Pre approval Process

[Shiloh Lewis]

Hi all, I recently began my search for my first property. I have just completed an application for an FHA pre approval with Fairway Independent Mortgage Corporation which was recommended to me by my Real Estate Agent.

 My question is, should I also apply to other banks as well or should I do that prior to purchasing. I've also thought about going through quicken Loans as well which was recommended to me. I plan to refinance the property after the 1st year of ownership so I'm not sure how necessary it is to spend so long and running my credit getting the lowest rate now if I plan on refinancing in about a year. Once I refinance, I'd definitely search for the best possible rate, where I've heard that you should shop for at least 2 or 3 of the best rates that I can get. 

[Lawrence Dy]

Hi Shiloh, I wouldn't necessarily say you should "apply" to other banks, but I would recommend you at least consult with one or more strong lenders to compare rates, products, service, and performance prior to committing to that lender for your purchase. If you have a copy of your credit report/score and financials, many brokers/lenders can consult you preliminarily based on this info without actually running your credit. 

If you have a strong relationship with your agent and trust his referral, and you feel that lender is a strong lender, it may be in your best interest to just continue working with that lender. However, it still doesn't hurt to at least inform yourself about what other lenders/loan products/services are out there for you. 

And it's not always just about who can provide the best rate. Sometimes, the right lender for you is the one who can originate the loan at the lowest cost, provide credits, or close the deal the fastest, etc.  You'll find that some lenders can close deals much faster than others. 

Hope this helps!