Mortgage Services and Loan Tips

Is it OK to use more than one lender for a mortgage so I can accept the best offer?

I am a first time home buyer and want to shop around for the best deals / prices. I would like to have pre-approved for a loan. I would also like to shop around for the best conditions, interest rates etc. I also want to make sure I am pre-approved for the right amount (for the house that I want and can afford). Is it a good idea to seek prior approval to more than one lender, so I can choose the best offer? I know it can be negative for a lender to check my credit report pulled from different lenders. Would they see that as a person looking for the best loan or as a person wishes to extend their credit? Would they be able to tell the credit checks were drawn a mortgage application? I'll probably have more questions but I guess I will wait for the answer to this one before premature. In advance thanks.

Do not let anyone pull your credit report before you make your selection. You can get your score yourself let the lender know the number. You can call around themselves and then compare prices of the same type of loan. Go for a simple straightforward loans. No variable interest rates, balloon payments, PMI, etc. Talk to as many lenders as possible and write everything down every say in a notebook. I've found e-commerce to be very responsive and direct with good prices. Large banks may have decent credit, too. Passports of companies that advertise on the radio. Trust no one until you do your research. Find out what the loan will cost as if you were to write them a check for all fees rather than letting them roll it into the loan. You'll be very surprised how many do not want to answer that. Also make sure that there is no prepayment penalty. Some of the major advertisers on radio charging huge prepayment fees (if you must sell or refinance) and is very sneaky about this. It is very easy to get funded. Make sure that you can easily afford the payment. Most lenders will let you know you can afford a payment much higher than what you actually can simultaneously eat. Lucky Charms Arm yourself with knowledge and you will just fine! You do not want to apply for many loans! By getting your own scores you can use this info to shop your loan around. Sometimes brokers choose lenders because lenders bring donuts to their offices. Ring any mortgage company you can on your own. Once you have narrowed it down, ask around. Find out who the other people you know have their loans through and why they chose them. Also by getting your credit report you have time to to search for and fix any errors that may be on your report.