If you’re in the market to buy a home, you probably know it’s a smart move to get prequalified for a home mortgage. But a new Inman News article, written by Re/Max Legends associate broker Hank Bailey, makes a compelling case for getting prequalified by multiple lenders. Even more important than shopping around for the most competitive rates and fees, obtaining more than one prequalification gives homebuyers a more accurate picture of what they can actually afford. In particular, Bailey cautions against relying solely on a prequalification letter generated online–even one that comes from a reputable bank. According to Bailey, the difference between an online prequalification and one granted by a live person can be significant. “We are talking about a 40 percent reduction in the maximum home loan,” he says.

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