How to compare lending institutions?

Question

2 Questions about loan applications !

1. I understand that I should compare numerous lending institutions and agents. Does that mean I fill out all their full credit applications (not just the short pre-qualification application) and compare the numbers they come back to me with? In general, how many of these applications should I be filling out. I have 4 lending institutions that somehow fell into my pocket...Do I proceed with an application on all of them? More?

With this many lending applications, my co-borrowers are concerned that we are throwing our important information everywhere...Is there truth in this concern? Or not?

2. A  lot of articles say to avoid bad mortgage lenders. But how can I tell what is a good or bad lender? What happens if you are dealing with a bad mortgage lender (other than you are getting a bad deal?)

Thank you!

Francesca S. · Answer

Thanks for your advice @Darren Eady

I will be following your recommendation.

Darren Eady · Answer

It's a lot of time for everyone to submit a full application with all three.  I would go with your parent's recommendation first and with your close real estate friend.  Comparing these two should give you the rates and fees you'll want to compare.

Francesca S. · Answer

Thanks @Darren Eady. I have three potential lenders. One is recommended from a close real estate agent friend. Another is one my parents have worked with before. And another has been recommended by a fellow BP members.

Would I submit applications for all three?

Thanks!

Darren Eady · Answer

Look for a mortgage professional from a referral from a friend or co-worker that has been in the industry for some time.  Those who work solely by referral will typically be the best people to work with as the only way they get new business is by doing a great job for their clients.