Can you get more than one pre-approval at a time?
When it comes time to buy a home, getting a mortgage pre-approval should be your first step. Getting a pre-approval for a mortgage means a lender has checked your information and “approved” your application to borrow up to a certain amount. With that being said a pre-approval isn’t a guarantee and you’ll still go through a qualification process that will verify all the information you’ve provided.
Recommended reading: What does getting a mortgage pre-approval do?
What happens if you’re considering multiple lenders or want to keep your options open? Can you get multiple mortgage pre-approvals at the same time?
The answer is yes!
You can have multiple pre-approvals at the same time, in fact it’s often a smart move. There is technically no limit on the number of pre-approvals you can get which makes shopping around with different lenders a no-brainer.
Here are some of the reasons you might want to get pre-approved with multiple lenders:
Comparing offers: When you go straight to your bank to get a pre-approval, there’s little incentive for them to give you the best mortgage terms. On the other hand when you shop around with a mortgage brokerage like Perch, lenders are essentially competing against each other for your mortgage. If you already have a pre-approval from one lender, you only stand to gain from shopping around and getting pre-approved with more favourable terms.
Negotiating power: When putting an offer on a home, sellers like to see that a buyer is prepared and has the proper financing to back their purchase. Having a pre-approval from multiple lenders could help you make a stronger offer on a home.
Keeping your options open: The real estate and mortgage market can be unpredictable. Whether one lender withdraws their pre-approval, or you want to get pre-approved for different terms, having alternatives ensures your home buying plans are interrupted by unforeseen setbacks. Common reasons for a lender withdrawing their mortgage offer include a secondary check where something was flagged such as undisclosed debt, or the offer expiring.
Does getting a mortgage pre-approval impact your credit score?
While there’s no limit to the amount of times you can get pre-approved, as a part of the pre-approval process lenders will perform a credit check which could impact your credit score. With that being said, this impact is minimal and is only temporary. If you already have a good credit score, getting 2 or 3 pre-approvals shouldn’t make a difference in future borrowing options.