How many mortgage quotes should you get before applying for a loan?

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Don’t settle for a mortgage that isn’t right for you.

Key points

  • A mortgage is a major financial obligation.
  • You should get several quotes from different lenders before applying for one.
  • Your financial situation and the type of loan you are interested in could affect the number of quotes you need to obtain.

If you are considering buying your own property, chances are you will use a mortgage to do so. Mortgages are common among homebuyers because few people can pay cash for a home, and it often doesn’t make sense due to the low interest rates and favorable terms mortgages offer.

However, you don’t want to jump into getting a loan and end up with the wrong one, because chances are your balance will be high and your repayment term will be long. To avoid a loan that becomes expensive or difficult to manage, it’s a good idea to compare prices and get several different quotes from lenders before going ahead with a loan application.

But how many mortgage quotes should you get? Here’s what you need to know to help you decide.

The minimum number of mortgage quotes to obtain before applying for a mortgage

In order to be a wise buyer when it comes to obtaining your mortgage loan, it is advisable to obtain a minimum of three quotes from different financial institutions.

Obtaining no less than three quotes can allow you to see if there is much variation in the rates and terms offered to you. It can also give you a decent selection of different loan options to choose from.

Although three quotes are a minimum, many people are better off comparing loan offers between multiple lenders. This is especially true if there is reason to suspect that it may be harder for you to get an affordable mortgage. Each lender has their own eligibility criteria and rate-setting process, so borrowers with low credit scores, small down payments, or a lot of other debt may find that certain mortgage providers are more understanding than others.

Comparing quotes from more lenders is also a good approach if you’re not sure what type of mortgage to get. For example, if you’re deciding between a conventional or FHA mortgage, you’ll probably want to get three quotes from lenders who specialize in each type of loan to really gauge your borrowing costs with each option.

How to Get Multiple Mortgage Quotes to Find the Best Deal

When getting quotes from different lenders, you should try to mix up the types of financial institutions you are considering. For example, you may want quotes from large and small banks, credit unions, and online lenders. This will allow you to better determine if a specific type of lender is best for your particular situation.

You should also ideally look for lenders who give you a quote without putting an in-depth investigation into your credit report. Although several mortgage quotes tend to be rolled into one to determine your credit score, it’s always nice not to have to worry about a lot of inquiries listed and potentially affecting your score.

The good news is that a lot of mortgage lenders have made it easy to get quotes online without your credit being impacted, making it much easier to get at least three quotes. You can usually compare rates and terms online within minutes to make sure you’re getting the best home loan for your needs.

A Historic Opportunity to Save Potentially Thousands of Dollars on Your Mortgage

Chances are interest rates won’t stay at multi-decade lows much longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger on buying a new home.

Ascent’s in-house mortgage expert recommends this company find a low rate – and in fact, he’s used them himself to refi (twice!). Click here to learn more and see your rate. While this does not influence our product opinions, we do receive compensation from partners whose offers appear here. We are by your side, always. See The Ascent’s full announcer disclosure here.

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