hour for a slightly lower rate, and they may now have to deal with the issue more often following a CFPB mortgage study and the advice it has spawned.
A recent Consumer Financial Protection Bureau (CFPB) study concluded that only half of mortgage borrowers consult just one lender or broker when shopping for a mortgage, and that study inspired a Bankrate.com article entitled Four mistakes that make your home loan more expensive.
“It is a good idea to shop around for mortgages in order to get better rates,” Paul Sian, a Cincinnati-based real estate lawyer and Realtor told Bankrate.com. “Sometimes large banks and lenders don’t offer the best rates that can be had. Additionally, some lenders add in fees. While the final fees do show up at the end, many borrowers don’t understand the fees and accept them as the cost of getting the loan, even though they could’ve avoided those fees by shopping around.”
It’s advice that will likely frustrate some mortgage originators, many of whom have access to a number of lenders and pride themselves on doing the shopping for their clients by matching them with the lender best suited to their mortgage needs.
However, those originators who work with only one lender will benefit from the advice, as it encourages mortgage borrowers to look beyond their existing bank relationship.
The three other mistakes noted in the article are focusing on irrelevant factors, such as proximity to the lender or a pre-existing relationship; failing to seek objective information; and working with a lender who doesn’t properly outline the process.
Mortgage loan officers are too familiar with potential clients who flee deals in the 11