Q. I am looking for a home loan and there are a few different loan products I am interested in. Can I apply for a home loan with multiple lenders?
A. It is great that you are shopping around and comparing different options, this will give you a better chance at finding the best deal. However, you need to be careful when it comes time to applying for a home loan.
When lenders are assessing your application, they will request a copy of your credit report. Each enquiry that is made will be recorded on your credit report. This applies to all credit enquiries, including car loans, personal loans, store cards or even interest free facilities. Lenders do not like to see multiple enquiries on a credit report as it may look like you have had trouble getting loans in the past.
So, if you are making enquiries with different lenders, make sure you ask when they will be conducting a credit enquiry. You should only allow a credit enquiry if you are serious about taking out a home loan with that lender.