AgentIndustry News

Top gripes when shopping for a mortgage

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"Is it harder to shop effectively for a mortgage than for a car?" Shopping for a car is child's play compared to shopping for a mortgage. Price features of mortgages must be verified: Price always depends on the features of the product or service being priced. These are easy to define on a car, consisting of the brand, model number, extras and accessories. A car buyer can specify these and obtain consistent price quotes from multiple dealers. In contrast, the list of mortgage features that affect the price is long, and all features must be verified by the lender, which takes time. Lenders will not invest the time until a borrower applies for a loan, which means that the consumer must commit to the lender without being sure that the mortgage specs that the lender priced are correct. For example, let's say a borrower wants to refinance a $200,000 loan on a property she claims is worth $250,000. But if the appraisal comes back at $230,000, it is a different mortgag...