It’s been a while since I wrote anything about the difference between men and women in regards to real estate. But then I came across a very interesting article. It turns out that there’s a reason that 32% of women were likely to get a subprime mortgage than men, according to a 2006 study. They don’t shop enough.
I know, I know. I am just as surprised as you are. In fact, when I’m dealing with clients purchasing a new house, it’s often that the women take longer to find something because they want to make sure they’re getting the best deal and are in love with their new home. So what’s going on here? It actually makes sense. Women tend to rely on the instincts of their emotions, trusting a recommendation on mortgage rates from friends, rather than shopping for the best deal. Men, on the other hand, shop around for the best rate, and, therefore, they generally pay lower rates.
This was all determined by a 2006 study in Journal of Real Estate Finance and Economics. According to the article, “It makes sense to Daily Finance columnist Laura Rowley. ‘It’s not surprising, because mortgage shopping can be incredibly complex, so we look to people we can trust to help make the decision,’ says Rowley. ‘But this is one area where you don’t want to get by with a little help from your friends.'”
Rowley suggests that everyone should get at least three written estimates, generally from two mortgage brokers and one direct lender, like your bank. You’ll want to explain that you’re planning to buy a house in your general price range that you’ve predetermined along with the percentage you’re willing to put down. And remember that interest rates can change multiple times a day. So if you find a low rate, you might consider talking to the lender about “locking in” that rate while you search for a house so it doesn’t go back up. It’s worth everyone’s time to figure out the best rate and the best type of loan in order to save the most money.
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