You’ve probably seen an advertisement for an online mortgage and are considering using one of the online services to get a mortgage. While it’s true that online mortgages are growing in popularity, there are some things the public at large does not understand about them. Here are some things that you need to know before applying for a loan with an online mortgage lender.
Online Mortgage Applications are Simple
There are several reasons why online mortgages have become popular, and one of the main reasons is the ease of which you can apply for a mortgage. The application process has been simplified, and in some cases, you can get almost instant approvals if you meet the financial criteria. You can simply upload photos or PDFs of your financial documents. This eliminates having to bring or mail physical copies of documents to the lender.
Lower Rates are Possible
Because online mortgage companies don’t have multiple locations, with numerous employees and bills for those locations, they typically offer lower rates. Of course, there are varying rates among online lenders, so be sure to use one of the many online mortgage comparison sites to ensure you have the best rate available.
Service Through Online Mortgage Lenders is Less Attentive Than Traditional Lenders
One of the significant drawbacks in using an online lender is that if you are dealing with a problem, you will never speak to the same person twice. This means having to tell each new person you talk with or email about the issue with which you need help. You will deal with the same person with traditional lenders, and if you speak to someone else, they are usually in the same building as the person you initially spoke with. Traditional lenders can also bend their schedule to meet yours, they can meet with you in person on weekends or evenings.
Traditional Lenders Have More Room to Approve Your Mortgage Application
There is a rigid set of criteria online mortgage lenders adhere to when making the decision to approve a loan or not. If you don’t meet one of those criteria, such as being self-employed or having a questionable credit score, then you are unlikely to get approved for a mortgage. Traditional mortgage lenders have the discretion to look at intangibles and approve an application that an A.I. would immediately reject. They can also tell you what to do to improve your chances of approval if you are not approved on the first attempt.
Always Read the Terms and Conditions of an Online Mortgage
The devil is in the details when it comes to online mortgage lenders. Make sure that you read the fine print. It’s important to see what you’re getting into, and it still may not be clear. A traditional lender can explain the details of your mortgage . They can also answer any questions you may have; this is a definite advantage traditional mortgage lender have over online lenders.
Are you are a seeking to apply for a mortgage in the greater Tampa Bay Area? If you need sound advice on what the process entails, call me at 813-915-6649 or email me at [email protected]. I have extensive experience and an in depth understanding of the mortgage application and approval process. Don’t make the mistake of getting the wrong lender online, contact me today!
