Can you have preapproval with multiple lenders at the same time?

[Eileen Wang]

Hello,

I’m new to out of state investing. I’m seeking advice here if I can have preapproval with local lender and national lender at the same time. Will it impact my credit scores or the final approval amount? Do you usually go with the recommended national lender from the turnkey company? Usually how do you go through the process of selecting the one you would like to work with? Any other tips you would like to share? Thank you very much!

[Daniel Hennek]

Multiple mortgage inquiries within 30 days count as the same inquiry as far as credit scores go so you don't have to worry about hurting your credit by shopping around.  It's purposely set up that way to NOT penalize you for shopping around.

The difference between local lenders and national is generally not small.  A local lender like a small broker can save people up to 2% in fees vs a large national outlet.  That's not to say that all small companies will do the same, but in general you'll find better deals at small places.  Specifically, a local Mortgage Broker is generally going to have the best chance at having the best deal.  I would never go with a national lender suggested by a turnkey company; reason being they most likely have higher rates because they are being fed leads by turnkey companies and need to pay for those affiliate deals.

Rates change daily so if you're shopping for quotes ask for the same rate with the same down payment on the same day from multiple people to ensure apples to apples comparison.  Shopping around will always help you understand where you sit, and give you a chance of finding someone who's better than you expected.  Just beware that there are people out there who throw out lower than possible numbers because they know you're not moving forward right away and rates always change so they have an out when you are ready.  So it's not just about the numbers.