https://www.youtube.com/watch?v=VbFJqd9mA_M&t=3s
Yes and no, so let's talk about that. First of all, if you find value in this channel, if it's helped you, subscribe. If you like it, hit like. If you dislike it, hit dislike. Drop a comment, let me know you're alive, okay?
So, can you work with two lenders at the same time? I get this question a lot. During the pre-approval process. Yeah, sure, totally, okay? I don't think it's a bad idea to have at least two lenders. Let me make that clear. If you're working with seven, eight, or nine lenders, we're not going to take you seriously because the odds are like, it's impossible to compare that many, first of all, and secondly, you're going to end up with whoever the sweetest sweet talker is. And I am going to tell you, I will never win that war because I'm going to be super transparent, and I'm going to do exactly what I say. There are a lot of people in this industry that will lie to your face, promise you something they can't deliver, and feel zero remorse, okay? So, seven to nine lenders, most legit lenders are not going to take you seriously. They are not going to fight hard for your business because we all know we're going to lose to the snake oil salesman, just being blunt.
Two to three people that you're comparing, I think that's fair, okay? Do you have to do that? No, guys, if you like your lender, if you trust your lender, just be with your lender, okay? You know, if you're like, "I just want to compare rates," ask another lender what their rates are like. You can do that without having to do full approval with another lender, okay? And I say that because sometimes you guys will be like, "Jen, I love you. I don't even want to work with another lender," but I told you to, and then they put themselves through this torture. They still end up with me. It was never even necessary, right?
The reason why I'm telling you guys to compare multiple lenders is because there's a lot of lenders that don't know how to close deals, and also there's a lot of lenders that are going to you about rates. If you're working with a good lender that you like, you do not have to torture yourself, okay? So, let's start there. But let's say you're like, "I want to compare a few." Okay, cool. So, during the pre-approval process, I think it's fair to get fully pre-approved by two, two I would say two to three, okay?
Now, here's the thing. A lot of times, people go, "I'll just go out and fill out a bunch of applications and see who comes back best." Oh, guys, it's so much more than that. Who's the lender? Who's the actual lender doing your loan? What's their experience? What's their ability to close? How knowledgeable are they? Are they watching the market? Can they renegotiate your rate? Can they sometimes lock your rate while you shop? What are they bringing to the table? You know, because sometimes I'll be talking to people, and they'll be like, "Well, I'm talking to this lender and this lender." I'm like, "Cool, are they fully underwriting you?" No. "Have they given you a loan summary?" No. "Will they talk to you about rates?" No. Why the hell are they my competition? Why? Like, wait a long summary, we do a full underwrite, we talk to you guys about rates, we'll walk you while you shop. That's not a fair fight. That's not a comparison, right? Just saying, just saying.
So, look, two to three is totally fair during the pre-approval process. A lot of times, it's going to be because you have a realtor that's really pushing you to use a local lender or someone they prefer. Does it hurt to get qualified with that person? No. I mean, I don't think it does, and if you like that person and that person's offering you a good deal, cool, it's cool to work with them, okay? Now, if you don't like them and you don't feel comfortable with them, should you use them just because your real estate agent says they're great? Absolutely not. This is your decision, okay? And personally, I think sometimes it can be good if there's a little separation between the realtor and the lender. Moving on.
Two to three pre-approval.
Now, where does it get messy? When you're in contract, okay? This is the one that's really tough for lenders. When you're in contract, meaning the seller's accepted your offer, you need to choose. And sometimes people are like, "Well, I'm not ready to choose yet." You know, and what I'll get is like, "Well, have you totally locked? We'll get everything to you, we'll order the appraisal." And I'll hear, "Well, he thinks he can give me a better rate next week." So, I need to wait and see if he can.
Guys, if you want to play these Candyland games of maybe next week, I'll do a decent job, just go work with them, right? You shouldn't have when you're in contract, you need to pick a lender. It's not time to have a lender doing all the work, another lender playing games, messing with your head, because that's what it is. Like, I mean, if someone's in a 30-day close, and another lender is kicking my butt on day one, am I gonna say, "Oh, well, call me in a week, and I'll see if I can do better?" No. I'm gonna say, "Hey, they kicked my butt fair and square. If you're comfortable with them, go for it. And then if anything goes sideways, I'm here for you." Okay? That's the way it should be done.
And the reason I do that is this. If you have a 30-day close, if you're waiting to see if I do something magical the next week, it is screwing up your head, right? It's adding a whole new layer of stress you don't need. It is adding a layer of risk to your transaction that you don't need. As I film this, we have a buyer who's sweetheart and lovely, and the Builder's lender is just doing the biggest gaslight game in history. We're pretty darn close to being ready to close, but he keeps on coming in. "Oh, what about this? What about that? What about this?" And he's a snake oil salesman. Instead of just saying, "My booty was kicked fair and square," he just keeps on coming in and gaslighting, and just the stress and the drama that it's bringing to this buyer, it's so unnecessary. And I don't want this to happen to you guys. This stuff can be cut at the base, day one that you're in contract.
Day one that you're in contract, that is when you're going to reach out to those two, two to three lenders that you really like, that you looked up reviews. They'd better have reviews. That they all fully underwrote you, they all did loan summaries and talked to about closing costs, right? Because we need to compare apples to apples. We're not going to compare an apple to a broken banana in a rotten orange. And if they're not doing the same work as the other lender, they're broad and orange, right? So, you got three strong lenders, okay?
Day one of contract, do not send them the contract. But say, "Hey, look, I'm in contract. I am comparing you with two other lenders. Can you advise on what your interest rate would be? You know, what would your fee be to do the loan? And in terms of points, what are my options?" That's it. That's it, okay? And if we have someone say that to us, you know, we'll be like, "Okay." I'll usually shoot an email that says, "This is what we're looking at." And if you want a loan estimate, we will want the contract before we send out a loan estimate. And the reason we want the contract is we have to make sure that like, if you're paying something that we're not aware of, we have to put it in the loan estimate. Otherwise, if you then do proceed with us and we don't have it in there, we have to pay it, which is a problem. It's called a tolerance cure. So, lenders often will want that contract to give you a real loan estimate. I know I do because I know how loan estimates work, you know, and a truly binding loan estimate, the real deal, we will need to see the contract for that. Okay?
But if you've got three really strong lenders, you can easily determine, you know, where they are with rates and fees. Okay? Also, who's going to close the deal on time? That's the other thing people don't take into consideration. You may go, "Oh, well, this one lender said they could close in 15 days, right? Conventional loans, we can close those real fast, okay? This other lender is at 30. That one's at 45. Well, how long is your escrow, right? Because if you wrote a 15-day close and those guys came can't do it, they're already dead in the water. Comparison's over, okay? You know, with VA, VA, we can easily close in under 30 days, no problem. Usually 25 and under, but it does depend on the appraiser, okay? You know, if someone's at 45, 60 days, that's probably going to be longer than your contract. Out of the water, okay?
So, here's the thing. Does it hurt to get pre-approved by a couple lenders? No. But I want you to be mindful and make sure that you're comparing apples, right? I really want you to visualize this. There's a gorgeous, juicy apple. There's a rotten banana. And there's a rotten orange that has mold going through it. You can't compare those to the gorgeous apple. You really can't. I know I'm getting so stupid with analogies. Anyways, the whole point is use a real comparison. And when you get into contract, day one, pick the lender. Close your eyes, put on the blinders, you're married, okay? Now, let's say you didn't do any of these comparison things, and you went with a lender, and you are now going, "Oh my God, I am being ripped off." Okay? So, you didn't do anything. You just went blindly with a lender without doing any research, and you don't even like them, and now you're concerned. Can you get out? Yes, guys, you can get out. You're not married to a lender, okay? The key is you don't want to be in a love triangle during the mortgage process. So, sometimes people are like, "Well, I want both of you guys to do my loan, and then I'll pick at the end." No, not the way it works. Like, you can't even do it. Title companies are not going to give out everything the lenders need to both people. It's a no, okay? Now, if you guys moved forward with the lender, you never did comparisons, and you are now going, "Oh my God, I am in hell," okay? You are being ripped off, you are being abused, you know, definitely reach out, get a second opinion. Certain loans, it's really easy to save you towards the end, you know? A conventional loan with like eight days to close, probably not because we're probably going to need a new appraisal. VA, you know, we still have to meet all the guidelines, but 10 days, totally because we can just transfer the appraisal from one lender to another, same with FHA.
So, overall, can you work with two lenders at the same time pre-approval time? Yes, once you're in contract, choose if you've made, if you've picked a lender and never compared, and now you're in hell, can you get away from them? Yes, but you need to make sure that you're getting into a better situation and that they can still close on time. If it's going to be a situation where you can't close on time and you're truly in an abusive lender situation, make sure you talk to your realtor about talking to the listing agent to get an extension and approving the switch.
So, I hope this video was helpful. As always, questions and comments, please feel free to reach out. I am licensed in 48 states, everywhere but Rhode Island and Utah, to help you with loans. I have a great team that actually really loves doing this, as do I, and we are here to support you guys every step of the way.