If you have already been approved with the first bank but want to shop for the mortgage rate, you need to keep in mind that mortgage inquiry lowers your FICO score by 5 points. So you are better off limiting your "rate shopping" time to 14 days. This way you will have only one inquiry and all others will be ignored by the credit bureau.
In general, the answer to your question will depend on how far you are in the process with the first bank and what's your time frame. By switching the bank you basically have to start from scratch. Most documents have very short expiration time frame so if you want to change a bank, you may have to spend some time on getting additional paperwork.
Ultimately, you ABSOLUTELY NEED to find a mortgage professional you feel comfortable with. It makes all the difference in the world. I had so many cases when clients were denied by several banks, deals were about to fall through and buyers were devastated. And all it took is one mortgage specialist who could ask the right questions and put it all together to get the deal through.
I have some incredible professionals I work with in New York and if you need help with that, I can ask them for references. I'm sure they can recommend a strong expert in your area.
It all really depends on your situation. I would love to have an opportunity to speak with you regarding the specifics of your situation so I can better advice you. I'm also interested in knowing why you're looking to switch lenders? Sometimes you can improve your situation and other times your making a lateral move. It all depends.
Feel free to call or email me anytime. Good luck!
If my response was helpful, consider clicking BEST ANSWER!
Senior Loan Officer
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
This suggests that you have merely spoken with a mortgage banker and he or she has indicated that you are likely to qualify for a loan, but you have made no signed commitment.
In Florida, customers are free to speak to as many loan originators as they wish without obligation, until such time as they choose to work with someone.
It is likely that is true in your area, too.
As for lending on a short sale, a property is just a property. The seller of the short sale will not care, nor will that seller know which bank you are using until it comes time for you to state that you have gotten a mortgage commitment.
However, since short sales often take several months to close, the initial mortgage commitment you get and the rate you discuss may be change by the time that short sale finally goes through.
Make sure the mortgage banker you ultimately choose to work with is aware that there is no definite closing date for your sale (if that is the case) and ask him or her to give you the longest possible rate lock.
Marc Jablon, the Jablon Team
Re/Max Complete Solutions