Homebuyers Are Not Doing Their Due Diligence in Finding Lenders – theMReport.com
Publication of the results of a new survey, Zillow Home Loans found that potential buyers spend about as much time researching a new television or buying a vehicle as researching mortgage lenders.
Overall, the survey found that 72% of potential homebuyers only plan to get one quote for a mortgage loan and that these respondents could be responsible for that decision at the cost of hundreds of dollars in additional costs per month. month.
Reasons for this include fear that multiple credit applications will lower their credit score (30%), they were happy with the first lender/offer they received (24%), the time and effort it took to shopping around (19%), the misconception that all lenders offer the same rate (15%) and the unwillingness to share their financial information with lenders (14%).
This is in comparison with 28% of those same respondents indicating that they spent at least a month researching a new vehicle and 23% spent a month researching an upcoming vacation, but only 13% said they spent as much time time researching mortgage lenders before submitting an application.
Research from Zillow reveals that potential home buyers who don’t shop around could end up spending tens of thousands of dollars more over the life of their mortgage. This is likely due to a lack of understanding of the mortgage application process, causing people to ignore research.
“Homebuyers should take the time to make an informed decision about their mortgage. It’s often the most important financial decision a person makes. Taking the time to understand their credit report, fix any issues and consulting with a qualified mortgage professional can make a significant difference in a homebuyer’s experience,” said Libby Cooper, Vice President of Zillow Home Loans. “Buyers often don’t understand that a loan officer can be a partner in the home buying process. They help discuss options and find the right solution for a client’s personal financial situation. Zillow home loans can help buyers get informed and head into their home purchase feeling more confident about this important financial decision.”