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A recently released study done by the Consumer Financial Protection Bureau (CFPB) found nearly half of Americans looking to purchase a home do not do their due diligence by shopping around for mortgage lenders. Rather, the survey found potential borrowers seriously consider only one lender, and that lender is often someone they’re already working with who has a stake in their decision.
In a move to encourage a better understanding of the mortgage landscape in their areas, the CFPB announced the launch of a new rate quote tool that allows borrowers to compare local rates without displaying specific lenders.
Don Frommeyer, CEO of The Association of Mortgage Professionals, believes the rate quote toll will empower homebuyers in a way not seen in decades.
“We are pleased that the CFPB has released these figures,” said Frommeyer. “They tell the story that not enough people are shopping around for one of the most important financial relationships they’ll ever have. We have suspected this for years. A mortgage broker’s main responsibility is to provide a number of alternative options in order for the homebuyer to get the best possible mortgage and to secure their dream home.”
Frommeyer urges homebuyers to know their options and avoid trusting the first credible opinion they receive, which could cost them thousands of dollars in the long run.