The previous blog post (see here) noted that women are 32% more likely to pay a higher interest rate on their loan, according to the Journal of Real Estate Finance and Economics. Ostensibly, women are far more likely to take the advice of a friend or colleague rather than consult with several different lenders and compare (see article).Now for some advice to women to close that gap and make us all more informed consumers.
Be sure to look not just at different lenders, but at different types of lenders; check out large national banks, mortgage brokers, online lenders and smaller lenders to ensure you’re getting the best range of options.
Also, make sure you’re comparing the same loan product. A 30-year fixed at a national bank will have a very different rate than an ARM at a smaller lender. And on top of the type of loan, remember that rates change daily, hourly in fact; try to cross-reference these loans within the same day, or preferably within the same part of the day, if possible.
If you’re having trouble remembering who you talked to and what you talked to them about, try writing several scripts and working on a spreadsheet so you can keep the data in the right place. This will also make sure that you’re asking them the same questions for certain pieces of data – rates, terms, points, etc. As you work on your script, become familiar with loan terms so you know what you’re dealing with (you can do that here). A little up front research can go a long way to prepping yourself for these conversations. It will also keep you from worrying about getting the run-around because you’ll know what you want before you call.
So when it comes to advice from our friends, ladies, keep an eye on what we have to do on our own to make sure we’re making the best possible decision for ourselves as we move into our new homes.