Should I get Rates by more than 1 Mortgage Lender?

Question

I am buying a rental house. My agent referred me to 2 lenders. These lenders will be checking rates from many different sources.

-Is it rude to have 2 different mortgage lenders check rates to see what they come up with?
-A negative is that I assume they both need a hard credit pull which is not good for credit. Any other positives or negatives I should consider?

Robin Simon · Answer

No, nothing wrong at all with getting rates and quotes from 2 lenders (in fact you should talk to more than 2).  Also, for real estate mortgage lenders, any hard pull done in a 30-day period won't penalize you if its all reputable mortgage lenders running it there, so no need to worry about that.

No negatives to worry about, but just advice to be weary if one lender comes in with much better terms than the others, its a very competitive industry so if that happens its likely a red flag that something's not 100% on the ball

Sean Ross · Answer

Hi Jennifer,Multiple loan-related inquiries made within a short period of time are either entirely ignored or treated as a single search for credit, thus protecting your credit scores.

Justin Moy · Answer

If they are 2 brokers then no, I wouldn't say it is. It's possible they have different specialties and have different networks and partnerships with different banks. I would just be upfront with both that you have someone else checking as well

Dave Skow · Answer

1) its  fine to  ask  multiple  lenders   questions and for  quotes  2)  if you do this - call them  on the same day and time and  use the  exact  same  paramters ...this way you will be able to  compare similar  scenarios   3) make a  decsion who  you want to work  with and  get  pre  approved  well before you  begin actively looking at  homes   4)  once you have  an offer accepted - ask your lender  for  current  quotes  ( as these will be  more accurate for  what you will need) -  you can  check  with other lenders at this point again too  5)  make a  decision to  lock rate and  proceed  with the loan and closing  6)  lenders  dont need to do a hard pull  to  give you  ballpark  quotes  based on your  parameters ..they will need to pull a  real credit report once you decide to get the pre approval underway

Erik Estrada · Answer

I would suggest you look into interviewing each lender instead. Rates and costs aside, would you rather work with someone inexperinced or someone that's on it? Cheating out can cost you more especially if they don't disclose all costs that may come up.

Should I get Rates by more than 1 Mortgage Lender?

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