A new survey released by Zillow.com last week has found that homeowners do not spend as much time researching home loans as they do for other loan types before making a decision on which plan to purchase.
According to the survey, borrowers who eventually obtained a new mortgage did so after only completing 5 hours of research on the different loan types before making a decision. In addition, 31 percent of respondents said they needed two hours or less to do their research.
“People spend countless hours shopping for the perfect home, yet few realize that small differences in the interest rate or discount points can add tens of thousands of dollars to the overall cost of the home,” said Zillow Chief Economist Dr. Stan Humphries. “In an area like mortgages, where the lender has so much more information than the typical borrower, getting multiple offers from lenders and being able to compare them relative to one another is critical to leveling the playing field.”
In comparison, consumers looking for information on car loans – which only cost a fraction of a mortgage – spent an average of 10 hours before making a decision.