This is a quick one, borrowed from my FAQ post.

If you are a shopper, this might be a good time to be upfront with everyone.

"hey, I'm getting multiple bids from multiple lenders." Just so they know. Loan officers get really offended if you don't go with them. Every loan officer thinks they're the best loan officer, and deciding not to work with one is a blow to their ego... or commission.

You'll see their true colors once you say that.

I personally don't know if I'd shop for the best rate. It really depends on the market I'm looking at. If the market is hot, homes are getting scooped up at above asking price, with multiple offers per house, it might make sense to go with a lender that can give you a better chance at winning a bidding war.

Example: one lender provides a 'close on time guarantee' a 'pre-approval guarantee' and calls the listing agent the minute you make an offer to further endorse you as a great buyer.

The other lender is only available 9-5, M-F but rarely answers the phone and operates mostly through email.

Your offer from the first lender will stand out way more than an offer from the second.

A listing agent and seller might go for the offer with the highest likelihood of success. You might just beat out a higher offer. Or rather than accept the highest offer, they could approach your rock solid profile and say "if you can match this offer, you have a deal."

Your lender choice can affect that.

If the rate is higher, but it gives a higher likelihood of success, would you take it?

If this is what you're after, then you don't need to apply with multiple lenders. You need to interview them.

If you're just looking for the best rate, then yes, apply with more than one lender. Apply with a local credit union, an online lender, and a local mortgage broker.

Here's a post on how I would go about shopping and negotiating for the best rate.

Here's an explanation from Experian that tells you how multiple pulls for the same product affects your score.