Online mortgage advice and tips
The advantage of getting an online mortgage is that you can instantly compare the interest rates, terms and conditions offered by a wide range of lenders. Because the online mortgage loan industry is inherently more competitive, lenders go the extra mile to get your business — and this can be very advantageous to you as a consumer.
How to Get a Mortgage Quote Online
To obtain a mortgage quote online, the first thing you need to do is make sure you're dealing with a reputable lender. You're going to be giving out sensitive personal and financial information, and you certainly don't want that falling into the wrong hands. To ensure an online mortgage broker is reputable, deal with a company that has a physical address in addition to a Web presence; this makes it more likely that they're on the up-and-up. Also look for strong customer support services, and beware of any online mortgage broker that claims to be the sole financier of your mortgage; this kind of claim is often of the too-good-to-be-true variety.
Once you're satisfied that the online mortgage loan company is trustworthy, proceed to fill out a mortgage application on the company website. The application should be secure, confidential and free, with no obligation whatsoever.
When you get a mortgage quote online, you can usually expect an answer within 24 to 48 hours. You can shop for a full range of financial products with online lenders, including a standard fixed or variable rate mortgage, as well as a bad credit mortgage, home equity mortgage or other specialized home loan. Many online brokers also offer mortgage refinancing services if you have an existing loan.
Valuable Online Mortgage Advice for First-Time Shoppers
When you shop for a home mortgage online, there are a few pitfalls you'll want to be aware of. Unfortunately, disreputable online mortgage brokers are mixed in with legitimate ones, and it's not always easy to tell the difference between them.
First, you should never, ever leave any fields blank on any documents you're signing and returning to the lender. Also, pay close attention to the fees and points each respective lender adds on to the mortgage terms; online mortgage brokers get their commissions through fees and points, so less reputable companies will try to sneak exorbitant extra charges past you because that money goes straight into their pockets.
Finally, it's a good idea to have an attorney review your online mortgage documents before you sign them and send them in. Unless you've got advanced knowledge of real estate law, you'll probably have a hard time making sense of all the terms and conditions in the fine print, and you don't want to get locked into a bad deal.
That said, an online mortgage loan can save you a lot of money. The competitive nature of the online mortgage industry and the lower overhead costs these lenders have are both contributing factors to a cheaper bottom line for consumers.