Fifty-six percent of home buyers went with the first mortgage rate offer they received, according to a new survey from LendingTree of more than 1,000 homeowners. But nearly half of those who gathered multiple quotes reported that they saved money by doing so—46% of borrowers who shopped around said the first offer they received was not the lowest rate.
Overall, only about a quarter of survey respondents said they received offers from two lenders, while 14% got offers from three, the survey shows.
“Though many people might not realize it, shopping around for a mortgage before you buy can help you get a lower rate and save tens of thousands of dollars over the lifetime of your loan,” says Jacob Channel, LendingTree’s senior economic analyst.
Women, baby boomers, and low-income borrowers were the least likely to shop around for mortgage rates, the survey found.
Real estate professionals may be key to helping borrowers find a lender. The survey reports that agents are the top way buyers connect to a lender. Fifty-one percent of homeowners first met with a real estate agent to begin the homebuying process before meeting with a bank.
Source: “56% of Mortgage Borrowers Didn’t Compare Rates, But Nearly Half of Those Who Did Saved Money,” LendingTree (May 17, 2022)
