At what point should you shop around for loans?

[Eddie Gonnella]

At what point should you shop around for loans? When you are getting pre-approved, or later when you are ready to put in an offer? 

I just spoke with one lender and might have them run my credit to get pre-approved. Is this the time to also have a few others do the same? Or should I wait until I'm closer to purchasing? I'm probably 2 months from purchasing. 

Thanks!

[Frank Wong]

Hi Eddie,

You want to do all the shopping right in the beginning during the pre-approval stage.  You don't want to find a house submit an offer and have it accepted and then start shopping.  It's too late at that point.  Once the contract has been accepted the time is ticking for the lender to do a complete underwriting of your loan and close it.  

Things to remember when you are shopping. I think its always best to use a local lender.  You need to be able to go into the office and speak to the manager if things are not going as planned.  Also good to be at the same work hours as you. 

The lowest rate is not always the best for a buyer.  You need to find out how long it will take a lender to close. 30 day is the norm in my area.  Who cares if a lender has 0.25% lower rate if they take 60 days to close.  Don't fall for that.  You also need to ask them how long it will take for the lender to appraise the house and give you loan contingency clearance. These are 2 important things you must know other than rate.  The better you screen your lender now will make it a smoother purchase when you are in contract.