Study: In 2018, 34% of first-time buyers went with the first lender they contacted; 41% of repeat buyers did the same. But shopping around could save them money.
WASHINGTON – According to a study by Fannie Mae, 34% of first-time homebuyers in 2018 did not shop around before choosing a lender – and 41% of repeat buyers did the same.
Nearly two-thirds of borrowers who only reviewed one quote before obtaining a mortgage said they chose not to compare competing offers because they were either comfortable with the lender who provided the initial quote or were satisfied with the quote itself. Another 10% said it was too much hassle to shop around.
Since buyers don’t realize how much money they might have saved, however, most reported that they were happy with their mortgage – 76% who obtained only one quote said they didn’t have regrets.
Fannie Mae chief economist Doug Duncan noted that most buyers in the study “still reported trying to negotiate mortgage terms with somewhat less success than those who did shop around.”
Fannie Mae says that more than a third of buyers who obtained multiple quotes successfully negotiated a lower interest rate, and many also secured lower costs associated with mortgage insurance, origination fees and appraisal fees.
Meanwhile, a May study from LendingTree found that mortgage borrowers who received five or more offers saw a spread of $2,045 between the highest and lowest fees proposed to them.
Source: MarketWatch (08/05/19) Passy, Jacob
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