Is it Bad to Apply for Multiple Home Loans?
Applying for home loans affects your credit history and credit score. Every time you apply for a loan, the lender runs a credit check on you. This check shows up on your credit file for all future lenders to see. Multiple reviews in a short period of time can cause lenders to classify you as a risky borrower. In addition, these numerous checks can make it more difficult for you to secure a home loan in the future.
What should I do instead of applying for multiple home loans?
Before applying for multiple home loans with various lenders, you need to know how large a loan you can afford to pay back. The loan size you can afford affects which loan options are available to you and which lenders will work with you. In addition, you also need to understand the different lenders and their criteria for borrowers. If you don’t match their standards, you shouldn’t apply for a loan with them. Finally, comparing interest rates is also beneficial. You want to apply for a loan with competitive interest rates and features that benefit you.
What’s the best way to do that?
Work with a mortgage broker. Mortgage brokers understand the lending process and are familiar with lenders and their offerings. They can help you determine how big of a loan you can afford. In addition, they can help you find a lender whose borrowing criteria you meet. Matching a lender’s criteria improves your chances of securing a home loan.
If you are looking for a mortgage broker, contact Mortgage House today. Our team of brokers specialise in home loans. As a non-bank lender, we may be able to offer you a home loan with better interest rates than traditional lenders.