Fail to Shop Around for Mortgage, It’s Your Loss
More than a third of home buyers say they did not shop around before selecting their mortgage lender, according to new findings from Fannie Mae’s National Housing Survey. That may mean they’re missing out in thousands of dollars in savings.
Comparison shopping for a mortgage can also be time-consuming and complicated. “Simply evaluating the ‘price’ of a mortgage involves looking at several interrelated components—including rates, fees, and points—and making an assumption about how long a borrower will stay in that mortgage,” Duncan notes. “While it’s easy to find ‘teaser’ rates advertised online, a true mortgage quote is based on a handful of variables that are unique to each buyer and evaluated differently by each lender.”
Credit history, down payment, and the ratio of monthly debt payments to income are usually given the most weight in determining a mortgage offer.
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