Are your buyers wasting thousands of dollars?
01/20/2015 | Author: Editorial Staff
In 2013, 47% of homeowners only considered one lender or broker for their mortgage, according to a recent report from the Consumer Financial Protection Bureau. Because of this, buyers could be missing out on getting a better interest rate on their loan, which leads to long-term cost savings. The CFPB’s research shows that a borrower getting a 30-year fixed-rate conventional loan could be quoted interest rates that vary by more than half a percent.
How come buyers aren’t researching for a competitive interest rate? It may be because of who they rely on for information about mortgages. The CFPB’s report says consumers rely mostly on lenders and brokers as a source of information about mortgages, therefore helping determine what type of mortgage a buyer chooses. The next source consumers rely on is their real estate agent. So how can you help?
Tell buyers to check mortgage rates online, so they are aware of the current marketplace. The CFPB has an online tool that shows consumers current statewide rates and how they affect costs.
Help buyers understand their loan options. They may not realize how many choices are available.
Make sure buyers know that they can get quotes from a variety of sources, including their bank and online. Once they have those quotes, they can use them to negotiate with lenders for the best deal.
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