Albuquerque Mortgage Misconceptions Match National Survey

Recently Zillow, an online real estate database, did a national survey and found there are myths that borrowers believe and things they just don’t know about mortgages. At Indigo Mortgage, we’ve found that most of these perceptions hold true in the local Albuquerque and Rio Rancho market as well.

The first item is that borrowers believe that when they get pre-approved for a home and that lender issues a pre-approval letter to the seller, the borrower must close their loan with that lender. This is untrue-- borrowers do not have to use the pre-approval lender and actually, it’s wise to shop that mortgage around.

The second misconception is that borrowers believe that the bank they do business will offer them the best rate. This again can prove costly to a borrower. It’s a good idea for a borrower to shop their mortgage around to find the best rate and terms, and not just turn to a single lender even if it’s a bank they have been with for years.

Here are some other statistics:
- 34% of prospective home buyers don’t know what the term APR means
- 50% of prospective home buyers don’t know mortgage rates change daily
- Millions of homeowners still don’t understand that the HARP loan program can help them refinance even if they owe more than the home is worth.

Of course, it’s really not the borrowers’ fault if they don’t understand. We always say, mortgages are very complicated and the landscape is always changing, so what’s true today may change tomorrow. That’s why it’s so important to use a local lender. someone you can meet face to face, and talk to the same person from one phone call to the next. With so many complexities in the mortgage business, out-of-state or national lenders do not always give the correct information to local borrowers. Local lenders are the best source of information to local borrowers.

At Indigo Mortgage, we’re happy to answer any question about mortgages. Contact us at 505-836-5700 or fill out our Quick Analysis on our website.