Belt Auction

Can I put a bid on a house from one lender and if I find a better lender go with that bank?

Meaning if I have my agent write a contract on the house based on my pre-approval letter I still can move on to another lender?

Public Comments

1. Yes, you can shop around for lenders with a better interest rate. Usually, you need to be preapproved before you put a bid on a house and then you place the bid with the realtors. Once your bid is accepted then you proceed with getting the actual loan. Hope this helps!!
2. I'm not sure if you signed an agreement already with this lender before putting in a bid on that house. If you rec'd a pre-approved letter from one lender and you went in and put a bid on a home... then you're ok to leave that lender for a better lender. You are not bound with anyone unless you've signed a contract or agreement with them. If you signed an agreement with a lender then you have 3 days to cancel... You can actually write a letter informing them that you want out of the contract.
3. As a previous Loan Originator, you are not obligated to work with the lender until you sign a 1008. Usually with several other documents that deal with US Patriot Act, and RESPA and Fair Credit ACT. Other than that, shop as much as you want for lenders. One thing that lenders don't advertise is, credit agencies consider it to be one hit against your credit if you are shopping for a mortgage. In a time frame of 2 weeks. Hope this helps.