You have plenty of lender options in Greensboro, but comparing them can feel like alphabet soup. Rate, APR, points, credits, and fees all affect your payment and cash to close. Add in local program options and timing, and it is easy to miss something important. In this guide, you’ll learn how to compare lenders on an apples-to-apples basis, what documents to request, and which local factors in Guilford County can influence your choice. Let’s dive in.
What to compare beyond the rate
Interest rate vs APR
The interest rate drives your monthly payment. APR includes the rate plus most lender fees and some prepaid costs to show the broader cost of financing. APR only works well when you compare the same loan type, term, and cost structure. If you plan to sell or refinance sooner, focus on both the monthly payment and how long you’ll keep the loan.
Points and lender fees
Discount points are prepaid interest paid at closing to lower your rate. Origination is the lender’s fee to create the loan. Some lenders bundle origination into points. Ask for the break-even period for any points so you know how long it takes for the lower payment to repay the upfront cost.
Third‑party fees and closing costs
Appraisal, credit report, title, settlement, and recording fees are common. Some lenders include or waive certain vendor charges. Ask which fees are paid to the lender versus outside companies, and whether you can shop for those services. That helps you line up quotes the same way.
Loan program and mortgage insurance
Conventional, FHA, VA, USDA, and specialized programs differ in down payment, mortgage insurance, and credit requirements. Compare the monthly cost of mortgage insurance and whether it can be removed later. For example, conventional private mortgage insurance can usually be canceled once loan-to-value thresholds are met, while FHA mortgage insurance is typically permanent for many borrowers.
Rate lock terms and float‑downs
A rate lock holds your rate for a set period like 30 or 45 days. Ask about lock fees, extension costs, and whether a one-time float‑down is available if rates drop. Get the lock in writing so there are no surprises.
Pre‑approval strength
A full, documented pre‑approval is stronger than a quick pre‑qualification. Ask whether the lender pulled credit and verified your income and assets. In competitive Greensboro offers, a stronger pre‑approval can help your contract stand out.
Service and reputation
Responsiveness and on‑time closings matter. Some Greensboro sellers and listing agents prefer lenders with a track record of closing on schedule. Ask about local underwriting, average turn times, and whether the lender will service your loan after closing or transfer it to another company.
Use key documents to compare
The Loan Estimate
By law, lenders must provide a Loan Estimate within three business days of a completed application. The Loan Estimate shows your rate, APR, monthly payment, lender fees, and estimated cash to close. Review how to read one using the Consumer Financial Protection Bureau’s Loan Estimate explainer to understand each section. For a fair comparison, request Loan Estimates based on the same sales price, down payment, program, points, and credits across all lenders.
Link: Learn how to read a Loan Estimate with the CFPB’s Loan Estimate guide: CFPB Loan Estimate overview.
The Closing Disclosure
You receive the Closing Disclosure at least three business days before closing. It mirrors the Loan Estimate but shows final costs. Ask about any large differences so you understand what changed and why. For a primer, see the CFPB’s explanation: CFPB Closing Disclosure overview.
Pre‑approval letter
Confirm whether your pre‑approval is fully documented or based on self‑reported info. Ask if an underwriter has reviewed your income and assets and what conditions remain. Stronger letters offer more confidence to sellers.
Rate lock confirmation
Get written confirmation of your rate, the lock period, any lock fees, extension costs, and float‑down rules. Keep this document handy if timelines shift.
Greensboro and Guilford County factors
Conforming loan limits
Whether your loan is conforming or jumbo can affect pricing and available options. Check current limits for Guilford County on the Federal Housing Finance Agency’s site: FHFA conforming loan limits tool. Ask each lender which programs fit your price point and down payment.
State and local assistance
North Carolina Housing Finance Agency programs may offer down payment assistance or favorable terms for eligible buyers. Ask lenders if they participate in these programs and can meet documentation requirements. Explore options at the North Carolina Housing Finance Agency.
Lender types common in Greensboro
- Local banks and credit unions: often provide localized underwriting and strong communication.
- Mortgage brokers: can shop several wholesale lenders quickly, which helps if you need flexibility.
- National direct lenders: may offer strong pricing at scale, but servicing may transfer after closing.
Closing timelines
Local title workloads and county recording practices can affect timing. If your purchase needs a quick close, confirm the lender’s typical underwriting timeline and whether they can put date commitments in writing.
License checks and complaints
Verify lender and loan officer credentials and complaint history on NMLS Consumer Access. You can also contact the North Carolina state regulator for guidance on complaints.
How to shop step by step
- Gather your basics: credit, income, assets, target price, down payment, and property type.
- Decide which loan programs to compare, like conventional, FHA, VA, or NCHFA.
- Contact 3 to 5 lenders, including a bank or credit union, a broker, and a direct lender. Ask each for a Loan Estimate using the same numbers and program.
- Request a full-document pre‑approval if you plan to make an offer soon. Confirm the underwriting scope.
- Compare Loan Estimates side by side. List out the rate, APR, points, fees, mortgage insurance, and cash to close. Ask follow‑ups to clarify differences.
- Choose a lender based on cost, service, and timing. Lock your rate and get written lock terms.
- Stay responsive with documents and questions to avoid delays.
Pro tip: Rates move daily. For context on market trends, check the Freddie Mac Primary Mortgage Market Survey the same day you collect quotes.
Apples‑to‑apples checklist
- Lender name and NMLS ID, verified on NMLS Consumer Access
- Loan program and term, fixed or ARM
- Interest rate and whether it is locked
- APR from the Loan Estimate
- Points and origination fees in dollars and percent
- Lender credits and how they apply
- Third‑party fees: appraisal, title, recording, survey, and credit report
- Prepaid items and escrow requirements
- Mortgage insurance type and monthly amount, plus cancellation rules
- Estimated total closing costs and cash to close
- Rate lock length, extension fees, and float‑down terms
- Pre‑approval strength and remaining conditions
- Estimated days from application to clear to close
- Whether the lender will service your loan after closing
- Local closing experience in Guilford County and client references
- Reviews and complaint record
Smart questions to ask
- Is the quoted rate locked? If not, what is the lock policy and fee?
- How do points or lender credits change the rate and APR? Show me two scenarios.
- Do you offer a float‑down if rates drop? What are the rules and costs?
- How long does underwriting typically take for this program and file type?
- Will you service my loan after closing, or will servicing transfer? How will I be notified?
- Do you participate in NCHFA or other assistance programs, and can you handle those requirements?
- If the seller needs a 21 to 30 day close, can you commit to that timeline in writing?
- What conditions could change my Loan Estimate or pre‑approval?
When to loop in your agent
Ask your agent for lender introductions when you need a quick closing in Guilford County, want lenders experienced with NCHFA, FHA, or VA, or have a more complex profile such as self‑employment. Your agent can also point you to lenders recognized by local sellers for on‑time closings. A good introduction saves time and often reduces stress.
Final thoughts
The best lender for you balances price, program fit, service, and timing. If you compare the same program, down payment, and points across multiple Loan Estimates, you’ll see the true differences. Add in strong pre‑approval and clear lock terms, and you’ll be set up for a smooth Greensboro closing.
Have questions or want curated lender introductions for Guilford County? Reach out to Marcus Lane to book a free consultation.
FAQs
What is APR and how is it different from the interest rate?
- The interest rate drives your monthly payment, while APR includes the rate plus many fees to show the broader cost. Use APR to compare similar loans with the same term and cost structure.
How many Greensboro lenders should I get quotes from?
- Aim for 3 to 5, including a bank or credit union, a mortgage broker, and a direct lender, so you can compare pricing and service.
When should I lock my mortgage rate in Guilford County?
- Lock after you choose a lender and know your closing timeline. Get the lock period, extension fee, and any float‑down option in writing.
How can I verify a lender’s license and complaint history?
- Search the company and individual loan officer on NMLS Consumer Access to confirm licensing and view history.
Where can I check current conforming loan limits for Guilford County?
- Use the FHFA conforming loan limits tool to confirm current thresholds that define conforming versus jumbo.
Are there North Carolina down payment assistance programs I should ask about?
- Yes. Ask lenders if they participate in the North Carolina Housing Finance Agency’s offerings and review options on the NCHFA homebuyer page.
Do advertised online rates reflect what I will pay?
- They are starting points. Your actual rate depends on credit, down payment, property type, and loan product. Always request a Loan Estimate on the same day for true comparison.
What is a reasonable timeline to close in Greensboro?
- Many purchases close in 30 to 45 days, and faster timelines may be possible with responsive documentation and a lender experienced in Guilford County closings.
