Why 3 In 4 Homebuyers Don't Shop for Mortgages

Buying a home is likely the biggest financial transaction in one’s life, yet 77% of homebuyers apply with only one lender. Here are seven reasons only 1 in 4 homebuyers shop for a mortgage.

1. Most homebuyers don't know that rates can vary between lenders (or in some cases within a company) by as much as .50% for the exact same borrower.
2. Sites like LendingTree, which are supposed to help you shop, sell your personal information to the highest bidder even if they are not the right fit for you. Multiple lenders harass you by calling and emailing you incessantly.
3. Lenders make it very hard to shop. They require you to provide your Social Security Number and documentation that is not necessary at the pre-qualification stage. Moreover, they do hard credit inquiries, which can negatively affect your credit score.
4. Real Estate Agents recommend you work with lenders they’re comfortable with, even if that lender may not have the best rates or be the right fit for you.
5. Lenders provide their rate and closing cost quotes in many different formats making it difficult to perform an apples-to-apples comparison.
6. People don't trust the lenders that appear on shopping sites because the offers come with tons of fine print that allows the lender to display rates they can’t actually deliver.
7. It’s nearly impossible to differentiate between lender quality and to know which lenders are the best fit for your unique profile.

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