How many pre-approvals should I get?
When it comes to big purchases, getting the best value for your money is key. Whether you're planning on a major purchase like a car or hiring a professional for a large project, it’s always a smart move to comparison shop and gather multiple bids. Comparing your options not only helps you make an informed decision—it’s a tried-and-true way to get the most for your investment.
What you may not know is that you can go comparison shopping when you’re getting pre-approved for a mortgage as well. Doing so will help you not only find the best rate but also find the lender that’s right for you. You can get started by getting pre-approved with Rate right now, then read on to find out more about this important step.
Can you get pre-approved from multiple lenders?
The truth is, there is nothing stopping you from getting more than one pre-approval letter. How many pre-approvals should you get? According to the Consumer Financial Protection Bureau (CFPB), you should compare at least three different lenders when applying for a mortgage.
Every mortgage lender offers a unique loan package, with differences in interest rates, loan amounts, origination fees and other upfront closing costs. These variations can have a big impact on your monthly payment and the total cost of your loan. By reaching out to at least three different lenders, you’ll get a clearer picture of what’s available and how each offer stacks up.
Getting pre-approved by multiple lenders allows you to compare rates and terms side by side, helping you identify the most affordable loan for your needs. Taking this extra step ensures you’re getting the best deal possible—because when it comes to buying a home, even a small difference can lead to big savings over time.
In addition, it gives you a sense of which lender you feel most comfortable working with. Each lender has its own approach, from customer service to loan terms to ease of application process and you’ll be able to see firsthand how responsive and transparent they are. By comparing rates, fees and overall experiences, you can confidently choose the lender that best fits your needs and makes you feel supported throughout your homebuying journey.
Rate’s PowerBid Approval* is a great preapproval option that could supercharge your offer, giving you a stronger edge when competing in a hot market.
Will multiple applications affect my credit?
When you apply for pre-approval, some lenders perform a “hard credit inquiry,” sometimes called a hard pull, which might lower your credit score slightly—usually by less than 5 points on your FICO score. The good news is that if you’re shopping around and get pre-approved by multiple lenders within a short timeframe (typically a few weeks), credit scoring models will count those inquiries as a single event. This helps minimize any impact on your score while you explore your options.
If your pre-approvals are spread out over a longer period, however, each hard inquiry could cause small, incremental dips in your credit score. Some lenders may use a “soft credit inquiry,” or soft pull, during the pre-approval process, which doesn’t affect your score at all. Keep in mind, though, a hard credit check will still happen when you officially apply for your mortgage loan.
Can I get approved for different amounts?
If you seek out pre-approval letters from different lenders, it’s likely that you will get approved for different amounts. This difference will stem from how different lenders choose to structure their loans, the loan products they have available to them and how they evaluate you as a borrower. This is another reason why you may want to get pre-approvals from different lenders. You may get pre-approved for a larger loan and that could make your budget bigger.
It’s important to remember that just because you’re pre-approved for a certain amount of loan, doesn’t mean that you should use the entire amount. The home you buy should fit into a budget that you’re comfortable with, because you’re the one who’s going to be making those monthly payments.
How can I start the pre-approval process?
Getting pre-approved is an easy and straightforward process. Our digital mortgage can help make it even simpler by automating much of the tasks and allowing you to upload your documents to your portal.
Step 1: Determine Your Budget
Decide how much you can afford, including your down payment
Step 2: Check Your Credit
Review your credit reports for errors and to see if you need to improve your credit score.
Step 3: Gather Your Documents
Collect pay stubs, tax returns, bank statements and more.
Step 4: Apply for Pre-approval
With our digital mortgage, it takes just 10-15 minutes on your phone or computer.
Step 5: Get Your Pre-approval Letter
If approved, you’ll receive a letter with your loan amount and terms—essential for working with agents and sellers.
Buying a home is one of the biggest financial decisions you’ll ever make, so it’s important to do your homework and set yourself up for success. Applying for more than one pre-approval gives you the best chance to come out with a loan that fits your budget and sets you up for long-term stability in your new home. It’s a simple step that can make a big difference in your future, helping you avoid unnecessary stress and save money.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
Savings, if any, vary based on the consumer’s credit profile, interest rate availability and other factors. Contact Rate for current rates. Restrictions apply.
*PowerBid Approval (the “Approval”) is contingent upon receipt of executed sales contract, an acceptable appraisal supporting value, valid hazard insurance policy, and a re-review of your financial condition. Rate reserves the right to revoke this Approval at any time if there is a change in your financial condition or credit history which would impair your ability to repay this obligation and/or if any information contained your application is untrue, incomplete or inaccurate. Receipt of an application does not represent an approval for financing or interest rate guarantee. Not all applicants will be approved for financing. Restrictions may apply, contact Rate for current rates and for more information.