Excessive Home Mortgage Shopping
“When It Comes To Home Mortgage Shopping, It Can Quickly Be Taken Too Far”
It’s an accepted practice to shop around for the best mortgage rages and terms. Lenders are used to having to compete for business and the process can provide benefits that you would not otherwise be able to uncover.
But shopping can easily be taken too far when someone starts to work with several brokers at the same time. The borrower’s theory is that this will likely yield an even better result, but this isn’t necessarily the case.
Here’s why.
First, the more applications you have on the go, the more times you credit report is going to be accessed which isn’t going to help your credit score.
Second, the more brokers you’re working with, the more likely the same deal is going to get on the same lender’s desk. If there’s too much confusion as to who you’re dealing with, an otherwise good mortgage opportunity may pass you by when the lender backs away from the deal.
Third, despite what you think, mortgage brokers aren’t completely clueless to this type of maneuver. It can become pretty clear when someone is shopping around a deal excessively, so in order to take you out of the market, you may get promised things that can’t be delivered by the more aggressive brokers, leaving you without the type of house mortgage you’re looking for, in the time its required.
Fourth, unnecessarily taking up the time of several people that you don’t have any intention to work with is frankly bad form and is not something that anyone appreciates.
I have no problem with people spending time with a broker to determine who they want to work with. But at some point, the individual needs to make a decision and choose who will represent them versus having a number of people working on the same deal for nothing and potentially screwing up good potential options in the process.
There are more negatives here than positives. If you want to shop the market, there is a right way and a wrong way to do it.
I welcome the opportunity to help you in any way I can with your home mortgage needs.
But if you plan on getting other brokers to do the same thing without disclosing your true intentions to all those involved, please don’t call as I’m not interested in this sort of run around that frankly isn’t likely going to help you anyway.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel