Can I still shop around for rates if i've gotten preapproved?

You can, but it's unfair to the lender that's already done most of the work.. You should have shopped prior to having your loan officer go through all the effort. Keep in mind, he only gets paid if the loan goes through, and he's already paid out $$ for credit reports and credit supplements... Also, a few things to note here.. The interest rate your lender puts on a pre approval is usually a "High Estimate", and not his best rate.. Because of current disclosure laws.. he can go lower, but if the rate goes up, there are additional disclosures and waiting periods that apply, so they always go with a high estimate... there is no lender out there, regardless of what someone tells you, where your pre approval is a loan commitment.. I have seen files get turned down after the file had been underwritten, loan doc's sent out, signed, and funds to close collected... the lenders are constantly checking during the loan process for inconsistencies.. IRS transcripts, and new credit reports, as well as calling your employer the last minute to verify again your employment, and income... many things can happen in the last minute that can cause a loan to get denied.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Hello,Yes, as a consumer it is your right to choose your provider and shop for your mortgage loan and terms. There is no commitment to a simple pre-approval and it's highly suggested that you shop and compare. Just make sure to never pay an application fee and do research on the Mortgage Loan Originator and company as well as comparison of terms.

Definitely .....but try to nail down the loan officer / lender as soon as possible

Sure, but I agree with William that there is a certain commitment that you've made once you get started. Really you should do that before you get started with an actual application and a pre-approval doesn't necessarily mean the lender has actually started working on your application. We offer a free one-time floatdown to help minimize the customer's inclination to go elsewhere after we get started.

PS> A preapproval is not generally a formal commitment, and wouldn't normally be unless the lender has at least collected and reviewed income and asset documents from you. Usually a preapproval is an assessment of your qualifications based on the information you've provided and a review of your credit.

Yes, you can shop around for rates after being pre-approved. However, if you have already submitted your documents to one lender and they begin working on your file that can be unfair. A tremendous amount of work goes onto processing your loan and the lender is not paid for the work until after it is funded. It is best to shop around for lenders before committing to one rather then after.