I’m looking to buy a house and my contract has already been accepted by the seller. Can I apply for this loan (which will be FHA) with two different lenders at the same time so in the end I go with the one who gave me the better rate + closing costs?
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5 Responses to 'Can I apply with 2 different lenders for a FHA Loan?'
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Of course you can. It is expected that you will rate shop.
ask them for rate and closing costs now. pick the lowest one. The rate and fees are known right now.
you will not want to apply with more than 1. It will be very painful that way.
Compare the two but don’t apply to both or both will run credit checks and require you to have appraisals, which means you’ll be paying for 2 appraisals. Ask them ahead of time what their rates and closing costs are and the estimated amount of time it will take to close. Also, ask about points, origination fee, application fee, etc. Then pick the best one to apply with. Most mortgage companies let you lock in the rate when you apply so it’s not like you would get a better rate at closing, even if you applied with 2 companies.
When comparing mortgages and rates you must know what you are comparing. You must compare apples to apples and not oranges to apples.
In order to compare mortgages make sure you get from each person that you apply for give you a Good Faith Estimate and a Truth In Lending
These two documents will compare the APR which will tell you the cost of your loan for the beginning year.
You may apply to as many mortgage bankers/brokers as you which. Your interest rate will be based on your credit score, the way your pay your debts on your credit report.
Applying for a mortgage loan is pretty cut and dried now. There should not be that much of a difference between one mortgage company and the other.
There are many things you should do, but the first thing you should do is contact a mortgage broker that does FHA mortgage loans and get pre-approved. This is the first step. Once you have your pre-approval then contact a real estate agent to look at house based on what you are qualified to buy.
You will need proof of income so have available pay stubs, w-2, bank statements and other items your mortgage broker will require.
He will inform you of what is necessary once you contact him.
This pre-approval will tell you the amount of house you are qualified to purchase as well as the interest rate, monthly mortgage payments and other necessary things you need to know about your mortgage.
I hope this has been of some benefit to you, good luck.
“FIGHT ON”
No you can not and there are a couple of reasons why.
1) Each FHA loan requires a case number which is tied to the borrower. Only one case number can be issued at a time per borrower.
2) Both lenders would have to pull separate credit reports and order separate appraisals - the appraisal is also tied to the case number so now you’re back to problem #1.
3) Most loan officers and loan processors are paid on commission only so do you think it’s fair to have 2 different teams working on your loan when only one of them will actually get paid for the work they do?