Multiple mortgage applications

I started to apply to a second bank and found out doing that lowers your credit rating somewhat. The more places check out your credit rating, the more your credit rating is lowered.

It might be better just to go to a mortgage broker. They have a stake in the game of you getting a mortgage.

Thats not really true, unless you apply within an extended period. If several credit checks fora mortgage were done within two weeks (and in certain cases 30 days), they count as one transaction and dont do anything to your credit score. Both banks gave me a very good rate, partially because they did not have to give a cut to the broker.
So far, I have been told that having to pay two application fees are the main downside, but with the $2+M mortage, it is a small cost to ensure I get the best rate and don't run the risk of last minute rejection, slow processing, or low appraisal (can be tricky in the far northern part of Manhattan.) Any other reasons not to do it? Do I have to notify both banks?

I would definitely do multiple. Take aboutready, whose husband is an equity partner at a top law firm - they were REJECTED for a condo in Williamsburg (of all places) by the first bank they tried, even though they were able to use the windfall they received from the Peter Cooper / Stuyvesant Town settlement for a down payment.

I did this because I was concerned about getting the final approval, slow app process, and most of all, the appraisal coming in low since I waived my mortgage contingency. It sounds like you want to do it, so why not. Your credit rating will be decreased if they run the credit check at different times (if your credit is checked by multiple sources within a short period of time, it shows up as one check on your credit report or something like that).

You will have to pay for two appraisals. I considered that to by my insurance cost for waiving my mortgage contingency. Both of my appraisals came in at above the sale price, which was above the asking price.

It will be very stressful as you will be dealing with two banks, both of whom will make urgent requests for financial documents, often the same documents that you sent previously. You are supposed to tell them as a courtesy. I did not tell them initially but then told them and made it clear that the person who could get the deal done the fastest would get the mortgage.

I locked my rates about 2-4 weeks apart at the different places, so that I would have a little more leeway if things went over time. I closed right before my rate lock expired. Good luck!

Thanks sp! Y, if you had no financing contingency, it's probably a no-brainer to use several banks, the risk is too big. Did you have to pay all the applicable fees (application, transfer, etc) to both banks as well?

I would reiterate what others said. I used two and was glad that I did (because one guy didn't get me the commitment I needed on time because of an underwriting snafu). Risk is paying double fees / appraisals.

The only other thing I'd add is that if you do have a mortgage contingency and are considering walking from the contract for any reason (market crash, change in job circumstances, etc.), there is a theoretical chance that if one of the two is willing to lend you may have to proceed (or lose your deposit) if only one gets you a turn-down letter. Whereas if you only had one lender and they rejected you, you could walk free and clear...

I agree with FreebirdNYC reiterating what I said.

You have to pay both appraisals and all fees for both apps. However, I believe that the mortgage that you end up taking refunds your appraisal fee, which should be the largest fee you pay. Good luck!

Thanks everyone! Sounds like we are going to file with several lenders. Will report back if it somehow backfires, but meanwhile really appreciate the advice.

A mortgage broker can submit your application to several banks at no charge.

E.S. Funding Co.
www.esfunding.intantlender.com
Ellen Silverman
NMLS#60631

I am a Mortgage Banker with The Federal Savings Bank. We are a federally chartered bank that has relationships with investors (all the banks you are applying to & some that you're not) The benefit of working with me is if we cant fund your loan, chances are no one will. Additionally, I can provide a commitment letter during the pre-approval stage that an underwriter has review income & assets. Please let me know what I can do to help.

James Giacalone, Mortgage Banker
The Federal Savings Bank | 120 Broadway, 29th Floor, Suite #2950 | New York, NY 10271 | USA
direct: (646) 568-3644
email: jgiacalone@thefederalsavingsbank.com
web: www.thefederalsavingsbank.com/jamesgiacalone
NMLS# 482256

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Should start over with a new lender?
I was in contract for a studio, and decided to back out when a studio in the building I REALLY wanted came up a week later (cost me a lot of money to back out, but the 100k+ saving was worth it). The bank had given me a conditional approval based on the other place, and said it would be no problem switching as the new place was cheaper, and most of the work was done. Now, I get a stack of papers in the mail asking me to apply over, none of all the previously gathered info filled in, and the rate shown is .25% higher than anyone else right now. The thing is, I can never get the loan officer or his assistant to respond to the most basic question and tell me what rates are - and tell me if, in signing this, I'm stuck at that rate, and if appraisal has been done, if we are in fact starting over etc. Basically, what the state of play is.
If it really is a case of starting over, I'm thinking of switching to a mortgage broker who's been chasing me because they would appear to have a vested interest in following through.
I also have BoA contacting me but I'm reading how problematic they are (or is that par for the course with any big bank?)
By the way, I chose the bank because of free recasting. The broker said with her company - which functions as a mortgage bank, by which they would eventually sell my loan to Fannie Mae - recasting is not guaranteed.
Appreciate advice here! Closing is mid July.
Also can you get anyone to lock you on a weekend?