I am starting out but have questions

[Emily Capozzi]

I have started looking at properties but am wondering how a loan works if i am looking at multiple properties?

[Reid Chauvin]

@Emily Capozzi the loan process does not officially begin until you are under contract to buy a property, but you do generally want to engage with a lender before you start looking at properties so you can get an idea of what priced home you can qualify for and what the cost of a loan might look like at various price ranges. This is often referred to as the prequalification or preapproval process, and the lender can provide you with a letter verifying your eligibility for financing so you can include it with your offer to the seller.

As part of the preapproval process, the lender should review your credit, assets and employment/income to verify your eligibility. They will also estimate the monthly and upfront costs of a loan for you to buy a property at a given price range in a specific area. Basically, they are ensuring that you have enough income to support the monthly debt you will be taking on, and enough money in the bank to cover the upfront costs of the purchase. 

If you are shopping for different property types (condo, single family, duplex), then you should let the lender know as those various property types vary a bit in monthly and upfront costs. If you are shopping in different localities then you should let the lender know that as well, as property taxes and insurance costs may vary. 

Hope this helps!