When buying a house, looking for the most favorable mortgage rate is human nature. After all, why would you pay for more money over the lifetime of your loan when you could qualify for lower interest?
Contrary to popular belief, though, most borrowers don’t pick lenders like Altius Mortgage Group based on the loan interest. According to STRATMOR, only 2% of applicants choose lending companies because they offer the best rate. Here are the three most influential factors:
Word of Mouth
The strongest driving force behind mortgage deals is actually referrals. Most borrowers listen to what real estate agents or builders endorse. Borrowers take personal recommendations from friends and family members seriously. It’s far less risky to do business with a lending institution perceived reliable by the people they trust. It’s normal to think twice before taking a leap of faith to take out a loan from a relatively unproven lender.
Many borrowers likewise continuity. Rather than building a new relationship with another lending institution, it’s easier to ink a mortgage deal with the one they already know.
Did you know that positive online reviews are just as strong as low interest rates when attracting 2018 American borrowers? In the digital age, almost everyone appreciates the value of consumer-generated testimonials before buying products—and mortgages are no exception. But then again, be careful where you get your information. Make sure that your source serves as an impartial platform to get unbiased comments about local mortgage lenders.
How do you prefer to size up lending institutions? Would you rather listen to your intuition than get advice from other people? Or, are you willing to move out of your comfort zone, and analyze the deals offered by all lenders? As long as you exercise due diligence, you should be able to find a trustworthy lending institution that also provides a favorable interest rate.