Survey: 77% of borrowers do not shop for the best deal on a mortgage

Mortgage comparison website FREEandCLEAR.com has published the findings of its first ever Mortgage Survey that provides insights into how borrowers select their mortgage lenders.

The survey results examine key mortgage topics including how many lenders borrowers shopped when they got a mortgage, what types of lenders borrowers contacted and how they found the lender they chose. Among the most illuminating findings was that some 77 percent of borrowers used an existing bank relationship, real estate agent or personal referral to find their mortgage lender while only 9% used an Internet search, showing that personal relationships trump the Internet when it comes to selecting a mortgage lender.

The results also showed that 36 percent of borrowers compared only one lender and 64 percent compared two or less lenders when they got a mortgage, suggesting almost two thirds of borrowers may be leaving money on the table by not shopping lenders more extensively. You can view the latest survey results at FREEandCLEAR Mortgage Survey.

“Our mortgage survey continues to enable us to gather invaluable insights into borrower behavior,” said FREEandCLEAR.com Co-Founder Michael Jensen. “These results enable us to really understand the factors that drive the  decision-making process.”

The survey reinforced some perceived notions about the mortgage industry while also producing some surprising findings. “We knew the mortgage market lagged other industries in terms of Internet adoption but we were shocked to see just how ‘old school’ the lender selection process is for most borrowers. It’s a significant opportunity for lenders and other industry participants,” said Jensen.

Additional results of the FREEandCLEAR Mortgage Survey will be revealed in the coming months. Future releases of survey results explore important topics such as Borrower Education and Improving the Mortgage Process.

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

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