Currently I am planning to get pre-approval letters from banks, my FICO score is above 780 so getting a good interest rate shouldn't be a problem. But my income is relatively low and obviously I would want to choose the bank that can loan the most amount of money to me, but do all banks use the same formula? I am worried about that obtaining multiple pre-approvals might lower my credit score. If the variation of the amount of loans from banks is small then it is probably not worth the hassle right? Please advise me.
When you apply for multiple preapprovals within 2 weeks, they all count as one inquiry as far as scoring goes so you could shop around for the lowest interest rate, yes. Just try to do it all within two weeks.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Last App: 4/5/13 Gardening until July 2014
You can only buy as much as you can afford according to your income and debts. There may be a small difference between lenders in how much to pre approve you for, but it wouldnt be 10's of thousands.
Your scores play no part in how much home you can afford.
Good Luck May all your dreams and wishes become a reality!
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! 
Last App: 4/5/13 Gardening until July 2014
