, estimated property value, and desired loan amount so each lender can produce a comparable estimate. See the CFPB guidance.