Is it OK to work with two mortgage brokers? (2024)

Is it OK to work with two mortgage brokers?

While it makes sense to shop around for the best rates — can you apply for a mortgage with more than one lender to make sure you're getting the best possible deal? Yes, you can apply with as many lenders as you want, and there's no penalty for applying with more than one.

Is it OK to use 2 mortgage brokers?

The answer to this question is yes you can use multiple brokers to act on your behalf, but the problem is, it might not help you get the mortgage you want and, in some cases, can prevent you from getting a mortgage altogether.

Is it okay to talk to multiple brokers?

I would say the brokers spend a significant amount of time working on your file usually so can get a bit annoyed with this type of thing. Initial chats are ok to see who gives you more confidence and options. But I wouldn't be sharing financials with multiple brokers. If you do then be transparent with them.

Should I shop different mortgage brokers?

This can help you uncover the ideal combination of loan type, interest rate and fees that meets your needs. Comparison-shopping pays off, as well. In fact, applying with multiple mortgage lenders helps you save money — as much as $1,200 a year, according to Freddie Mac research.

Is it OK to get preapproved by multiple lenders?

The answer is yes. You can have multiple pre-approvals at the same time, and in fact, it's often a smart move done by savvy first-time home buyers and real estate investors. There is technically no limit on the number of pre-approvals you can get which makes shopping around with different lenders a no-brainer.

Can mortgage brokers get you a bigger mortgage?

Mortgage brokers may be able to help you get a bigger mortgage, as they can search from a wide range of deals including higher lending schemes to find all the products which you are eligible for.

Do all mortgage brokers have access to the same deals?

Your brokers might have access to different mortgage deals from one another, meaning that the best deal with one broker might not be the best deal with another. This could overcomplicate the process and make it harder for you to make a decision.

Can there be multiple brokers?

Yes, you can use different brokers for each stock trade, as long as you have an account with each broker and you comply with their terms and conditions. However, there are some pros and cons of using multiple brokers that you should consider before doing so.

Does it cost money to talk to a broker?

This breakdown will tell you everything you need to know. The first thing you need to know about mortgage broker fees is that most brokers don't charge them so you usually won't have to pay a penny. Some charge a fee for service, as detailed in their credit assistance quote.

When should you start talking to a broker?

The short answer: as soon as you've got a property goal. The longer answer: whether you're scoping out your options, have a long-distance goal in mind or you're ready to enter the property market (like, yesterday)… chances are you'll benefit from having a chat with a mortgage broker.

Is it OK to change mortgage broker?

If after chatting to them you still don't feel satisfied with the service they offer, you're more than welcome to switch mortgage brokers. Just be aware of any possible risks that may come from switching brokers, especially if you've not yet received final approval for your home loan.

What is a disadvantage of a mortgage broker?

Disadvantages of Using a Mortgage Broker

The compensation varies from lender to lender; thus, the broker can source a deal that boosts their compensation. The fees that brokers receive can also be paid by the client. It can mean that the loan will be expensive for the client. Some lenders do not make use of brokers.

Is it best to talk to mortgage broker or bank?

Whether it's better to work with a mortgage broker or get a home loan directly from a bank depends on your financial situation and your preferences. For example, if you might have trouble qualifying for a mortgage or you place a high value on convenience, a mortgage broker may be worthwhile for you.

Can you work with two lenders at the same time?

Key Takeaways. Applying to multiple lenders allows borrowers to pit one lender against another to get a better rate or deal. Applying to multiple lenders lets you compare rates and fees, but it can impact your credit report and score due to multiple credit inquiries.

Does getting pre-approved hurt your credit?

No—they may involve a soft inquiry, which won't affect your credit score. If you are pre-approved for a specific card you will receive an offer. The offer itself doesn't generate a hard inquiry, so don't worry—just because you have the offer doesn't mean you've hurt your score.

How long are pre approvals good for?

Most lenders will provide a mortgage preapproval letter that expires within 60 to 90 days. Not only can interest rates change during the preapproval window, but so can your financial situation. Either can affect your maximum borrowing potential, which is why lenders don't want to take on the risk beyond 90 days.

How much do top mortgage brokers make?

Why can some mortgage brokers get better rates?

Even so, another mortgage broker may have access to a lower wholesale price because of their lender relationships. Even though both are giving you their best offers, one mortgage broker's pricing can beat out another's because of their strategic relationships and industry experience.

Can a mortgage broker get you a better interest rate?

Many individuals prefer to work with a broker regardless of their situation because it gets them access to lenders they wouldn't think to look for. Mortgage brokers may also be able to help loan seekers qualify for a lower interest rate than most of the commercial loans offer.

Should I get a second mortgage with the same lender?

A second mortgage provides a way to access the equity in your home. Interest rates are lower than credit cards and personal loans. You can use the funds for any reason, whether improving your home, taking a vacation or paying for a wedding. You can use any lender, even if it's not the same as your primary mortgage.

Is it better to have 2 mortgages or 1?

Second mortgages often come with higher interest rates than first ones do. This means higher costs over time. The reason is simple: lenders see them as more risky because they are secondary in line for repayment if foreclosure occurs.

Can you have two houses with two mortgages?

The Bottom Line: You Can Have Multiple Mortgages

This may be a great option if you have a real estate investment strategy focused on owning multiple properties. However, it's also important to understand the added financial responsibilities that come with having more than one home loan.