If home is purchased with initial lender and then new lender take over do i have to submit a 1098 from the first one?

A lender takeover is not a refinance.

You want to report all your deductible interest and taxes for the year.  If all your interest and property taxes are recorded on one 1098, that's all you need to enter.  If you paid interest to the first lender that is not on the 1098, you can add that (by entering the name of the lender and checking the box for "this lender did not send a 1098").

You would have to do your own research into your mortgage accounts to figure out your interest payments. 

If you don't enter all 1098-s received, then you will not be able to claim the interest reported on those 1098's you do not enter. It's that simple.