Most of my friends and clients in Bethesda, Chevy Chase or other neighborhoods wouldn’t think of making a major purchase without a little comparison shopping. Neither would most Americans—unless they’re looking for a mortgage. But according to a recent article on the New York Times website, mortgage shopping is now a whole lot easier: it’s online.
A December 2010 Harris Poll of 1,300 homeowners revealed that 96 percent of Americans would comparison shop for most anything, but only 61 percent did this for mortgages. The other 39 percent got just one quote for their loans, even though most knew that rates varied among lenders.
As a result, some of the nation’s leading mortgage lenders have revamped their websites so that borrowers can review lender rates and terms, learn about market trends, and read comments from other shoppers.
Lending Tree, an online site that helps borrowers connect with lenders, now provides not just lender quotes but also industry articles, research tools, calculators, and consumer-generated ratings of lenders. They offer how-to tips for first-time buyers. Borrowers can also post mortgage-related questions which a loan specialist will answer.
At the Quicken Loans site, you can see positive and negative customer reviews on buying and refinancing. And in March 2011 you can download their iPhone application to track appraisals, closing dates, and other time-sensitive processes of home buying.
Bank of America offers separate information and tools for first-time versus experienced buyers, using simple language that anyone can follow.
All of this is meant to keep home buyers, especially first-time buyers, from getting overwhelmed by the choices, time pressures, and decisions that come with such a key purchase. During the holidays, Quicken took a novel approach to this on its website by posting directions for turning excess paperwork into Origami!
Whether you’re experienced or a novice, home buying and refinancing is worth the time and effort of comparison shopping. Only now there’s a lot less effort and potentially much better results.
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