Photo: More Good Foundation
Women may be the biggest spenders, but men have much better game at shopping for mortgage loans.A new study shows that despite having similar credit scores, women are more likely to sign mortgages they can’t afford (subprime) without taking high rates, AOL reports.
Before you get your knickers in a twist, ladies, it’s important to note that the researchers did not point to gender discrimination as the reason behind the trend.
Women are simply quicker to go for a lender they like, while men tend to take their time and shop around for the lowest rate.
“The disparity cannot be fully explained by traditional variables such as mortgage features, borrower characteristics, and market conditions,” the study says. “Women pay higher rates because they are more likely to choose lenders by recommendation, while men tend to search for the lowest rate.”
To fix the disparity, the research team suggested women’s financial literacy could use some help. To give you a head start, check out these FTC-approved tips on navigating the mortgage shopping experience:
Cast a wide net. Rather than asking pals for recommendations for lenders, do your homework and get information from several lenders or brokers. Be sure you know how much you can afford on a down payment, the FTC says.
Ask about rates. Get a list of the firm’s current mortgage rates and don’t be shy about asking if it’s the lowest they can offer.
Interest counts. Don’t forget to factor in the APR. Ask ahead how much it’ll be and about any other associated fees.
Also, see our coverage of what you should do if you’ve been rejected for a loan here.
Looking to buy rather than rent? Check out the pros and cons here >