Shopping Mortgage Rates
By Michael Peron, Michael Peron, Dave Florida Real Estate
(South Florida Home Solutions)
Nobel Prize recipient, Richard Thaler, in his research into seemingly irrational economic behaviors, "found that consumers generally search too little, get confused while evaluating complex alternatives, and are slow to switch from past choices, even if it costs them." "Why are consumers leaving money on the table?"Based on this behavior, a borrower securing a mortgage might depend on their existing banking relationship or a single referral from a friend or agent rather than shopping multiple lenders.When shopping for a lower mortgage rate, consider that not all lenders share the same business practices. Some may lure unsuspecting borrowers to a rate, knowing full well that they cannot deliver on it. After making a loan application and supplying information necessary for approval, the...
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