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How many mortgage lenders did you apply to before you picked?
Hi everyone! I just went into contract for my first home in Suffolk Cty. I have contacted two mortgage lenders so far and am starting their application processes. I gathered so many references from this board, and in real life, and wondering how many lenders I should ultimately apply to?
Would you mind sharing a good estimate for me? TIA 
Message edited 3/29/2018 10:03:48 PM.
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Posted 3/29/18 10:02 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
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How many mortgage lenders did you apply to before you picked?
I just went with the bank that did the pre approval for us. They had 90% of our paperwork for the pre approval so it was just the application and a few other pieces of info needed. We got a 3.5% rate with them at the time and from what I saw on other banks websites I thought it was a comparable guide. We used M&T bank and I’m happy with them. Fairly easy but underwriting was extremely strict which made me crazy at times but it was pretty painless and I’ve never had an issue with them.
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| Posted 3/29/18 10:10 PM |
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LuckyStar
LIF Adult
Member since 7/14 7274 total posts
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How many mortgage lenders did you apply to before you picked?
One. I've never heard of applying with multiple lenders. I'm not sure why you would want to do this? You would just end up with a bunch of credit dings and that's bad news bears when you're applying for a loan.
They should be able to give you a rate estimate without actually applying.
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| Posted 3/29/18 10:29 PM |
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SusiBee
. . . . .
Member since 3/09 8268 total posts
Name:
S
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Re: How many mortgage lenders did you apply to before you picked?
Why would you apply to multiple lenders ?
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| Posted 3/30/18 8:02 AM |
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Re: How many mortgage lenders did you apply to before you picked?
I was totally under the impression that I need to start “shopping around” with multiple lenders to see who has the best rate/options for us. Now I’m thinking I’m doing it all wrong! So I should just ask these 2 that i’ve already sent my documents, to just give me “rate estimates” before we proceed with the application.
Thank goodness I asked on here! I would have been sending my precious personal documents around like peanuts at a ballgame!! 
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| Posted 3/30/18 9:25 AM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
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How many mortgage lenders did you apply to before you picked?
I only applied to 1. Shopped rates before doing so, but only applied to one. Each one that runs your credit will cause s slight rate drop, so you want to avoid that
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| Posted 3/30/18 9:52 AM |
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Re: How many mortgage lenders did you apply to before you picked?
I thought that once you have your credit run for mortgages all during a 30 day period, it doesn’t count against you.
I feel so misinformed 
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| Posted 3/30/18 9:55 AM |
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LuckyStar
LIF Adult
Member since 7/14 7274 total posts
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How many mortgage lenders did you apply to before you picked?
How did you choose these lenders? Did you choose them solely on the rates they were offering? Mortgage rates are very public info. You can go to any lender’s website and their lowest rates will be all over the site in giant numbers. Usually most people start with whoever did their preapproval since they likely vetted the lender ready (and they already have your info).
When people say “shop around” I think they mean finding out preliminary rates, how long they take to close, any incentives they offer. That can all be done without having your personal info.
Do you have a buyers agent? They should really be guiding you through the process.
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| Posted 3/30/18 9:57 AM |
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LuckyStar
LIF Adult
Member since 7/14 7274 total posts
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Re: How many mortgage lenders did you apply to before you picked?
Posted by TeacherMommy7
I thought that once you have your credit run for mortgages all during a 30 day period, it doesn’t count against you.
I feel so misinformed
I’m not sure that’s true but I even if it is I would assume it’s only if it’s from the same bank.
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| Posted 3/30/18 9:59 AM |
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Re: How many mortgage lenders did you apply to before you picked?
I understand. I’m going to do a boat load of research today; good thing I’m off from work to do so.
The nature of how we “stumbled on” this house was- we met a real estate broker who was selling the listing, therefore he is essentially the sellers agent, now dually representing us. He did give us a few mortgage contacts, but he didn’t explain the process at all.
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| Posted 3/30/18 10:03 AM |
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LuckyStar
LIF Adult
Member since 7/14 7274 total posts
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Re: How many mortgage lenders did you apply to before you picked?
Posted by TeacherMommy7
I understand. I’m going to do a boat load of research today; good thing I’m off from work to do so.
The nature of how we “stumbled on” this house was- we met a real estate broker who was selling the listing, therefore he is essentially the sellers agent, now dually representing us. He did give us a few mortgage contacts, but he didn’t explain the process at all.
I’m not sure where you applied but I would call and speak with one of the loan officers you’re working with to clarify things. Your lawyer might be a good resource, too.
The agent is double ending the deal, you would think the least he could do is spend 10 minutes talking to you about what comes next.
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| Posted 3/30/18 10:10 AM |
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chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
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Re: How many mortgage lenders did you apply to before you picked?
Posted by TeacherMommy7
I understand. I’m going to do a boat load of research today; good thing I’m off from work to do so.
The nature of how we “stumbled on” this house was- we met a real estate broker who was selling the listing, therefore he is essentially the sellers agent, now dually representing us. He did give us a few mortgage contacts, but he didn’t explain the process at all.
Just be aware, the agent is NOT representing you. He has a contract with the seller to represent THEIR best interest, not yours.
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| Posted 3/30/18 10:40 AM |
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: How many mortgage lenders did you apply to before you picked?
Posted by TeacherMommy7
I thought that once you have your credit run for mortgages all during a 30 day period, it doesn’t count against you.
I feel so misinformed
That's true.
https://www.myfico.com/credit-education/credit-checks/credit-report-inquiries/
https://www.creditsesame.com/blog/mortgage/mortgage-inquiries-07062011/
Credit inquiries within 30 days will only count as one "hit" on your credit score, and only after 30 days, so your 3rd inquiry in a month won't see a lower score than your 1st inquiry.
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| Posted 3/30/18 10:46 AM |
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Re: How many mortgage lenders did you apply to before you picked?
Posted by chilltocam
Posted by TeacherMommy7
I understand. I’m going to do a boat load of research today; good thing I’m off from work to do so.
The nature of how we “stumbled on” this house was- we met a real estate broker who was selling the listing, therefore he is essentially the sellers agent, now dually representing us. He did give us a few mortgage contacts, but he didn’t explain the process at all.
Just be aware, the agent is NOT representing you. He has a contract with the seller to represent THEIR best interest, not yours.
Oh yes, right off the bat, throughout contract negotiations we were well aware that he was working in their best interests and not ours. So frustrating. Luckily, we have our own lawyer, not in connection to him, but I didn’t think to ask her mortgage application tips.
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| Posted 3/30/18 10:46 AM |
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Re: How many mortgage lenders did you apply to before you picked?
Ah, thank you. Makes me feel better, as we’re being pulled by two lenders as we speak.
I learned that fact on the Suze Orman Show yearsss ago, so I worried it was outdated info.
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| Posted 3/30/18 10:49 AM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
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Re: How many mortgage lenders did you apply to before you picked?
Depending on the kind of mortgage you're looking for, you can usually see rates online. What you won't be able to compare is the fees that each lender will charge you.
The first mortgage we were pre-approved with a large bank but then went through a recommendation for our actual mortgage to a broker. We didn't do much shopping around and only submitted 1 application.
We're currently in the process of getting our second mortgage and this one I shopped around for a bit more because it was a larger mortgage. In the end, we wound up speaking with 4 banks/institutions/brokers. All 4 asked to pull our credit reports. While it's usually not a good thing to have your credit report pulled so frequently, it's to be expected while shopping for a mortgage. Our credit ratings fell MAYBE 10 points in total. Not a big deal at all.
Anyway, some institutions will give you an idea of costs or a GFE without going through the entire process, but not all will. In the end, we submitted an application to a credit union. Then I found a small bank with a better rate, so I had the credit union stop that application and we applied to the bank, where we are ultimately getting our mortgage.
A long story to say - there's no right way to get a mortgage and no one size fits all solution. You should try to educate yourself and then go with the institution you feel most comfortable. Good luck!
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| Posted 3/30/18 11:05 AM |
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Re: How many mortgage lenders did you apply to before you picked?
We had no idea it would be this complicated. With such high taxes on LI, we ultimately just want to lock the best rate/monthly payment possible!
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| Posted 3/30/18 11:11 AM |
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Re: How many mortgage lenders did you apply to before you picked?
Posted by TeacherMommy7
We had no idea it would be this complicated. With such high taxes on LI, we ultimately just want to lock the best rate/monthly payment possible!
I sell a lot of houses, and personally I don't believe it should be this complicated.
It's better to do your research or "shop around" before you are in contract. Once you are in contract, keep in mind that the clock is ticking for you to get your mortgage commitment in place. Usually, you have 45 days to do that from the date of contract, but it can vary.
Also, if you are putting in full applications at multiple lenders, they may order appraisals. You don't want to pay for more than one appraisal if you don't need to.
Truthfully, the rates shouldn't vary that much from one lender to the next with a typical loan. They may vary based on the type of loan you get and your personal qualifications, but the rates are pretty much the rates, with maybe a quarter point difference. But then some banks may charge points, may have higher fees/closing costs. You really have to compare APRs not just rates to make sure you are looking at the true cost to you over the life of the loan. Many banks will advertise very low rates but they are for 15 year loans or other types of loans that you may not want or be able to get.
I usually think it's best to go with a mortgage bank (a bank that specializes in mortgages) versus a large commercial bank. They usually have more knowledgeable personal, and more discretion in what they offer. They are usually quicker and have better customer service. The loan officer knows the underwriting team, and they usually work on site, which can help resolve any issues that arise. Credit unions can also be good for rates/fees, but they typically are very selective and take the "cream of the crop" applicants only. They can also be slower and be sticklers on certain things, such as COs, so whether or not I would recommend pursuing a credit union loan would vary by applicant and by house.
I think if you have contacted 4 lenders, that should be enough to make your decision. Look at the rates, the APRs, etc. but also consider the loan officers. People can have vastly different experiences with the same lender depending on the loan officer with whom they are working. You want someone who is on top of their game and who communicates well with you and who you believe is honest and knowledgeable. The loan officer/loan originator is sort of the project manager for the entire thing.
If you can get personal recommendations from friends who have purchased or from people on here, even, that's probably the way to go. But since you have already contacted multiple lenders, I'd just pull the trigger and decide.
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| Posted 4/5/18 10:15 AM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19458 total posts
Name:
L
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Re: How many mortgage lenders did you apply to before you picked?
I checked the on line rates of all the local lenders near me, from that list I checked their closing cost fees. Of that I narrowed my list to include banks that I had existing relationships with and one I did not. I did not apply with all of them, I just spoke with them to see what they could do for me. I went with the one that had the lowest closing costs. They all had the same interest rate and length of mortgage which made comparing them relatively simple. I only submitted one application, even though I spoke with four lenders.
To ask: do you require me to escrow my taxes and insurance?
How much is your title search?
How much is your closing costs?
How much is your appraisal?
Filing fees/stamps to record mortgage? How many pages is your typical mortgage? The more pages the more fees. Some mortgage lenders have more pages than others and that can impact your recording fee.
How long does a typical mortgage take to close?
What documentation do you require? Usually a few last pay checks, the amount in your bank accounts, if you are receiving money from any family, a gift statement, how much down payment? What else do they need?
What is the interest rate?
What is the APR?
What length of term? 15, 20, 30 year mortgage rates?
Prepayment penalty?
Look at rates from credit unions, local banks, your current banks, and maybe a national bank.
Ask them what kind of on line access they have?
Will they sell and repackage your mortgage or do they tend to keep mortgages in house?
I asked those questions to my prospective mortgage lenders. I am sure it is not an exhaustive list, but hopefully it will get you in a good direction to know what to ask.
Message edited 4/6/2018 2:24:46 PM.
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| Posted 4/6/18 2:12 PM |
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Re: How many mortgage lenders did you apply to before you picked?
Posted by Christine Braun - Signature Premier Properties
Posted by TeacherMommy7
We had no idea it would be this complicated. With such high taxes on LI, we ultimately just want to lock the best rate/monthly payment possible!
I sell a lot of houses, and personally I don't believe it should be this complicated.
It's better to do your research or "shop around" before you are in contract. Once you are in contract, keep in mind that the clock is ticking for you to get your mortgage commitment in place. Usually, you have 45 days to do that from the date of contract, but it can vary.
Also, if you are putting in full applications at multiple lenders, they may order appraisals. You don't want to pay for more than one appraisal if you don't need to.
Truthfully, the rates shouldn't vary that much from one lender to the next with a typical loan. They may vary based on the type of loan you get and your personal qualifications, but the rates are pretty much the rates, with maybe a quarter point difference. But then some banks may charge points, may have higher fees/closing costs. You really have to compare APRs not just rates to make sure you are looking at the true cost to you over the life of the loan. Many banks will advertise very low rates but they are for 15 year loans or other types of loans that you may not want or be able to get.
I usually think it's best to go with a mortgage bank (a bank that specializes in mortgages) versus a large commercial bank. They usually have more knowledgeable personal, and more discretion in what they offer. They are usually quicker and have better customer service. The loan officer knows the underwriting team, and they usually work on site, which can help resolve any issues that arise. Credit unions can also be good for rates/fees, but they typically are very selective and take the "cream of the crop" applicants only. They can also be slower and be sticklers on certain things, such as COs, so whether or not I would recommend pursuing a credit union loan would vary by applicant and by house.
I think if you have contacted 4 lenders, that should be enough to make your decision. Look at the rates, the APRs, etc. but also consider the loan officers. People can have vastly different experiences with the same lender depending on the loan officer with whom they are working. You want someone who is on top of their game and who communicates well with you and who you believe is honest and knowledgeable. The loan officer/loan originator is sort of the project manager for the entire thing.
If you can get personal recommendations from friends who have purchased or from people on here, even, that's probably the way to go. But since you have already contacted multiple lenders, I'd just pull the trigger and decide.
Thank you SO much for your thoughtful, response, Christine. Your wisdom is a true virtue on this board!!
I'm happy to say that while we began to apply to two different lenders, we found exactly as you stated-- the rates are the rates, not much variation at all among the two. We are ultimately going with the mortgage bank, not a larger institution, so I'm glad you recommend that route. Funny enough, we also found the loan officer to be really on top of his game-communicating in a timely manner with us, extremely knowledgeable and a good educator (the most helpful person to us so far in this realm.) It was a stressful week, feeling uniformed and a bit lost, but I'm glad this hurdle is over. On to the next- ha!
Thank you again.. wish me luck!   
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| Posted 4/7/18 7:32 PM |
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Re: How many mortgage lenders did you apply to before you picked?
Posted by LSP2005
I checked the on line rates of all the local lenders near me, from that list I checked their closing cost fees. Of that I narrowed my list to include banks that I had existing relationships with and one I did not. I did not apply with all of them, I just spoke with them to see what they could do for me. I went with the one that had the lowest closing costs. They all had the same interest rate and length of mortgage which made comparing them relatively simple. I only submitted one application, even though I spoke with four lenders.
To ask: do you require me to escrow my taxes and insurance?
How much is your title search?
How much is your closing costs?
How much is your appraisal?
Filing fees/stamps to record mortgage? How many pages is your typical mortgage? The more pages the more fees. Some mortgage lenders have more pages than others and that can impact your recording fee.
How long does a typical mortgage take to close?
What documentation do you require? Usually a few last pay checks, the amount in your bank accounts, if you are receiving money from any family, a gift statement, how much down payment? What else do they need?
What is the interest rate?
What is the APR?
What length of term? 15, 20, 30 year mortgage rates?
Prepayment penalty?
Look at rates from credit unions, local banks, your current banks, and maybe a national bank.
Ask them what kind of on line access they have?
Will they sell and repackage your mortgage or do they tend to keep mortgages in house?
I asked those questions to my prospective mortgage lenders. I am sure it is not an exhaustive list, but hopefully it will get you in a good direction to know what to ask.
Thank you, thank you, thank you!
This is the most concise list I've seen to date. There are so many q's on this that I need to ask! It's so weird.. everyone I know has either purchased a home many moons ago, or have yet to purchase.. this board is such an amazing support, my husband and I are very grateful.
Thanks again!
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| Posted 4/7/18 7:36 PM |
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