Should You Mortgage Shop? Homeowners & Fannie Mae
If you’re a soon to be homeowner, then it should be known: shopping around for a mortgage is highly recommended.
(We’ve even wrote about it in an article a couple months ago, here).
Unfortunately, it looks like many homeowners from 2018 didn’t compare mortgage rates from different lenders.
According to Doug Duncan, Chief Economist of Fannie Mae, more than a third of 2018 homebuyers did not shop before selecting a mortgage lender.
If it’s so important to compare, why aren’t homeowners doing just that?
It might be because homeowners already have a pre-existing relationship with a lender, they might be exhausted from the process of home buying, or they simply may not know that they have other options.
Homeowners who did shop around had more power at the negotiating table with a mortgage lender – 36% negotiated a lower interest rate, 11% received lower origination fees, and 13% got lower points or a reduction in another type of fee.
Those with college degrees were also more likely to shop around for quotes, about 66% of shoppers.
Duncan explains, “by not shopping around to give themselves leverage when negotiating their mortgage, some homebuyers are leaving money on the table.”
Don’t forget to check out AmeriTitle’s blog to stay current with real estate market stats and guides on home purchasing!