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Many home buyers in Washington get pre-approved for a mortgage loan prior to starting their housing search. This process helps you focus your search within a specific price range, while making your offer more attractive to the seller.
This guide addresses a common question relating to getting pre-approved by multiple lenders in WA.
Short answer: Yes, you can get a pre-approval from more than one mortgage company in the state of Washington. There’s no law preventing it. Ultimately, however, you’ll have to commit to one lender so you can lock in your rate and move forward with the process.
A mortgage pre-approval in WA is exactly what it sounds like. It’s a preliminary, upfront approval based on a borrower’s financial qualifications.
But it’s not a final approval. That comes later, once the home buyer has found a home, signed a purchase agreement, and completed the mortgage underwriting process.
Basically, a pre-approval says to the world: “This person has been financially evaluated by a mortgage lender and will likely receive a final approval based on the preliminary findings.”
When financial advisors recommend “shopping around” for a mortgage loan, they’re describing a situation where you get pre-approved by multiple lenders in Washington.
In fact, it may be a good idea to compare mortgage lenders in Washington State. Gathering offers from multiple mortgage providers could help you find the best rates and terms for a home loan. It allows you to compare interest rates, maximum loan amounts, origination fees, and other closing costs.
That’s the upside. But there are some potential downsides to consider as well:
The impact of multiple pre-approvals on your credit score should be minimal. If you apply for loans through multiple lenders within a short period of time, it shouldn’t have much effect on your credit health. But if you spread it out and get pre-approved many times over several months, your credit score could drop from all of the inquiries.
In Washington, the mortgage pre-approval process requires multiple steps and a lot of documents. So it could take several days, or even longer, to complete the process and get a pre-approval letter.
If you complete the process several times to get pre-approved by many different lenders, you might end up delaying your home search. This could present a problem if home prices and/or mortgage rates are currently rising at the time you apply.
Whether you apply for pre-approval through one lender or several, the process typically works the same. So, how does mortgage pre-approval work in Washington? Here are some things to expect:
We mentioned credit scores earlier. But it’s an important subject that deserves a closer look.
If you apply for mortgage quotes or get pre-approved through multiple lenders, you might end up with an equal number of credit inquiries. This in turn could affect your credit score, especially if those “credit pulls” occur over several weeks or months.
Credit scoring models like FICO usually treat multiple but similar inquiries as a single inquiry, but only if they occur within a 45-day period.
According to the credit reporting bureau TransUnion:
“FICO treats multiple inquiries in a similar way, but you’d need to do it within 45 days for it to count as only one inquiry. By limiting your loan applications to a short window, you can reduce the negative impact to your credit score.”
When shopping for a mortgage, comparing lenders ensures you secure the best rates, terms, and overall value for your loan. Here’s a detailed guide to comparing mortgage lenders:
Evaluate Interest Rates
Analyze Loan Terms
Assess Lender Fees
Common fees to compare include:
Check for Rate Lock Options
Some lenders allow you to “lock in” an interest rate during pre-approval. This can be crucial if rates are rising. Compare the terms and duration of rate locks to minimize risks.
Compare Loan Programs
Some lenders specialize in specific programs or offer flexibility:
Look at Prepayment Penalties and Other Terms
Some lenders charge a penalty for paying off your loan early. Ensure you understand these terms and any other restrictions.
Get Multiple Loan Estimates
Submit applications to at least 3–5 lenders within a 45-day window to compare quotes without significantly affecting your credit score.
There are different credit scoring models in use today, but FICO is one of the most common products used by mortgage lenders in WA.
If you live in Washington State and have questions about the pre-approval process, please contact our staff. Sammamish Mortgage offers a wide variety of loan options, transparent pricing, and a highly efficient workflow. Visit our website to get an instant rate quote, or call our office to have your questions answered. We look forward to helping you!
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.