How do borrowers select mortgage lenders?
Trust and tradition – these factors still matter in looking for a mortgage lender, as more borrowers prefer using an existing bank relationship or a real estate agent referral to looking online, according to a new survey by FREEandCLEAR.
In the survey, 30% of respondents said they used an existing bank relationship, while 29% said they used a real estate agent referral to find their mortgage lender. Eighteen percent said they found one through the help of a friend or a colleague. Only 9% said they searched through the Internet to find their mortgage lender.
Half of the respondents sought for the advice of big banks in getting their mortgage, while 38% got advice from local banks, 38% from a mortgage broker, 28% from a credit union and 23% from a mortgage bank.
Borrowers also showed confidence in their choices; 64% of them compared only one or two lenders before settling for their mortgage. FREEandCLEAR recommended comparing at least four lenders to find the best mortgage -- something only 14% of respondents said they did. Just 36% compared three or more lenders.
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