Chris,
Scott's answer is the best one here IMHO. Your credit scores will not suffer due to multiple mortgage lender inquiries as long as they are in the same time frame.

While it is true that you shouldn't go all around town taking out loans, the credit bureaus wisened up a few years back and realized that when most consumers look for a mortgage they tend to check with 2 or 3 lenders to make sure they're getting a fair shake. The bureaus realized you're not out there signing up for 2 or 3 mortgages and they accordingly tweaked their scoring formulas.

You shouldn't fear letting a reputable lender pull a credit report. Under today's strict mortgage guidelines, in a lot of cases a lender cannot even quote a firm interest rate unless they have your credit report and all 3 scores, since most rates today (FHA excluded) are tiered based on your score, therefore two separate borrowers one with a 739 credit score and one with a 740 may pay different rates.

I'd recommend you limit your search to 2 or 3 lenders whom you consider "reputable" - either you bank with them already or you've gotten a mortgage from them in the past or they come highly referred by a friend. Speak to a loan officer and get pre-approved then make your decision on whom to work with based on whoever offers the best combination of rate, fees, and convenience. You'll most likely find that when dealing with a reputable company all these factors are pretty close (or at least they should be). All other things being equal, work with whomever makes you feel the most comfortable.

Good luck with your purchase
Tony

What's your reasoning to get pre-approved from multiple lenders? If you're trying to shop around for the best rates, you can do so without getting pre-approved from everyone. Quickly...the difference (in my book at least) between pre-qual and pre-approved is... pre-qual decisions by the lender are based on what you tell them with little to no verification. Pre-approval is a decision based on some/more verification of what you tell them. What you could do is get a pre-approval from one place, ...pay for a credit report (I just did one for myself and it was $26) and shop for rates saying... hey, what kind of loan program and rate would I qualify for if my credit score was X and my income is Y...my debts are Z?

Also, there is no "should" be in loan origination fees. I've seen less than 1% for the origination fees. YSP's are a complicated thing...don't get too hung up on them ..but browse through the article I attached.

Sometimes a higher fees can be better in the long run because of the usually lower interest rates. You can setup a simple spreadsheet to help you compare different banks and their fees/rates and see how long it would take for a higher fee to break even with a higher rate. Let me know if you need help throwing a spreadsheet together.

Chris,
Pre-qualification means nothing; if you are serious about buying a home you need a pre-approval. Pre-approval means that your income debt, and assets have been checked.

Scott is correct in that you have a time frame to "shop" for mortgages without hurting your credit. Note that there is a soft hit on your credit, 5 points, for applying, but as long as you stay within the shopping time frame you won't be dinged every single time you apply for a mortgage loan. Since you're shopping around, make sure to compare the YSP (yield spread premium) on each loan and that you aren't being charged junk fees. For example, loan origination fees should be 1%. My mortgage broker would be happy to review some good faith estimates as a neutal, third party to make sure that they are fair.

Please let me know if I can help or if you want a reference to some solid mortgage brokers. Good luck!! It's a GREAT time to buy.

no it wont, the credit bureas consider all inquiries for the same purpose "buying a house" as one. so your credit rating is not lowered by going to a number of different banks within say 30 days. hope this helps