Do I need to get pre-approved for a mortgage at more than one bank/financial Instution?

Our Realtor suggested we get pre-approved for a mortgage, so we did that last week. We can afford the houses we were looking at with no problem, and are approved for the next 120 days. At what point do I look around at other banks to maybe get a better deal? Before or after the offer is made? It looks like my credit union is going to offer a much better deal than the bank, so should I wait for a few weeks for us to make the offer, or should I just get approved at the credit union now?

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  • Anonymous
    1 decade ago
    Best Answer

    If you've already been approved then consider that your back up financing.

    Make your offer contingent upon your acquiring satisfactory financing terms.

    Contact a mortgage broker who can tell you if there are other lenders who can beat the bank. They have access to more banks and many more programs.

    Your credit union may indeed have the best offer but it doesnt hurt to check.. They should have given you a Good Faith Estimate in writing. Use that document and the credit scores the bank told you came on your credit report. You credit report does not need to be run again if you have your scores. You wont drop in score in that short a period of time. Bureaus expect you to shop.

    We would not run credit again and just work off what you have for the purposes of shopping your loan. When and if you decided to go with one of our banks, only then would a report have to be ordered in our companies name.

    Brokers generally have greater access to all of the banks and traditional lenders wholesale rates.

    Good Luck

    OBA™

    Source(s): Wholesale Mortgage Broker | OBA Certified http://aimwithfocus.com/mortgage_broker_vs_bank.ht...
  • 1 decade ago

    Be careful...if you start getting pre-approved all over the place they will be running your credit score left and right and that can negatively impact your credit score.

    Get your pre-approval and then use it at other banks. Let them see what you got or at least let them know what you got (if you show it to them that may reduce your negotiating power)

    If one bank has approved you at 7.5%, go to another and see if 7% is possible. Be up front with them on what you are doing. Its minimal work for them to see what they could do and they will want your buisness. Let them know your current credit score and have them draft you up an idea of what they could give you...if you like it and its competitive, then let them run the check and go with it. Just don't have it run 10 times.

    Its weird, they are just checking a score and it affects credit. You would think that they could have something in the system that just says "Hey, bank just checking things out."....rather is comes up as a red flag when it happens.

    Go figure and good luck.

    Source(s): Bought a house a few years ago....asked a lot of questions.
  • Anonymous
    1 decade ago

    Once you've been preapproved, you can check what the rates are doing on line without contacting any broker. Usually, your credit union will be a good enough place. Just check the conforming rates periodically prior to your closing and ask your credit union what their rate is on that day to get an idea if they are off or not. If they are in line with what the going rates are, don't change, as you already have established a comfort level with them. Most lenders and brokers will be within an eighth of a percent of each other, so you really just want to go with who you feel comfortable with.

    Congratulations on your approval and good luck with your search.

  • 1 decade ago

    Ideally, you should research interst rates offered by institutions. Start with applying with the one offering the lowest interest rates. If approves, you can stop. If rejected, then go to the next lowest, etc. till you get an approval. You are at no advantage being approved by multiple banks, since you wish to borrow the money from the bank offereing the lowest interest rate. Avoid applying with multiple institutions at one time (especially many applications) since you credit score might be adversely affected you too many credit applications.

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  • 1 decade ago

    I checked into alot of banks. Only problem is the more times they run your credit to approve you for this amount or that amount and this rate or that rate... your credit score is going to drop. So, i would try and find 3 good quotes if u don't like what you see wait about 60 days and try again. If you have the time.

  • 1 decade ago

    If you get approved at more than one place,the choice is yours.Being you have more than one option.Is your credit in good standing.Or do you believe the financial institution is trying to make even more money off you.The higher the loan the lower the APR.Be wise with the amount you borrow and do not sign any documents allowing the company to garnish your wages.Read and understand all penalties and be sure not to do that which violates the contract.Check to see whether your APR is fixed or is it variable.Remember the sooner you pay it off.The better off you will be,be sure your amount due monthly.Remains with in your budget.

  • debbie
    Lv 5
    1 decade ago

    I would wait to be honest and just see what the bank says because i am in a similar situation, We are currently in underwriting and it is taking forever... To be totally honest.

    The process does take awhile and be prepared to wait, sorry to say that but just trying to be honest

    If you go to your credit union, then your credit is already being checked and it could cause your deal to not be so great..

    Word of advise, take your time and you will get the best offer..

    Good Luck ..

    Deb :)

  • 1 decade ago

    if one bank approves the rest will too. qualifying for a mortgage has to do with credit rating and personal resources . if u have good credit and enough for a down payment u will get a mortgage.. the best ur credit the better ur mortgage terms...if ur credit is so so... ur mortgage could cost u a lot more.

  • 1 decade ago

    You can look now... your shopping around for a better rate...

    But one suggestion... do not apply for anyother credit while applying for a mortgage.

    Source(s): I am purchasing my 1st house!
  • 1 decade ago

    Go ahead and get a pre-approval from both of them, it saves time once you have your offer in if they already have your file.

    Source(s): mortgage broker
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