When buying a home, securing a mortgage preapproval is a critical step that demonstrates your seriousness as a buyer and clarifies your financial boundaries. While obtaining just one preapproval might seem sufficient, many homebuyers are discovering the advantages of getting preapproved by multiple lenders. A recent Zillow study revealed that 32% of homebuyers pursue more than one preapproval, and the benefits of doing so are compelling.

Compare Rates and Terms

The primary reason to seek multiple preapprovals is to shop around for the best mortgage rates and terms. Lenders often offer varying combinations of interest rates, closing costs, and loan structures. Some might provide lower rates with higher upfront fees, while others may waive fees but charge a slightly higher interest rate. By comparing these options, you can identify the mortgage that aligns best with your long-term financial goals.

Strengthen Negotiating Power

When you have multiple preapprovals, lenders are more motivated to offer you competitive terms. If a lender knows they’re competing for your business, they may provide lower rates or additional perks to win you over. This puts you in a stronger position when negotiating your final mortgage terms, potentially saving you thousands of dollars over the life of the loan.

Diversify Lender Options

Different types of lenders—big banks, online lenders, and credit unions—each have their own advantages. By getting preapproved through a mix of these institutions, you gain insights into which lender might best suit your needs. Some buyers prefer the personalized service of a local credit union, while others are drawn to the streamlined processes of online lenders. Exploring diverse options ensures you’re making an informed decision.

Leverage Incentives

Many lenders offer incentives to attract borrowers during the preapproval process. These perks might include locking in your interest rate, reducing fees, or providing other cost-saving benefits. According to Zillow, 25% of buyers who pursued multiple preapprovals did so to take advantage of such offers. Rate locks, in particular, can shield you from rising interest rates while you search for the perfect home.

Gain a Competitive Edge

In a competitive housing market, having multiple preapprovals can make your offer more attractive to sellers. Some sellers view buyers with multiple preapprovals as more reliable, knowing they have backup options should one lender withdraw their approval. Additionally, if a seller requests multiple preapprovals, you’ll already have the necessary documentation in hand to meet their requirements.

Account for Financial Changes

Life events, such as a promotion, job loss, or the ability to make a larger down payment, can impact your mortgage eligibility. If your financial situation changes significantly after your initial preapproval, obtaining updated preapprovals ensures your maximum loan amount reflects your current circumstances. This can help avoid surprises later in the buying process.

Potential Downsides to Consider

While there are clear benefits to multiple preapprovals, there are some potential drawbacks. Each preapproval involves a credit check, which can slightly lower your credit score. However, credit inquiries made within a 30-day window are typically counted as a single inquiry, minimizing their impact. Additionally, preapproval letters are generally valid for only 90 days, so if your home search extends beyond that timeframe, you may need to reapply, which could lead to further credit checks.

The Bottom Line

Getting preapproved by multiple lenders can provide significant advantages, from securing better rates to enhancing your negotiating power. While it’s essential to consider the impact on your credit and the validity of preapproval letters, the benefits often outweigh the drawbacks. By exploring your options and staying informed, you can approach the homebuying process with confidence and secure a mortgage that works best for your needs.

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When buying a home, the terms prequalified and preapproved are often used interchangeably, but they have distinct meanings.

Prequalification vs. Preapproval

Prequalification is an informal initial step that gives potential homebuyers an idea of what they might be able to afford. It typically involves self-reported financial information and can be done online or over the phone. In contrast, preapproval is a more detailed process that requires lenders to thoroughly review your financial situation.

After this review, you’ll receive a letter stating you’ve been preapproved for a mortgage up to a certain amount. While it’s not a final commitment, it shows sellers that you’re serious about purchasing a home.

What is Prequalification?

Prequalification helps homebuyers determine a rough budget for house hunting. The process involves providing income information and possibly undergoing a soft credit check, which doesn’t affect your credit score. Based on this information, lenders give a general estimate of how much you might be approved for.

The process is simple—no mortgage application, fees, or financial documentation is needed. Prequalification can be done online and serves as a good starting point for understanding your potential buying power.

A Zillow survey found that about 27% of prospective buyers who haven’t started working with an agent have been prequalified. While prequalification doesn’t guarantee approval for a specific loan amount, it can help buyers narrow their options and begin discussions with lenders.

After prequalification, buyers usually receive a letter that can be shared with agents or sellers as proof they’re engaging with a lender.

What is Preapproval?

Preapproval comes after prequalification and is a more formal step. It involves filling out a mortgage application, providing financial documentation (such as bank statements and paystubs), and undergoing a hard credit check.

According to Bank of America, “preapproval is as close as you can get to confirming your creditworthiness without having a purchase contract in place.” Once preapproved, you’ll receive a letter indicating the maximum loan amount you qualify for. While it’s not a firm commitment, it typically lasts up to 90 days, depending on the lender.

Preapproval shows sellers you’re serious about purchasing, which is an advantage in a competitive market. According to Zillow’s 2022 Consumer Housing Trends Report, 85% of sellers prefer offers from preapproved buyers. Many real estate agents also favor showing homes to buyers with preapproval letters.

You can get preapproved with more than one lender, which may help you secure a better deal. Research from Freddie Mac found that obtaining multiple quotes could save buyers up to $1,200 annually. However, multiple mortgage applications within a short time frame may impact your credit score.

When to Get Prequalified or Preapproved

If you’re just beginning to consider buying a home, prequalification is a simple first step. It offers a quick, hassle-free overview of your borrowing potential.

If you’re ready to make a purchase, it might be better to skip prequalification and proceed directly to preapproval. Keep in mind that preapproval letters have expiration dates, so it’s best to obtain one when you’re prepared to start house hunting and make an offer.

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While kitchen technology continues to advance with the rise of AI and smart appliances, some of the most popular design trends in 2024 have a nostalgic twist. From retro tiles to classic flooring, homeowners are embracing a vintage vibe, even as they incorporate modern functionality. We spoke with several architects and designers to discover which trends are making waves in kitchens this year.

Linoleum’s Comeback: A Blast from the Past

Surprisingly, linoleum is making a strong return in 2024. Known for its durability and ease of cleaning, linoleum is no longer confined to history or retro Instagram pages like @cheapoldhouses. According to Leah Ring, designer at Another Human in Los Angeles, linoleum has maintained its popularity for good reason. “Linoleum offers endless options in color and is an eco-friendly choice,” she says, noting that it’s biodegradable and recyclable, unlike vinyl flooring. Ring has noticed clients becoming more adventurous with bold colors in their kitchens, incorporating hues like purple and green linoleum. For many, the kitchen remains a personal, private space, and homeowners are eager to personalize it with colors that bring them joy.

Induction Cooktops: Modern Efficiency Meets Green Living

While gas stoves have long been a staple in kitchens, the shift towards sustainability is driving a growing interest in induction cooktops. Isaac Resnikoff, of Project Room in Los Angeles, is a firm advocate of this trend. “Once you get past the attachment to gas, you realize induction is faster, safer, and greener,” he says. Having used an induction stove for four years, he’s convinced of its superior performance and environmental benefits. As the push for decarbonization continues, induction cooktops are becoming a gateway for homeowners to adopt other energy-efficient appliances. Plus, with their cooler surfaces, they offer practical advantages, like easier cleanup after cooking.

The Return of Built-In Bars

Built-in breakfast bars and pass-through islands are another trend experiencing a revival. These features, once associated with mid-century homes, are gaining renewed attention for their functional and aesthetic appeal. They offer a partial division between the kitchen and living areas, making them a focal point for both cooking and socializing. Leah Ring explains, “Kitchens are the heart of the home, and big islands provide useful space while creating a natural connection to other living areas.” Whether for casual dining or extra prep space, these bars are becoming essential in modern kitchen designs.

Light Metals Shine Again

Oiled bronze is out, and stainless steel is back in style. White metals, including chrome, are experiencing a resurgence as homeowners seek sleek, minimalist designs. Resnikoff points out that stainless steel cabinetry is emerging as an alternative to traditional wood or synthetic materials. First introduced in the 1930s, metal cabinets are making a comeback, offering both durability and a modern edge. Reflective materials, like mirror glass backsplashes, are also being used to create a bright, spacious feel in contemporary kitchens.

Vintage Tiles for a Modern Touch

Architect Della Hansmann, known for her podcast Mid Mod Remodel, specializes in blending mid-century design with modern living. When it comes to kitchens, tiles are a key feature where vintage inspiration shines. Hansmann often works with clients who want to preserve the charm of their original kitchens while updating them for today’s needs. Handmade tiles, like those from Clayhaus, are popular for their retro appeal, offering a wide range of colors and styles. Whether it’s an atomic-age look or a pop-art twist, tiles provide endless opportunities to infuse personality into a kitchen design.

In 2024, kitchen design is striking a balance between the cutting-edge and the classic, with homeowners embracing both the future and the past. Whether through vintage-inspired flooring, sustainable appliances, or the return of iconic features, the kitchen is evolving into a space where old meets new.

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