When potential buyers shop around for a mortgage, they’re typically shopping for a lower interest rate, which can save them thousands over the course of their loan. But according to one study, comparison shopping can not only save you thousands in interest but can also save you thousands in additional fees.
According to a recent study from LendingTree, shopping different lenders can save potential homeowners a significant amount of money on additional mortgage costs (like mortgage application fees, appraisal fees, and underwriting fees), and the more mortgage options you consider, the more you’re likely to save. The study, which analyzed 300,000 loan offers, found that potential buyers who received five offers had a median savings of over $2000.
If you’re in the market for a new home, make sure you explore mortgage options from different lenders. Taking the time to consider different options could not only save you in interest over the long term—it could also provide immediate savings in the form of lower fees.