Applying for mortgages via multiple lenders

[Anonymous]

I started the mortgage application process with 5 different lenders because I want to get the best terms I can and have them compete against each other.

Well, that didnt work out too well.  My credit score dropped by 20 points with all those credit inquiries.  Also, 2 of the lenders are asking me questions about why I am applying with the other mortgage lenders.

I thought the credit score model was changed so that your score wasn't supposed to take a big hit as long as the inquiries were around the same time and for the same purpose?  Is that not true?

Thats crazy that I get penalized just for shopping around.  It's not like I'm trying to buy a car or open up a new loan besides the mortgage.  

Are the lenders going to back out if they realize that I'm applying thru multiple lenders?

[ShanetheMortgageMan]

Was your credit report data identical on each credit check?  If so, then the first one should've dinged your scores but the others (if they were within 30 days) shouldn't have.

As far as the lenders backing out, as long as you are proceeding with them then I don't see why any would back out.  Just really depends on the loan officer though.  For example I don't go chasing clients, so if I don't hear from them after a 2-3 attemps then I'll just stop working on their file.  What are you waiting on in order to make a decision on which lender to move forward with though?  You should make a checklist of the most important items to you (communication, rates/fees, etc.) and you should just proceed with the lender that meets the most of your requirements, keeping others as backups.

[kc0039]

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@ShanetheMortgageMan wrote:

Was your credit report data identical on each credit check?  If so, then the first one should've dinged your scores but the others (if they were within 30 days) shouldn't have.

As far as the lenders backing out, as long as you are proceeding with them then I don't see why any would back out.  Just really depends on the loan officer though.  For example I don't go chasing clients, so if I don't hear from them after a 2-3 attemps then I'll just stop working on their file.  What are you waiting on in order to make a decision on which lender to move forward with though?  You should make a checklist of the most important items to you (communication, rates/fees, etc.) and you should just proceed with the lender that meets the most of your requirements, keeping others as backups.

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This. I won't chase down clients as well. Most people won't even give the courtesy of a call back because they have found what they need. You can say that you're out shopping your lender with other lenders

[Anonymous]

I just got read the riot act in another thread here for doing this very thing with 2 lenders that are both preferred lenders of the builder. 

[VALoanMaster]

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@Anonymous wrote:

I just got read the riot act in another thread here for doing this very thing with 2 lenders that are both preferred lenders of the builder. 

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http://ficoforums.myfico.com/t5/Mortgage-Loans/How-long-is-a-file-in-underwriting/m-p/4866629/highlight/false#M204010

No you didn't. You got read the riot act because you have 2 lenders UNDERWRITING your loan at the same time. That is totally different then applying for loan so you can compare Loan Estimates from multiple lenders.

Read the replies in this thread:

[Anonymous]

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@VALoanMaster wrote:

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@Anonymous wrote:

I just got read the riot act in another thread here for doing this very thing with 2 lenders that are both preferred lenders of the builder. 

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http://ficoforums.myfico.com/t5/Mortgage-Loans/How-long-is-a-file-in-underwriting/m-p/4866629/highlight/false#M204010

No you didn't. You got read the riot act because you have 2 lenders UNDERWRITING your loan at the same time. That is totally different then applying for loan so you can compare Loan Estimates from multiple lenders.

Read the replies in this thread:

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AND I responded to you that it was the 2nd lender that pursued me knowing full well I had that approval from lender 1 and CHOSE ON HIS OWN to put it  through UW.  Thats not on me.  You said 'no lender would ever have suggested that' and well that is EXACTLY what happened. 

I will say it again: you are rude and harsh and I didnt appreciate the way your words made me feel.  You made me feel like a bag of dog poop and I dont appreciate it ONE BIT. 

[DallasLoanGuy]

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@Anonymous wrote:

Are the lenders going to back out if they realize that I'm applying thru multiple lenders?

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no. we compete on a daily basis.  but pick one before proceeding to underwriting. 

if i found out a client was proceeding beyond preapproval and going to underwriting with another lender. i would deny the file and move on.

[MauiMan85297]

I had a somewhat similar situation where I was given 5 business cards from builder and contacted the top company he said to contact which turned out not so good, #1 is the company that got my pre-approval letter sent to builder and I wanted to contact another lender to ask questions- 2 months went by and at that time it was time to get a FULL approval through UW, he sent me the docs to sign them but wanted to touch base with #2 to see if the fees could be less and they were plus he was always super responsive so I told #1 that I decided to go with #2 and went through the approval with them.

I'm in sales and know the process, all my two cents on this above post (junie) is that even if the other company said they'll send it to UW for approval, why would you do that when the Loan Estimate from both companies you've seen already and at that point you decide to go with that one company you want to give your business too.  All the time and resources put into that approval just to say you went with another lender is a kick in the gut.  Just could've been handled differently-just saying.

[Anonymous]

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@gsully00 wrote:

I had a somewhat similar situation where I was given 5 business cards from builder and contacted the top company he said to contact which turned out not so good, #1 is the company that got my pre-approval letter sent to builder and I wanted to contact another lender to ask questions- 2 months went by and at that time it was time to get a FULL approval through UW, he sent me the docs to sign them but wanted to touch base with #2 to see if the fees could be less and they were plus he was always super responsive so I told #1 that I decided to go with #2 and went through the approval with them.

I'm in sales and know the process, all my two cents on this above post (junie) is that even if the other company said they'll send it to UW for approval, why would you do that when the Loan Estimate from both companies you've seen already and at that point you decide to go with that one company you want to give your business too.  All the time and resources put into that approval just to say you went with another lender is a kick in the gut.  Just could've been handled differently-just saying.

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Gsully, #2 did this on the DAY I was approved with the other lender.  I was literally driving to his office with documents for him when I got the call.  I told him that too when I got there.  To me I had chosen lender #1 and THATS WHY I let it go through processing to UW, etc.  And guess what I contacted them today because I had a question about something and they immediately assisted.  So yeah I DO GET that they did all this work because I ASKED them to.  Lender #2 did that on his own so y'all need to lay off me please.

Look y'all I didnt purposely set out to do this, deceive anyone, take anyones paycheck etc.  Until I was reamed out in the other thread I had NO IDEA I had done anything (apparently morally) wrong. 

What I will say AGAIN is that the tone and harshness of those responses without knowing my entire scenario was uncalled for. 

[Anonymous]

Oh and up until now I always felt OK being in these forums.  Now I feel like I've been beat up and overstayed my welcome.

Time for a break.