NEW YORK – May 7, 2019 – First-time homebuyers are more likely to shop around for a better mortgage loan rates and terms than repeat buyers, a new study from LendingTree found when they compared first-time buyers with repeat mortgage borrowers to see who the savvy shopper is.
First-time buyers may be new to the real estate world, but they're entering the loan process prepared, the study confirmed: 52 percent of first-time buyers consider more than one lender when choosing a mortgage compared to slightly more than 48 percent of repeat borrowers. Further, 29 percent of first-time buyers apply for a mortgage with more than one lender compared to just 20 percent of repeat buyers.
Researchers also note that first-time buyers may be more likely to shop around because they're concerned about qualifying for a loan and know less about the process that buyers focused on their second house.
Only 24 percent of homebuyers said they were very familiar with the different types of mortgages available, compared with 52 percent of repeat borrowers who were.
Not surprising, first-time buyers also were less familiar with all aspects of the mortgage process, given it's the first time they're going through it.
Mortgage shopping can be a smart move. Buyers could see a median lifetime savings of $40,959 in interest on a $300,000 loan by comparison shopping, according to LendingTree.
Source: "First-Time Homebuyers Are Surprisingly Savvy Mortgage Borrowers," LendingTree (April 24, 2019)
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