You can buy almost anything online nowadays, so why not a mortgage as well? More and more home buyers are choosing to find a mortgage loan online instead of going around town and talking to lenders. Applying for a mortgage loan online seems to be significantly easier than doing it the old fashioned way, but you may be wondering what else it involves.
The biggest benefit of finding a mortgage loan online is convenience. You can get mortgage loan quotes and other information from multiple lenders in only minutes, without having to visit each of them individually, which would probably take up a lot more of your time. Applying for a mortgage loan online is even better than doing it by phone- no waiting on hold for a long time and being transferred several times until you find the person who can help you.
Finding Online Mortgage Companies
Many lenders are offering online mortgages, but they all have different rules which can be to your advantage or disadvantage. Some online mortgage lenders are banks and credit unions, which are the ones issuing and approving the mortgage loan. They can inform you of the interest rate that you qualify for, present you with your loan options, and answer all of your questions related to the mortgage. Applying with this type of lender can be very beneficial because most of your questions will be answered directly by the lender. However, in order to get the best deal, you will still have to shop around, speak with multiple lenders, and research all of the loan options that they are offering.
Another option when looking for an online mortgage is to speak with a mortgage broker, which will act as an intermediary between you and a lender. After you give them all of the necessary info, they will try to find the lender that offers the best possible interest rate and terms. Because a mortgage broker is an intermediary between you and the lender, he will handle all of the paperwork and do the research for you. However, mortgage brokers charge a large fee for their services, so if you have the time to shop around for a lender, you would probably be better off doing it yourself.
A third option when looking for an online lender is finding a mortgage referral website. After entering information about yourself and what you are looking for, these websites refer you to several lenders which you can compare in order to find the best mortgage loan deal. Mortgage referral services are easy to use, but you will have to go through the various offers and decide what better suits your needs and financial situation.
Tips for Applying Online for a Mortgage
While applying for a mortgage online is easier and has some great benefits, it also has some disadvantages. Here are a few things that you should keep in mind when applying for a mortgage loan over the Internet.
- Use search engines. What better way of finding something on the Internet than by using search engines like Google or Bing? A few clicks and you can find some of the largest online mortgage companies. Of course, you can also use other sources in order to find online mortgages. Ads on TV, on the radio and in newspapers can also be very helpful when looking for an online lender.
- Research the online mortgage companies that you are considering. Like shopping for a mortgage loan the old-fashioned way, you have to be careful when deciding which online mortgage lender you want to go with. Reading reviews about online mortgage companies and checking with the Better Business Bureau is something you should do once you find a lender with an attractive offer.
- Have your financial info ready. Once you find a trustworthy lender that can give you a good interest rate and mortgage loan terms, make sure that you gather all of the necessary documents before they even ask you for them. You will need info about your income, your savings and your debt.
Online mortgage loans are an attractive alternative to conventional mortgage loans as long as you take all the necessary precautions. It’s easier for someone to scam you over the Internet, where you just enter your information without speaking to an actual person. That doesn’t mean that there aren’t legitimate online mortgage lenders. You just have to do a little research and make sure that what they are offering is what you will actually get.