As mentioned earlier, several credit applications for the same purpose within a short time will be considered like only one inquiry. Before you talk to any lenders though you can get a free report at annualcreditreport.com once a year from all of the 3 bureaus without any ramifications(this does not count as an inquiry); you have to pay a few bucks extra for a credit score( less than $10) With this info you can call the banks and ask what they can do for you.
Keep in mind some banks will give you better rates if you have a "realtionship" or direct deposit.
myfico.com will also give you pointers on how to improve your score before you ask for the credit score.
Good luck.
Andre 650 303-2520

Hi Greg, looks like you will be "rate shopping."

To prevent making mistakes that will cost you in the long run take a quick look at the following:
http://docs.Steven-Anthony.com/RateShopping-DoItRight.pdf

There is a difference between a Pre-Qualification and a Pre-Approval. See the differences here:
http://www.Steven-Anthony.com/default.aspx?pp=39377


How many different lenders should I go to for a pre-approval? One!
There's no reason to be spreading your personal information around. You should interview different Mortgage providers and then select one to work with. In the same way you would identify a primary doctor or dentist, you should start to "team" with a mortgage professional to share all your long-term financial goals. I mean, really, "rate shopping" is not at the top of the "fun list."


“I'm worried about my credit score getting dragged down in the process.”
I would advocate that you allow the mortgage professional you choose to work with pull your tri-merge credit report [Equifax, Experian (formerly TRW), TransUnion] as part of the Pre-Approval process when it comes time for a few reasons:

1] I’m sure they will be more than willing to advise you on how to improve your score if there are issues. The 5-10 point hit is minimal compared to the advice you will receive on how to improve score. For example, a "supplemental report" that takes off errors is a tool, but this does not update the score. Another tool is the "Rapid Rescore" that allows you to update all three credit agencies ASAP; however, this will cost you upwards of $150+, depending on how many accounts you are updating. You can then immediately pull your credit again to get an updated score. Other than this, most accounts are updated the beginning of each month, and a 3-6 mo window is needed to see the natural effect of any positive pro-active action you take to improve your score (based on consultation with your mortgage professional).

2] myFico charges $15.95 for each credit report pulled, and only offers two of the three reporting agencies, the tri-merge report from the mortgage professional should be no more than $20. FYI, out of the three scores, the "middle score" is typically used for qualifying.

If multiple lenders pull your report within a 30-day window your score will not be affected (the credit-scoring algorithms understand that it is common for people to shop when looking for a mortgage provider). Within the 30-day timeframe your credit score will not be negatively affected, by multiple “pulls”, outside of this window it will (5 to 10 pts per pull). Your actual scores are generated by looking back 24 months; however, dependent on individual underwriting guidelines, items that fall into the derogatory section (bankruptcy, foreclosure, etc.) of your credit report can influence an approval decision up to 10 years.


“And what are your thoughts on Internet lenders like Aimloans.com?”
Do you really want to take advice from someone in that might be seated in another state and/or you are unable to meet with? I’m not saying a good outcome is not possible, just that I believe your focus should be on identifying a local source that you can build a long-term relationship with. I would highly recommend finding someone with a Certified Mortgage Planning Specialist designation. You can search for one in your area here:
http://www.cmpsinstitute.org/public/menu

Best, Steve

Greg, why don't you let your fingers do the walking and call three lenders like Wells Fargo, B of A, and Chase and have a conversation with them about what kind of loan programs they have and what their cost of money is?

At that point you can decide who to work with and then let them run your credit. Talking with them to get good information doesn't cost you anything and they don't have to run your credit.

You should have some kind of idea how your credit is. Hopefully your score is over 700+ and if you have at least 20% down, you will qualify for the best rates.

If you need a referral to some lenders, please feel free to ask.

Good luck,

Dave Tap Tapper
Realtor
Cashin Company http://www.DavidTapper.com
650-403-6252

The Million Dollar question when getting the mortgage is "Are you getting the right mortgage". A 30 year mortgage may not be the right solution for everybody.

Mortgage Planning and Mortgage Protection are essential elements. Should you make extra payments? How many years you plan to live in this home? When should you lock? These are only some of the questions one should consider.

Greg,

Many borrowers share your concerns about multiple credit checks, so I always tell my clients to check out myfico.com and get the answers about multiple inquiries directly from the source.

To answer your questions about "how many" lenders you should consider, well, that is really up to you. I have come to find that ALL borrowers are looking for the same 4 things:

1) Low rates and costs.
2) Good communication.
3) A smooth loan process.
4) Honesty and integrity in service.

Whether you go to just one lender or to 10, I think that once you find this combination above, you will be in good shape. If you would like to include Mortgage Master in your choice, contact me any time.

Best regards,

Rob Spinosa
rspinosa@mortgagemasterinc.com

3 lenders. In the home loan process- your credit will be checked of course....everytime your credit is checked it actually lowers your score. If you are shopping lenders, you can have your credit checked 3 times by 3 different lenders and it only counts as one credit check, verses 3.
Good luck!