If the borrower is pre-qualified and looking at multiple houses, do they have to have multiple applications?

No, and in fact if they are pre-qualified for a loan amount they can fill out as many applications as they choose to. If they want to go to four different lenders they can do that. If they are looking at multiple properties the pre-qualification should tell them if they’re qualified to buy the property in question or if their credit would be enough to get a loan for it. But there shouldn’t be a necessity to gather more than one loan application. Nothing in this rule requires borrowers or debtors to go out and shop. In fact, the Bureau was stunned to find out in their own data inquiry that about 65% of all borrowers never went to more than one lender. That was big news to them. So there is no obligation to do it, but it certainly is an option for the borrower.

Answered By: Charles Cain