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Should I Complete Multiple Mortgage Applications at the Same Time?

Should I Complete Multiple Mortgage Applications at the Same Time?

Taking out a mortgage may be the biggest financial decision you will ever make. Your mortgage loan may be with you for years- even decades. So it makes sense to shop around for the best one. But, many homeowners worry that shopping for and applying for more than one mortgage will hurt their credit and their chances for approval. The good news is, homeowners can apply for multiple mortgages without hurting their chances of approval for the one that suits them best.

Multiple Mortgage Applications

Submitting multiple mortgage applications is often used to set off a credit inquiry that would damage the credit scores of hopeful borrowers and jeopardize approvals. But credit bureaus today have come to realize that mortgage loan applications only typically result in one mortgage loan. Credit reporting bureaus now permit "rate shopping" by home buyers with no major cost to credit scores.

Rate Shopping

Trying to find the best interest rate on a mortgage loan is called rate shopping. According to mortgage experts, all mortgage applications made within in a 14-day window are considered to be a single credit inquiry. Many mortgage applications made in 14-days will not harm your credit.

Mortgage Rate Websites

Many mortgage websites specialize in multiple rate quotes. You can shop for mortgage loans and rates using such a site website, and choose one lender from many. Most of these websites ask shoppers to rate their own credit and do not ask for a Social Security number. But to obtain a mortgage loan interest quote you'll be required to supply your Social Security number to a lender.

Obtaining Multiple Mortgages

Obtaining multiple mortgages on one property and seeking mortgages for multiple properties is not the same thing. Ordinarily, a home buyer can be given more than one mortgage to purchase single properties, if he or she qualifies.

For more information on mortgage shopping and how to find the best mortgage for your needs, contact the professionals at Midland Mortgage today.

Posted Nov 09, 2016 by Midland Mortgage Corporation