Can I apply for 2 mortgage loans from 2 different lenders in parallel for the same property?

Deal Score0

What would be the consequences if I did so?
One lender quoted a better rate but did not seem confident in approving the loan on time. I trust the other lender, but they have a higher rate.

  1. Reply
    April 29, 2011 at 9:35 pm

    Yes, you can apply, however cannot accept both approvals. In my experience I have never heard of consequences for applying with different lenders, nor have I ever dealt with any, I have applied with up to 3 at one time. It’s just like car shopping, you aren’t gonna go to Dealer A if Dealer B can get you a better deal for the same car.

  2. Reply
    April 29, 2011 at 9:38 pm

    Apply for as many as you want (get good faith estimates and preapprovals). The only consequence is for the part of the application that they want money.
    You just can’t receive both loans (keeping cash would be illegal).
    It’s a good idea to get multiple quotes from lenders (and to try to get others to match/better the offers for your rate/fee structure).

  3. Reply
    April 29, 2011 at 9:42 pm

    Definitely shop around!… Afterall, it’s your hard-earned dollar that you’re trying to save!!

    Good luck!

  4. Reply
    April 29, 2011 at 10:24 pm

    Yes. But it may require disclosure by any of the lenders.
    Best idea is to find a Mortgage Broker who can access multiple lenders. Ask for referrals from a RealtorĀ®.
    There would be minimal, if any consequence, because applying, does not mean acceptance. However, it will add inquiries to your credit report, & possibly some fees, which you may wish to keep to a minimum.

    Don’t judge by rates alone. Look at your options on the lenders reputation, the types of loans available (conventional vs. 5/1) and how long you expect to hold the property.
    Hope this is enough to help. I could go on, but…….

  5. Reply
    April 29, 2011 at 10:47 pm

    yes you can just listen to your heart it’s the best thing to listen to!

  6. Reply
    Patrick G
    April 29, 2011 at 11:05 pm

    sounds like the cheaper lender is just lying to you. Yes it happens, all the time. you will have to pay for two appraisals, that is the only extra cost. if the second lender finds out that you are double apping him, he won’t have any reason to work hard on your loan. your risk.

    • Reply
      Charlie Cousins
      August 23, 2012 at 1:04 pm

      Actually, if it’s a VA loan you’re going for, the appraisal and subsequent VA approval of the appraisal is for the property and can be used by multiple lenders.

  7. Reply
    Kenneth D
    April 29, 2011 at 11:34 pm

    The only possible negative consequences that I can think of are minimal: A possible point or two hit on your credit score for the credit check and the possibility that you may need a release if both file a notice of settlement. Provided you are just shopping, the latter should not be a problem. The point or two hit on your credit score will not be a problem unless you are on the border of a rating; for instance if the mortgage company required a score of 700 for “A” paper and your score went down to 698 because of your application, it may cost you a lot in the long run. I agree with the suggestion of finding a reputable broker that can find you the best solution for your situation.

  8. Reply
    April 30, 2011 at 12:30 am

    Yes. You can only choose one or the other to complete the transaction with. Be aware of lowball quotes. In this business there is alot of overpromising and under delivering. A mortgage lender or broker that shows integrity in answering your questions should be the more favorable choice. One word of advice, DO NOT use your realtor as a lender. Their area of expertise is real estate and it has been my experience that they may have the ability to do loans, but not the understanding. And vice versa. As a loan processor, I cannot assume I know how the realtor side of a purchase transaction goes as I can not write a purchase contract. I cannot assume I know how the escrow side of the transaction will go because I have never been in escrow. What I do know, is that whomever you choose for all facets of your transaction should work TOGETHER to get your transaction done. Good luck.

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