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I am a first time home buyer and would like to shop around for the best deals/rates. I’d like to get pre-approved for a loan. I’d also like to shop around for the best terms, interest rates, etc. I’d also like to make sure I am pre-approved for the right amount (for the house that I want and can afford). Is it a good idea to apply for pre-approval to more than one lender so I can pick the best offer? I know it might be negative for a lender to see my credit report be pulled from different lenders. Would they see that as someone looking for the best loan or as someone looking to over extend their credit? Would they be able to tell the credit checks were pulled for a mortgage application? I’ll probably have more questions, but I guess I should wait for the answer to this one before jumping the gun. Thanks in advance.

11 Thoughts on Is it OK to apply to more than one lender for a mortgage so I can accept the best offer?
  1. Reply
    ak
    September 13, 2012 at 12:42 pm

    I think it makes sense to shop around, sure!

  2. Reply
    nickelrustler
    September 13, 2012 at 12:52 pm

    You should do this. It is recc’d and the credit scores will allow this shopping around process for 30 days without adverse consequences. I would shop till you find the best fit for you.

  3. Reply
    july
    September 13, 2012 at 1:00 pm

    get a mortgage broker.

    it is a mortgage broker’s job to search for a deal for you and the broker is paid by the mortgage company.

  4. Reply
    Azhat1
    September 13, 2012 at 1:16 pm

    It is not only ok, but recommended. Be sure to apply for them within a 14 day period of the first one, however, in order to avoid multiple hits on your credit report. A lender will see that the multiple hits were from rate shopping and on a mortgage (done within 14 days) won’t affect you much, if any at all b/c it’s not a revolving line of credit (credit card). The 30-day rule is untrue – stick to 14 days and you will be fine.

    Shop rates with banks, mortgage brokers and private lenders and go with the one with the best rates AND terms. BE CAREFUL of shady lenders – only use reputable ones. I would suggest contacting a local Realtor to steer you in the right direction.

    A mortgage broker is NOT always paid by the lender, either. Be careful with this b/c you often times will end up paying a brokerage fee around 1-2% of the loan.

    Again, contact a local, reputable Realtor and let them help you through it with professional guidance.

    I also recommend NEVER using an online company unless they have a local branch that you can visit when things go to hell in a handbasket. If you cant walk into someones office and demand an explanation for something, dont deal with them. Your hands are tied when it comes to online companies.

  5. Reply
    lotusbrenda
    September 13, 2012 at 1:54 pm

    You credit report is constantly being checked by companies you currently do business with and companies that are considering you as a prospect. The company who is making the request is documented to your credit file.

    I recommend you try eLoan.com. You make one application, and multiple lenders send you their “best deal” offer as they are competing with other lenders.

  6. Reply
    SuzyBelle04
    September 13, 2012 at 2:20 pm

    uh yeah, that is the whole idea—apply to more than one so you can get the lowest rate! i am so happy for you because it has been one of my dreams to own a house and my fiance and i are trying to get one, as soon as he cuts the f*cking apron strings!

  7. Reply
    fairyprincessjz
    September 13, 2012 at 2:45 pm

    that’s good, b/c we all know that when someone checks our credit, it goes down a little. So when you do it like this,say w/in a few (3) days of each other, then it’s only counted as being looked at once instead of a lot. make any sense? A mortgage lady told me that once. So…shop around, and get the best deal you can. after all, you’re the one that’s going to be paying for that house, not them. 🙂

  8. Reply
    byonjello
    September 13, 2012 at 2:49 pm

    Don’t let anyone pull your credit report until you have made your choice. You can get your score yourself then let the lender know the number. You can call around yourself and then compare rates on the same type of loan. Go for a simple straight forward loan. No variable rate, balloon payments, PMI etc. Talk to as many lenders as possible and write down everything each one says in a notebook. I have found e-trade to be very forthcoming and direct with good rates. Major banks can have decent loans too. Beware of companies who advertise on the radio. Trust no one until you do your research. Find out what the loan will cost as if you were going to write them a check for all the fees instead of letting them roll it into the loan. You’ll be very surprised at how many don’t want to answer that one. Also make sure there is no prepayment penalty. Some of the big advertisers on the radio charge enormous prepayment fees (if you need to sell or refinance) and are very sneaky about this. It is very easy to get financed. Make sure you can easily afford the payment. Most lenders will tell you you can afford a payment much higher than what you actually can while still eating. Good luck- arm yourself with knowledge and you’ll do just fine!

    You do not want to apply for many loans!!! By getting your own score you can use this info to shop your loan around. Sometimes realtors choose lenders because the lenders bring donuts to their offices. Call every mortgage company you can on your own. When you have narrowed it down then ask around. Find out who other people you know have their loans through and why they chose them. Also by getting your credit report yourself you have time to check for and fix any errors that might be on your report.

  9. Reply
    Douglas D
    September 13, 2012 at 3:44 pm

    As a homeowner, & former applicant of several past mortgages, I highly recommend that you shop around for the best lending rate. Of course, & the 1st one that tries to intimidate you out of that option should be the 1st one that you cross of your list of potential lenders.
    Getting a pre-approved loan is a great idea. It gives you a solid idea of the kind of house that you can afford to buy.
    Of course you won’t have several loans lined up all at once. You will have several quotes in hand after you have shopped around, & once you decide, you will sign up for one loan, & one loan only once you have found the house you are going to buy.
    You won’t actually get a loan until you can show your lender an offer to purchase.
    As long as you do the final purchasing transactions through your real estate lawyer, no lending institution will perceive you as trying to over extend your credit.

    You have used some very sound thinking in your planning to buy a house so far, so keep up the good work.

  10. Reply
    John G
    September 13, 2012 at 4:22 pm

    As everyone has written it doesn’t hurt your credit rating to shop around for a mortgage to help purchase your new home. You are also correct that it is important to be pre-approved. It clarifies your price range and lets all realtors involved know that you are serious about your offer.

    I am a mortgage broker and am licensed in 50 states. I deal with first time home buyers all the time and can help you throughout this big decision. Feel free to contact me at any times with any questions.

    John Gonzalez
    (818) 645-0585
    [email protected]

  11. Reply
    madd_bm
    September 13, 2012 at 4:49 pm

    Yes, most lenders will know what the credit checks were pulled for. The credit report will show the agency that pulled it and the lender will most likely recognize the agency by name and assume what is happening. you will lose points, so choose your lenders carefully. the points come back after a short time (I think its 30 days…not sure), so you might spread it out. say over several weeks.
    What you could do is get a copy of your credit score before you go in, that way you will know exactly what you have to offer. Don’t let them try and swindle you into taking higher interest rates because of lost points due to credit checks. Regardless of what they tell you…until you sign the paper, you have all the balls in your court. It is very wise to shop around. You know what you have and what you are capable of paying. Don’t settle for less than the best deal.

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