Do you still have alternative choice after having a mortgage in principle?

Question

It is said that you should get a mortgage in principle before looking for a property. But does it mean that you can get back only to the lender who gave you the mortgage in principle? If you have found your desired house, can you find another lender?

Answer 1

I think you mean a pre-qualification, which is an indication to the seller, that someone will actually lend you $$ and you are not wasting the sellers time.
As far as the actual mortgage, you can go with whomever you want at any time but realize that it takes any lender about 30 days to do all the paperwork SO . . . make a decision by about 30 days prior to anticipated close date.

Answer 2

Mortgage in principal only means that they have checked YOU out and are prepared to loan a set amount - technically you could have several lenders giving you 'in principle'. The 'in principle' is a guide to how much a lender will loan you to spend on a property. It does not actually mean that they WILL lend you this amount - if the property does not survey out to the value that is being asked, or the amount you wish to offer.

Answer 3

Yes you can find another lender. Just be careful if you are going to an independent mortgage advisors who find you a mortgage that you will not incur any charges directly from them for each mortgage application. With most advisors this won't be the case.
A bit of extra advice; If you are only going through your bank, check you visit an independent mortgage advisor as well for a free consultation, to see if they can beat the bank's deal. You could really save on your monthly outgoings.

Answer 4

Sure, until you have signed an agreement, you are not committed to any one mortgage lender - shop around - but obviously don't mention this to the lender who made the original offer !