When you’re shopping for a home, it’s totally normal to start online. You browse listings, check payment estimates, and sometimes you’ll get nudged to “get pre-approved” through the same platform you’re already using.
The convenience is real.
But convenience does not always equal the best deal.
A recent analysis of national mortgage data found that borrowers who chose a large online, “built-in” lender option often paid more than similar borrowers who used other lenders. In many cases, the difference wasn’t just a tiny bump, it added up to thousands of dollars over time. Even more concerning, the gap appeared to grow over the last few years, meaning the pricing became less competitive as time went on.
That’s a big deal, especially in a market where every dollar of payment matters.
Here’s the simple issue with many big online lenders (including Zillow Home Loans):
They are still just one lender.
Even if the experience feels like a “marketplace,” the mortgage side usually isn’t. You’re getting one set of rates, one fee structure, and one approval process.
And when you only check one option, you never really know if the deal is great, average, or quietly overpriced.
Less competition: If no one is competing for your loan, pricing pressure goes away.
Higher overhead: Big consumer brands spend heavily on advertising and systems. Those costs can show up in rates and fees.
Standardized approach: “One size fits all” processes sometimes miss opportunities to structure the loan in your favor.
Referral ecosystems: Some platforms are built to keep everything “in-house,” which can create a strong push toward their own lending channel.
Most people don’t realize how quickly small changes add up.
Even a slightly higher rate or higher APR can mean:
A higher monthly payment
More interest paid over the life of the loan
A worse break-even if you refinance later
Less buying power when you’re trying to qualify
And it isn’t just conventional loans. The same trend showed up in government-backed financing at times too.
Bottom line: you don’t need to get ripped off to overpay.
Overpaying can happen quietly when you don’t compare.
This is where working with a mortgage broker makes a huge difference.
Instead of being locked into one lender’s pricing, a broker can shop your loan across multiple wholesale lenders and find the best combination of:
Rate
Closing costs
Turn time
Underwriting flexibility
Program fit (especially for unique situations)
You get a real comparison, not just one quote
We can pivot fast if rates move or underwriting gets tough
We can structure offers smarter, using tools like:
lender credits vs points
seller concessions
temporary buydowns (like a 2-1)
jumbo strategies
“buy before you sell” options
And the biggest advantage of all?
Buying a home is not just a math equation. It’s timing, strategy, and execution.
A broker’s job is to:
help you win the house
protect your numbers
prevent last-minute surprises
close on time
That’s hard to get when your loan is one of 200 files sitting in a national queue.
You can still use Zillow for what it does best: finding homes.
But when it comes to financing, the smartest move is simple:
Even better, work with someone who can compare multiple lenders at once.
If you want to keep it apples-to-apples, here’s what to ask for:
the same loan type
same down payment
same credit assumptions
same lock period
and the full breakdown of lender fees and credits
If the online lender really is best, great. You’ll know.
But if it’s not, you just saved yourself real money.
I’m not here to “sell you a rate.” I’m here to build a plan that fits your goals and keeps you protected.
That means:
clear numbers
honest trade-offs
options you can actually choose from
and a smooth process from pre-approval to closing
If you’re buying in Colorado and want a second opinion (or want to compare against Zillow Home Loans), I’m happy to run the numbers and show you the difference side-by-side.
No pressure. Just clarity.
Milestone Home Mortgage LLC NMLS #2588937. Michael Shotnik NMLS: 218281, CO License: 100017466. Not licensed in Alaska or New York. To check license status of mortgage loan originator, visit D.O.R.A. and NMLS consumer access.
