Hands holding two clipboards comparing a 'Current Lender' checklist with a 'Shop Around' checklist next to cash and house keys.

Do I have to use my current lender, or should I shop around?

When you decide to purchase a new home or refinance your current one, you are under no legal or contractual obligation to stay with your current lender. In fact, while staying with a familiar institution can be convenient, shopping around is often the most effective way to secure the best possible deal in the 2026 market.

1. The Benefits of Shopping Around

The primary reason to look beyond your current lender is the potential for massive long-term savings.

Securing a Lower Interest Rate: Lenders often reserve their most competitive rates to attract new customers. Even a small difference, such as 0.25% to 0.5%, can save buyers and refinancers thousands of dollars in interest over the life of the loan.
Lower Closing Costs: Different lenders charge different fees for the same services. By comparing multiple offers, you can identify which lender has the lowest origination fees and closing costs.
Better Customer Service: If you’ve had a subpar experience with your current lender’s technology or support, switching gives you the chance to find a partner with better reviews and a more streamlined loan process.
Negotiating Power: When you have multiple written offers, you can often play lenders against each other. You might even find your current lender is willing to match a better offer from a competitor just to keep your business.

2. When Staying with Your Current Lender Makes Sense

Sticking with your original lender (often called a “product transfer” or “internal refinance”) does have a few distinct advantages:

Streamlined Application: Your current lender already has your payment history and much of your financial information on file. This can lead to less paperwork and a faster closing.
Existing Relationship Discounts: Some banks offer “loyalty discounts” or reduced fees for customers who hold multiple accounts (like checking, savings, or investments) with them.
Reduced Costs for Government Loans: If you currently have an FHA or VA loan, staying with your current lender for an FHA Streamline Refinance often requires no new appraisal and minimal documentation.

3. The “Shopping” Strategy for 2026

To find the best fit without hurting your credit score or wasting time, follow this three-step plan:

Request at Least Three Quotes: Research shows that getting just one additional quote can save an average of $1,500, while five quotes can save up to $3,000 over the life of the loan.
Compare on the Same Day: Because mortgage rates fluctuate daily, you should try to get your quotes on the same day to ensure an “apples-to-apples” comparison.
Keep it Within a 45-Day Window: Most credit scoring models treat multiple mortgage inquiries as a single event if they happen within a 45-day period, meaning your score won’t be penalized for each individual application.

Mortgage Shopping Checklist: How to Compare Offers

To ensure you are truly getting the best deal in 2026, you should gather at least three to five quotes. Since mortgage rates change daily, it is vital to collect all quotes on the same day for an accurate comparison.

Factor to Compare	Why It Matters
Loan Estimate (LE)	Request this standardized three-page document from every lender to compare costs line-by-line.
Interest Rate vs. APR	The Interest Rate is the cost to borrow the principal; the APR includes interest plus fees, providing a more complete picture of the actual cost.
Total Loan Costs (Section D)	Focus on Origination Charges (application, underwriting, etc.), as these are the fees most within the lender’s control and are often negotiable.
Break-Even Point	Refinancers should use our mortgage refinance calculator to determine how long it will take for monthly savings to cover your closing costs.

Questions to Ask Every Lender

“Can you provide a formal Loan Estimate?” This is the only way to verify the true cost of the loan.
“Will you waive or reduce any origination fees?” Don’t be afraid to negotiate; lenders may lower fees if you show them a better offer from a competitor.
“How long is the rate lock period?” Ensure the lock lasts long enough to cover your expected closing date.

The Bottom Line

Your current lender is a great place to start your search, but they shouldn’t be where it ends. Whether you’re ready to buy a new home or see how today’s market compares to your current loan, you can get a customized rate quote online in minutes.