Applying for too many mortgages risky?

[Monkeyleg]

I've heard for years that if someone is turned down for a mortgage (or any loan), that it's a bad idea to go and apply elsewhere. The supposed reason is that lenders will see multiple loan applications as either a sign of desperation, or a sign of someone trying to rack up a lot of credit.

Folklore or truth?

[Jenny0109]

Maybe its risky because they were trying to have lot of credits. Lenders might think if they can really pay all of his debts.

[PaulChapman]

"too many" is fairly broad.

If you're out shopping with 13 different lenders then bad things are bound to happen. Mainly too many inquiries on your credit which will cause your score to drop.