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A dual apper is a casual moniker used to describe borrowers who apply for home loans with two or more mortgage brokers.
Because traditional lenders like banks only sell their own loans, they pretty much expect applicants to research the market and also try for loans with competitors because other lenders will be offering different types of loan packages.
However, mortgage brokers often sell the same product especially when they are offering loans from similar lenders.
This is why people who apply for loans with different mortgage brokers are frowned upon by brokers as the borrowers are essentially applying for the same loans from different companies.
From the borrower’s perspective, it is a classic strategy of pitting one against another to gain better terms and rates.
However from the broker’s perspective, it means that they might have to undercut themselves for a chance to close. Even so, the borrower might still settle for a competing broker as they are essentially selling the same products.
This is why a nickname of dual apper is penned for such borrowers. They are usually used by brokers instead of lenders for the reasons stated above.
While a home buyers might feel that this is the best course of action negotiation and securing best deals, it can lead to adverse effects like a lack of motivation on the part of the broker.
Brokers might eventually give up and offer a lesser level of customer service as they feel that even if they go above and beyond, they might lose the case to a competitor no matter what they do.
This is understandable as they might feel that they would have to sell a loan at underage in order to close.
A price that they are unwilling to pay.
As a borrower’s goal is to get the lowest interest rate at the least closing costs, a better approach might be to inquire about all upfront fees and points before submitting applications with brokers.