You’re finally ready to buy a house and think you have a mortgage lender you want to work with for your loan. Buying a home is one of the most significant decisions you can make. In working with many home buyers, there are three questions I get asked a lot during the initial home buying process.
You should absolutely shop around for an interest rate. All lenders are not created equal and will provide you with different levels of service and interest rates. Always shop around to see who can best serve your needs.
When you shop around and have multiple lenders provide pull your credit, these will show up as one inquiry if you’re shopping for a mortgage within a certain timeframe. These inquiries don’t affect your credit much and won’t stay on your report as long. See our post on pre-approval and credit.
Buyers should absolutely get underwritten by a mortgage lender, especially in a fast-moving market like San Francisco. In a competitive market, buyers compete with cash or financed offers with no contingencies. With a fully underwritten loan, the offer is almost as good as a cash offer.
You do not have to get underwritten by multiple lenders. Choose the lender that serves your needs and get underwritten with them. Once you get into contract, if your rate is no longer competitive, you can ask them to match a better rate from another institution. Often lenders that have a relationship with you will work harder to match or get close to the rate you bring to them.
If you have any questions about the home buying process, San Francisco real estate, the current housing market, or just want to catch up, please reach out. You can also find more information about buying a home on our blog and on our YouTube channel.