Kim Bass: Fail To Shop Around For Mortgage, It's Your Loss

Tuesday, August 27, 2019 - by Kim Bass, president, Greater Chattanooga Realtors

A piece of advice I often give to homebuyers is to shop around - not just for their property, but for their financing. It might seem that most buyers would do this, but new findings from Fannie Mae in their National Housing Survey showed that more than a third of home buyers did not shop around before selecting their mortgage lender. That means that many people potentially are missing out on thousands of dollars in savings.

In the survey, respondents say they received only one quote because they were more comfortable with the particular lender they chose. They also said they had less concern with competitive terms when selecting a lender and put more weight on other priorities like responsiveness and having an account with a lending institution.

As Realtors, we are often sources of advice in many areas, including lender selection. Because of this, Realtors have a key role in encouraging homeowners to seek multiple quotes when mortgage shopping says Doug Duncan, Fannie Mae’s chief economist.

Comparison shopping for a mortgage can be time-consuming and complicated. “Simply evaluating the ‘price’ of a mortgage involves looking at several interrelated components—including rates, fees, and points—and making an assumption about how long a borrower will stay in that mortgage,” Duncan notes. “While it’s easy to find ‘teaser’ rates advertised online, a true mortgage quote is based on a handful of variables that are unique to each buyer and evaluated differently by each lender.”

In fact, another study from LendingTree shows that women are specifically missing out on deals on their mortgage. LendingTree’s study shows that first-time buyers and repeat borrowers who are women reported being less familiar with all aspects of the mortgage process. “It seems women are paying a higher price to access homeownership than they should,” researchers note in the study. Single women accounted for about 20 percent of the seven million home sales in 2018, and researchers say they may have overpaid by more than $1 billion because of failure to shop around for a mortgage.

Credit history, down payment, and the ratio of monthly debt payments to income are usually given the most weight in determining a mortgage offer. But other factors besides rates can affect a loan. Fees and points can also impact the “cost” of a loan.

There’s a lot to consider when it comes to obtaining a loan. A Realtor can guide you through the process to help you feel more comfortable and less overwhelmed. That’s Who We R.


Real Estate Transfers For Feb. 13-19

CBL Properties Appoints Justice Wade To Senior VP Of Development And Mixed-Use Leasing

Real Estate Transfers For Feb. 6-12


NOTICE: The Hamilton County Register’s Office did not publish this data. All information in the Register’s Office is public information as set out in T.C.A. 10-7-503. For questions regarding ... (click for more)

CBL Properties announced Monday the promotion of Justice Wade to senior vice president of development and mixed-use leasing. Commenting on the promotion, CBL Properties’ President Michael ... (click for more)

NOTICE: The Hamilton County Register’s Office did not publish this data. All information in the Register’s Office is public information as set out in T.C.A. 10-7-503. For questions regarding ... (click for more)




Real Estate

Real Estate Transfers For Feb. 13-19

NOTICE: The Hamilton County Register’s Office did not publish this data. All information in the Register’s Office is public information as set out in T.C.A. 10-7-503. For questions regarding this report, please call Chattanoogan.com at 423 266-2325. GI numbers, listed when street addresses are not available, refer to the location of transactions (book number and page number) in ... (click for more)

CBL Properties Appoints Justice Wade To Senior VP Of Development And Mixed-Use Leasing

CBL Properties announced Monday the promotion of Justice Wade to senior vice president of development and mixed-use leasing. Commenting on the promotion, CBL Properties’ President Michael Lebovitz said, “Justice has positioned himself as a well-respected leader within the industry and the CBL organization. “Since 2010, Justice has led our new development leasing and ... (click for more)

Breaking News

Family Of 5 Displaced After Fire Damages Home Late Friday Afternoon

The Red Cross is assisting a family of five after their home was damaged by fire late Friday afternoon. It happened at 5:09 p.m. in the 4000 block of Renezet Drive, not far off of Highway 58. When firefighters arrived on scene, they saw heavy smoke and fire. Flames were coming from a bedroom and spread into the attic space. A quick and aggressive interior attack was ... (click for more)

13 Congressional Medal Of Honor Recipients, Including Charles Coolidge, To Attend Center Opening

Thirteen Congressional Medal of Honor recipients, including Chattanooga's Charles H. Coolidge, are set to attend the grand opening ceremony for the new Charles H. Coolidge National Medal of Honor Heritage Center on Saturday at 10 a.m. at 2 West Aquarium Way. Medal of Honor recipients due to attend also Include Bennie Adkins, Barney Barnum, Patrick Brady, Gary Beikrich, Kyle Carpenter, ... (click for more)

Opinion

Infinite Gratitude To The Entire Memorial Hospital Team

To Memorial Hospital doctors, nurses, staff and executive leadership, I want to offer and to express my sincere and profound gratitude for the extraordinary care and caring that you recently provided to one of my dearest and most beloved relatives. Last week, my loved one, who was suffering from flu symptoms, suddenly became seriously and critically ill with pneumonia in both ... (click for more)

Roy Exum: This Will Make You Cry

My word of the day, compliments of my friends at Dictionary.com, is phronesis (pronounced “froh-NEE-sis). It is a wonderful word that we should include in our daily prayers, asking God to mercifully instill phronesis within each of us in our every hour. It means “the wisdom in determining the ends and the means of attaining them, practical understanding, sound judgement.” Centuries ... (click for more)