One of the first steps in the homebuying process is gaining preapproval for a mortgage loan. This gives you a realistic idea of the home prices that you can afford and allows you to make a strong offer when you do find the right house. While there are a lot of factors that impact your loan approval and the interest rates that lenders will offer, there are a few steps you can take to make sure that you’re getting the best home loan and mortgage rate.

Don’t just look at the rates online

Most mortgage lenders list their current average rate on their website. But the key word here is average. This number does not reflect each borrower’s current financial situation, so you can’t know if that is the exact rate that you would get approved for if you applied to that lender. To know what rate you would get, you need to go through the preapproval application process. Lenders will look at your debts, assets, and income to determine what you can afford and offer a loan amount and interest rate that reflects your financial situation. To know which lenders to apply to, talk with your real estate agent, look at the loan types that lenders offer, and consider expanding your search to different banks, credit unions, and online lenders.

Apply to multiple lenders

Once you’re ready to start the preapproval application process, you’ll want to apply for loans through multiple lenders. It’s recommended that you apply to three to five different lenders to save the most money. According to Freddie Mac, getting one additional rate quote could save an average of $600 annually, with the number rising to $1,200 when comparing four or more lender options. These savings may vary since they are dependent upon the price of the home and the current average interest rate, but they prove it is worth shopping around no matter the economic climate.

As a note, lenders do a hard credit pull when you apply for a loan, which can lower your credit score. However, when you apply for multiple lenders within a fifteen-to-thirty-day period, they’ll count as one single inquiry, so your score shouldn’t be dinged multiple times.

Compare loan estimates

After applying for a loan with multiple lenders, you’ll receive loan estimates from those lenders. This document will list the loan amount, interest rate, closing costs, lenders fees, and other important factors that will help you see exactly what they’re offering you as the borrower. You can compare rates and payments across the lenders to ultimately determine which one works the best for you. This is a good opportunity to ask the lenders to clarify anything that you’re uncertain of since it is a big decision that you don’t want to make lightly.

While it might take a little time to find the best mortgage loan and rate for you, weighing your options can help you save thousands of dollars on your loan.