FAQ
While you can technically lock your rate in with multiple lenders, doing so implies you’re following through with the loan application process. Locking your rate could also trigger a credit check and sometimes other fees, which you might still be responsible for even if you decide to do business with another lender. For these reasons, it’s best to shop for rates with multiple lenders, but only lock your rate with the one waving the most compelling offer.
While it’s a good idea to rate-shop with at least three lenders, you only need one preapproval letter to make an offer on a home.
You’ll apply for a mortgage once a seller accepts your offer for their home and both parties sign the purchase agreement. Before you begin searching for homes and making offers, you’ll need to obtain a preapproval for the mortgage. The preapproval process is very similar to the application process, and much of the information you provide for a preapproval transfers to your application when the time comes. Get preapproved when you’re ready to search for homes. Typically, a preapproval remains valid anywhere from 30 days to 90 days. If you haven’t found a home by that time, you might need to ask your lender to issue a new preapproval letter.
When applying for a mortgage, it’s best to compare at least three lenders, according to the Consumer Financial Protection Bureau (CFPB). This can help you uncover the ideal combination of loan type, interest rate and fees that meets your needs.