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Is it a good idea to be pre-approved by several lenders?

Or does this hurt my credit? I want to be sure that I am receiving the best possible rate, but I don't want to have the inquiries affect my credit adversely. I am looking to buy in the next 3-4 months. by christakay1406 from Boise, Idaho. Jul 9th 2015 Reply


Linda Miller (Linda Miller)
#2 ranked lender in Utah - 562 contributions

If you have your credit pulled by several mortgage within 30 days it will not hurt your score. It is treated like one pull with the idea that you are shopping. Make sure you get the rate from different lenders on the same day at about the same time. Rates change daily and lately we have been getting changes during the day. Today we had two negative rate changes (slightly higher each time). Also, getting the lowest rate is not always the best loan for you. For example: If you are a first time home buyer You might want to look at a 3% My Community loan and an FHA 3.5% down. If you have excellent credit (740+) the My Community loan at a higher rate might be a better loan. If has a lower down payment and lower mortgage insurance costs. One thing I would warn you about. Too many options can get confusing. I would only call a couple of companies - and would stay away from banks. They generally have higher rates and service is not as good as with a direct lender. Everyone's situation is different. Once you talk with a couple of loan officers go with the one who answers the phone when you call and who listens to you. I am one of those loan officers. Feel free to call me at any time. 801.550.1222. I am in Salt Lake City but am licensed in Idaho because I love visiting there. Best of luck... Linda Miller, 801.550.1222, linda@lindamillergroup.com.

Jul 9th 2015
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Mark Rodeghiero (markr@3rates.com)
#33 ranked lender in Idaho - 14 contributions

Great questions always lead to more questions. Is rate the real concern or is making sure that you are qualified for a mortgage ? Shopping can be done most effectively once you have a property and are are essentially ready to go. If your credit is challenged or if you are given the indiction that you are on the fence for qualifying, then approaching another lender for an opinion on qualifying is probably a good idea. 3-4 months out won't get you a "real" quote. It is too easy to get quoted something that won't be available even a week from now. If you were my brother/sister, I would tell you to get pre-qualified, find a home and make an offer with the prequal, then present your scenario for shopping. I think you will find rates will be in a very tight pattern. The differences will be experience, service and the ability to reach your loan officer after hours or on a weekend if needed. If you have a challenging situation - make sure to realize the priority is finding the experienced loan officer. Rate is only good if you close. - Hope that helps - call if you have any questions - I'm down the street in Eagle, ID - 208-473-2925

Jul 9th 2015
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,802 contributions

I think your focus is on the wrong thing.. You will get a slightly lower rate with a broker than using a bank or credit union, but your focus should not be on the lowest rate.. you should focus on finding the right "Person" to do your loan.. regardless of the company you use, you will ultimately be dealing with just one or two people.. you should be sure your direct contact with the company you choose is competent, experienced, efficient, and a good communicator with timely responses.. Like the ole saying goes.. the lowest price isn't necessarily the lowest cost. What good is a lower rate if the lender takes 2 months to close a loan and they continually ask you for more and more paperwork? You could have spent over $1000 on an appraisal, home inspection, septic and/or well inspections, as well as pest inspection.. but if your lender doesn't close on time, the seller could cancel the deal and your out all that money.. if you look for the cheapest rate, you'll get the cheapest service.. So my advise,,, interview the person and the process not the rate. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jul 9th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,454 contributions

My personal opinion is that you should talk to two or three lender, but that you should only get fully pre-approved with one. That one person should be the one with the most experience, and the one that made you feel most comfortable that they are knowledgable, and have your best interest in mind. Not the guy simply because you have a checking account at that bank, or because they run advertising all day, everyday. IT ISN"T ABOUT RATES! We all have the same rates! A great example is just today. I spoke with a lady who is "pre-approved" with a big advertiser who is "Quick In Their Loans"... get it? The other Loan Officer is clearly a rookie, and has made numerous erroneous statement to this person. I used the Nationwide Mortgage and Licensing Website to look him up. He has been a Loan Officer for 6 months. I've been one for 24-years. Choose who you want, but I am not entrusting my largest financial transaction to just anyone. For loans in MN, WI, and SD - visit http://StPaul-Mortgage.com

Jul 13th 2015
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