How Many Mortgage Quotes Should You Get Before Applying for a Loan?

Don't settle for a mortgage that's not right for you.

If you are going to purchase a property of your own, it's extremely likely you'll be using a mortgage in order to do it. Mortgage loans are common among home buyers because few people can pay cash outright for a home, and doing so often doesn't make sense due to the low interest rates and favorable terms that mortgages offer.

You don't want to jump into getting a loan and end up with the wrong one, though, since chances are your balance will be high and your repayment time will be long. To avoid a loan that's expensive, or that becomes a pain to deal with, it's a good idea to comparison shop and get several different quotes from lenders before moving forward with actually applying to borrow.

But just 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 get before applying for a home loan

In order to be a smart shopper when it comes to getting your mortgage, it's a good idea to get a minimum of three quotes from different financial institutions.

Getting no fewer than three quotes can enable you to see if there's much variation in the rates and terms you are being offered. It can also give you a decent selection of different loan options to choose from.

While three quotes is a minimum, many people would do better to compare loan offers among more lenders. This is especially true if there's reason to suspect it may be more difficult for you to get an affordable mortgage. Each lender has their own qualifying requirements and their own process for setting rates, so borrowers with low credit scores, small down payments, or lots of other debt may find some mortgage providers to be more understanding than others.

Comparing quotes among a broader number of lenders is also a good approach if you aren't sure what type of mortgage to get. For example, if you're deciding between a conventional or FHA mortgage, you'd likely want to get three quotes from lenders specializing in each loan type to truly gauge what your borrowing costs would be with each option.

How to get multiple mortgage quotes to find the best deal

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

You should also ideally look for lenders that give you a quote without putting a hard inquiry on your credit record. While multiple mortgage quotes tend to be grouped together as one for purposes of determining your credit score, it's still nice not to have to worry about many inquiries being listed and potentially affecting your score.

The good news is, a huge number of mortgage lenders have made it quite easy to get quotes online without your credit being impacted, which makes it much easier to ensure you're getting at least three quotes. You can usually compare rates and terms online in a matter of a few minutes to make absolutely certain you're getting the best home loan for your needs.