Most homebuyers don't shop for mortgages

Here’s why not comparing mortgages can cost you money

By Nora Colomer  / Fox Corporation

When it comes to researching which purchases best fit their finances, buyers said they spent more time

browsing for cars and vacations than they did mortgages, a recent survey by Zillow Home Loans said. 

Seventy-two percent of prospective homebuyers reported that they have not shopped around for a mortgage and they don't intend to, the survey said. 

By contrast, survey respondents said they spent a month researching other items before buying them, including their next car purchase (28%), their next vacation (23%) and their next TV purchase (12%). 

Only 13% of respondents said that they spent a month researching mortgage lenders before they applied, the survey said

Nearly half (46%) of would-be buyers applying for a mortgage only submitted one application, which put them at risk of missing out on significant savings throughout their mortgage, the survey said. 

"While TVs offer warranties and replacement plans in case something breaks, sometimes you only get one chance to get the right home loan structure and strategy in place," Jim Black, executive director of lender strategy at Calque, said. "Markets move, home values go up and down and qualifications can change, which makes it crucial to work with a local expert who can offer you several different programs to make a concrete decision for the long term.

"Knowing before you owe is the most important part of choosing your home loan lender confidently," Black continued.

If you think you're ready to shop around for a mortgage loan, you can use the Credible marketplace to help you easily compare interest rates from multiple mortgage lenders and get prequalified in minutes.

Here’s how much borrowers can save by comparing rates. Even one extra quote on a mortgage could save borrowers "an average of $1,500 over the life of the loan," and "an average of about $3,000 for five quotes," according to Freddie Mac.

And savings can fluctuate more when the economy is in decline. 

"So in bad economic times, the gains provided by rate shopping are even greater," Freddie Mac said.

"For example, during one such period in the depths of the global financial crisis

[the week of December 11, 2008], borrowers with a $250,000 mortgage could have saved $5,020, on average, if they had obtained five rate offers."

Despite the potential savings, many Americans reported that they didn't mortgage shop, the Zillow survey said. 

Here are the top three reasons why, according to the survey:

• 30% were worried shopping would hurt their credit score

• 24% were happy with the lender they contacted first

• 19% didn't want to spend the time shopping for mortgages

If you're buying a home or looking to refinance your current mortgage, you can visit Credible and compare multiple mortgage lenders to find the right option for you.