Profile picture for georgehobart

Pre-Approval

Is it a good idea to shop for multiple pre-approvals?  I see the down side being credit score is obtained multiple times.  Once a pre-approval is given and house found, do I have to get a mortgage with the broker that gave the pre-approval company or can I shop around for rates/mortgage?  Any feedback appreciated!  Thanks!!
  • August 04 2009 - Baltimore
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Answers (7)

Profile picture for AndreaSmolin
You can always shop around for rates after you get a pre-approval. Here's a link to our
Zillow's new pre-approval product
  • February 20 2014
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I look at this a bit different. Find a mortgage pro you can trust. Ask for references and testimonials. It is not about rate as so many will tell you here.

Will the loan officer you choose call and update you if an issue pops up? 

Does the loan officer you choose answer their phone and emails on weekends when you have time to talk?

Does the loan officer work for a company with a solid track record?

Does the loan officer have a designated processor and/or underwriter?

go find a quality loan pro and the rate will be there.... 

  • May 24 2010
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The time to shop is before you request a pre-approval. You will have an opportunity to compare as many lender rates as you choose, and talk with those that you narrow your search to. If the lender you select is competitive now it is likely they will have same better rates when you are ready to lock in after a purchase.
You should not use a lenders approval letter unless you plan on using that lender. Lenders may vary on their approval conditions, and because one lender pre approves you doesn't mean all lenders have same approval criteria.
  • May 24 2010
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Profile picture for Brian G. Allen
The shopping should stop once you selected a lender to provide a pre-approval a trust should be developed so that you receive the what you have agreed to if the trust is broken then locate another. 
  • May 22 2010
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What would you be shopping around for? Rate? Fees? Certainly you can ask a lender to give you  a good faith estimate based upon the fico score and scenario you give them. Then hold them to the fees quoted. This will allow you to get a feel for their charges. Some lLoan Officers will assist you in getting  you lower Title company fees too. Other lenders are just trying to push you into using their Title company to get a referral fee ( aka kickback)

But don't let everyone pull your credit. Allow one broker that you feel most comfortable with pull a trimerge report and ask them for a copy ( even if you have to pay for it). The go get some quotes)
  • August 05 2009
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No it is not a good idea to get multiple pre-approvals, because each time that company has to pull your credit, and too many credit inquiries are not good for your credit score.  You do not have any obligation to go witht the mortgage company you have gotten a pre-approval with, however, that company has incurred time and expense of a credit report invested already, so it is a good practice to at least give that company a chance to compete for your loan.
  • August 04 2009
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You can shop around afterwards! Get your pre-approval -- just make sure to give that mortgage company an opportunity to compete for your business when the time comes. There is no obligation to use that company if they give you an approval and you definitely don't want your credit report pulled more times than necessary.
Please let me know if I can be of further service.
Sincerely,
Marney Kirk
Keller Williams Excellence Realty
  • August 04 2009
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