When it comes to finding a mortgage, not shopping around could mean you’re leaving a lot of extra money on the table. A shocking number of first-time buyers go with the first home loan offer that comes along. But that could be a big mistake.
Shop and SavenWhen you consider the potential savings gained by shopping for the best mortgage rate, it’s shocking how many don’t put in the effort to weigh their options. The Consumer Finance Protection Bureau reports that nearly half of all mortgage borrowers don’t shop around when looking for a home loan.
Buying a home is likely to be the biggest purchase you ever make, and you’re going to be working at paying off your home loan for 15, 20, or 30 years. Depending on the details of your loan, the interest rate, fees, and many other factors could vary widely. Consider options from various lenders.
Shopping TipsnMost experts agree that it’s best to look at at least three different lenders to make sure you’re getting the best deal on your mortgage. That should include your own bank and at least one national lender.
Mortgage rates can vary quite a bit from one lender to another and often change from one day to the next, so all that shopping around can pay off. Just a fraction of a percentage point can add up to thousands of dollars over the lifetime of your loan. Keep a few things in mind as you look for the best home loan:
Forbes recently reported that buyers who compare one extra quote could save $1,500 on their home loan and that buyers who compare two extra quotes could save $3,000. No matter how you look at it, the numbers are very clear about one thing: it pays to shop around.