Another lender can beat your rate

You mention to a lender that another lender quoted you a competitive rate. Instead of simply providing their best offer, the lender probes for competitor information.

But, here's what's really happening...

Now that you understand the tactic, let's look at the three most common angles lenders use to probe for competitor information.

➡ Three Ways Lenders Probe for Competitor Information

Angle 1: Direct Comparison Request

Lender says: "What rate did they quote you? I want to make sure we're comparing apples to apples."

Most people respond: "The other lender quoted me 6.5% with $3,000 in closing costs."

Don't do that. This lender is framing their question as helpful comparison assistance, but they're actually extracting your best offer before revealing their own pricing. Once they know your benchmark (6.5% with $3,000 in costs), they'll offer just slightly better (6.49% with $2,900 in costs)—keeping the margin they could have given you. By revealing your hand first, you've eliminated competitive pressure and ensured you'll only get marginally better than your current best.

Angle 2: Match Promise

Lender says: "I can match any written offer you have. Just show me what the other lender quoted you, and I'll beat it."

Most people respond: "Here's the Loan Estimate from the other lender. Can you beat it?"

Don't do that. This lender is promising flexibility while avoiding competitive risk. By showing them your best offer, you've turned a competitive auction into a price-matching exercise where they set the floor. A lender who promises to match anything is admitting they have pricing flexibility—so they should be competing with their best terms first, not waiting to see what minimum offer wins your business.

Angle 3: Competitive Positioning

Lender says: "I want to make sure we're comparing the same loan terms—same rate type, same points, same fees. What exactly did they quote you so I can give you an accurate comparison?"

Most people respond: "They quoted me a 30-year fixed at 6.5% with 0.5 points and $3,000 in fees."

Don't do that. This lender is using "accuracy" and "fair comparison" as justification to extract detailed competitor pricing. While comparing similar terms DOES matter, you can request that all lenders quote the same scenario (30-year fixed, 20% down, $400K loan) without revealing what others have offered. By disclosing specific competitor pricing, you've given this lender the exact benchmark they need to price minimally better.

The Pattern

Notice that in all three scenarios, the lender successfully extracted your competitor pricing before revealing their own best offer. Keep your other quotes private until you've collected written Loan Estimates from all lenders.

➡ What You Should Say Instead

Regardless of which intelligence probe angle the lender uses, your response remains the same:

I appreciate that you want to be competitive, but I'd prefer to get written Loan Estimates from all lenders first, then compare them. Can you provide me with a written Loan Estimate that includes the interest rate, monthly payment, and all closing costs?

Here's why this response works for all three angles:

• For Angle 1 (Direct Comparison Request): Redirects from verbal comparison to written documentation
• For Angle 2 (Match Promise): Demands proactive pricing instead of reactive matching
• For Angle 3 (Competitive Positioning): Requests written quotes without revealing competitor benchmarks

The script doesn't refuse to share information later—it simply establishes that you'll compare written offers first, before revealing anything.

➡ Key Takeaway

Keep your other quotes private until you've collected written Loan Estimates from all lenders. Let them compete on their own merits, not against known benchmarks.