RICHMOND, Va. (WWBT) - Half of mortgage borrowers only talk to one lender and that’s a serious mistake that can cost you hundreds of dollars a year.
When you shop multiple lenders you will find a lender that offers a better mix of interest rate and fees. But most people don’t pick up the phone and call around. They feel like this is a pain.
But it can be worth it.
Holden Lewis is NerdWallet’s authority on mortgages and real estate. He recommends applying with at least five lenders. He says a Freddie Mac study found that if you do this you’re going to get an interest rate of .1666 percent less than someone who didn’t shop around.
“That doesn’t sound like a whole lot but that really can be dozens of dollars a month and hundreds of dollars a year,” said Lewis.
Also, when you apply for multiple lenders inside a 45-day window. It counts as only one inquiry as far as the impact on your credit score.
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