Buyers shop rates. I get it — the rate is the thing you can compare across lenders in about ten seconds. But rate is only part of the story. The fees attached to a loan can swing the total cost by thousands, and not every lender explains them the same way.
Origination and discount points
Origination is what the lender charges to make the loan. Discount points are what you pay to buy down your rate. They both look like percentages of the loan, but they do different things — and they're the first place to check when one lender's rate looks dramatically better than another's.
Third-party fees
Appraisal, credit report, title, settlement, recording fees. Most of these go to vendors, not the lender — which is why they don't vary much between loan officers. But they're real costs, and some shoppers forget they exist until they see the final numbers at the closing table.
Prepaids
This is the category that surprises people most. Prepaids are things like initial escrow deposits, prepaid interest from closing to the end of the month, and the first year of homeowners insurance. They feel like fees, but they're really advance payments on things you'd be paying anyway. Still, they hit your cash-to-close number hard.
What to compare
Ask every lender for a full Loan Estimate, not just a rate quote. Compare the "A" section (origination), the APR (which includes most fees baked in), and the total cash to close. That's the apples-to-apples comparison — and it's the only one worth making.