How to shop for best mortgage lender?

Financing
1

Hey

Here are the questions:

  1. Should I get multiple pre-approvals from different institutions, and will this damage my credit?
  2. How can I effectively compare interest rates?
  3. Is it better to obtain a single pre-approval and present it to multiple lenders?

Any assistance would be appreciated.

2

It’s smart to get multiple pre-approvals in a short period; it won’t hurt your credit much. To compare rates, check the APR and get loan estimates from different lenders. Having several pre-approvals will give you a better view of your options.

3

To find the best mortgage lender:

  1. Improve your credit score.
  2. Set a realistic budget.
  3. Understand different mortgage options.
  4. Compare rates and terms from multiple lenders.
  5. Get preapproved for a mortgage.
  6. Ask lenders questions to ensure they meet your needs.
4

When shopping, consider reaching out to the following:

  1. Your Bank: They might offer incentives for existing customers. Banks often provide significant discounts if you move your banking relationship to them.
  2. Large National Banks: They can offer competitive rates and terms.
  3. Credit Unions or Community Banks: These institutions often provide personalized service and lower fees.
  4. Online Lenders: They typically offer convenience and competitive rates.
  5. Local Broker/Realtor Recommendations: They can connect you with trusted lenders in your area.