Last week we talked about a new national survey conducted by the Consumer Financial Protection Bureau that revealed 77% of borrowers likely overpaid their mortgage loan. This week we want to talk about more of that study’s findings – specifically, the type of borrowers that actually shop around before getting a mortgage loan.

The CFPB study showed that of the 23% of home buyers that took the time to really research their options, the majority were first-time homebuyers. These first-time homebuyers are conducting the majority of their research online, which is great because it allows them access to a world of information, but, it also makes them more likely to rely on internet lenders. At Indigo Mortgage, we advise against working with online lenders for many reasons, including the fact that they are notorious for taking advantage of first-time homebuyers. Some of the homebuyers that took the time to research their loan had been previously denied by another lender. At Indigo Mortgage, we always encourage buyers to get a second opinion. If a homebuyer doesn’t qualify with one lender, they may qualify for a loan with another lender.

Eighty percent of the borrowers who shopped around were looking for the best rates and terms available. When they took the time to research their decision, many were able to save themselves thousands of dollars in unnecessary points and fees. The best way to save money on your home loan is to shop around. And don’t forget to consult a reputable local mortgage broker like Indigo Mortgage in Albuquerque, to help you along the way and answer any questions you may have.