Pre-Qualified By Multiple Lenders

**Wimbley** · 12-11-2009, 04:26 PM

My wife and I recently got pre-qualified directly through one of the big banks in the Wash DC area. Does it make sense to get multiple pre-qualifications in order to get the best rate available? Is this common practice, any pros and cons?

Thank you.

**PreviewOrangeCounty** · 12-11-2009, 06:53 PM

With a major bank under your belt, I would recommend talking to an experienced morgage broker who can shop all banks programs/rates.

Between the bank and 1 mortgage broker you should be all set.

You need to be careful about running your credit multiple times which most lenders will require for a pre-approval.

**Wimbley** · 12-14-2009, 09:51 PM

Thanks for the response Kevin. Did not realize that about a broker until recently. Good to know.

**Wimbley** · 01-03-2010, 08:24 PM

We have a ratified contract and are in the process of trying to get the best rate now. The broker who says they can shop for the best rate is about the same as the big bank's rates.

So far I have not seen any advantages one way or the other or is it all relative?

**BoiseRealEstateSoup** · 01-04-2010, 01:23 PM

Keep in mind that when you work with a bank, they'll more than likely be the ones servicing the loan.

Brokered loans are sold most of the time and sometimes get sold multiple times. It doesn't affect your rate or anything, but it can be a hassle to have to change where you send your payments.

Also, look for the garbage fees too, brokers are pretty darn good at squeezing in junk fees calling them admin fees etc. Banks will generally cost a bit less and waive the fees if asked.

One other consideration is that most banks have their own underwriting whereas lenders have to send your file off to another company for underwriting. This means they have little control over time frames and direct communication with the underwriters.

Honestly, from my standpoint, I wish all buyers would use a bank... but that comes from what serves me, not you!