LendingTree: Majority of Buyers Don’t Shop for a Mortgage, Though 45% of Those Who Do Receive a Better Offer

(Illustration courtesy of LendingTree)

Most homebuyers are not shopping around for their mortgage despite the potential savings, according to LendingTree, Charlotte, N.C.

More than half–54%–of those who took out a mortgage for their most recent home purchase only got one loan offer. Just 22% got two offers and 17% got three or more.

Homebuyers are likely leaving money on the table when not shopping around, the LendingTree report said. Among those who compared more than one mortgage offer, 45% say the lowest offer didn’t come from their first lender. Going further, 46% of those who got a mortgage say they went with a lender they didn’t have a prior relationship with.

By generation, Baby Boomers are the least likely to comparison shop, with just 28% doing so. That compares with 62% of Millennials.

Refinancers are more savvy with comparison shopping. Among the 45% of homebuyers who’ve refinanced the mortgage on their current home, 56% shopped around. Comparison shopping paid off for these refinancers, as 81% found a lower rate than their current lender offered.

Shopper confidence–warranted or not–is the top reason for not seeking more mortgage offers. Among those who sought just one mortgage offer, the top reason for doing so was confidence that they got the best rate (28%), followed by a desire to use the lender with whom their real estate agent had a relationship (20%). Additionally, 14% say they rushed to get financing due to the competitive housing market.

Mortgage rates influence buyer timelines, LendingTree noted. More than a third (35%) of buyers say they purchased a home earlier than planned to take advantage of low rates. That’s especially true for men, at 43%, versus 26% of women.