Unlike with the traditional mortgage process, consumers are now becoming aware to online mortgage. But before you begin to apply, learn whether this new system is right for you.
ADVANTAGES
- Less waste of time
Choosing online can save a lot of time during application and closing on the loan. Unlike the traditional route, where you have to write in a stack of documents, work through a bunch of emails, and make copies of everything, now, you can send info through an online mortgage lenders pre-set application online. You can just scan and upload the required papers and documents to the lender’s website.
- Receive lower rates and fees
Since online lenders save by not having loan officers, storefront shops, and large customer service personnel, much of the savings goes to you as the borrower. Savings such as origination points and document processing fees are all reduced or don’t exist with online mortgage lenders.
- Faster Approval
Can literally take seconds after submitting the application. If your in a hurry, then the online mortgage is the best option because you can even get approval during non bank hours.
DISADVANTAGES:
- Limited Customer Service
Online lenders offer mobile phone to assist their consumers, but standard communication is email and for some borrowers, the non personal attention can be stressful when they are going through a major part of their home buying journey.
- Rate Switching
Even if you were offered a certain rate in your mortgage application, change of rate can happen once the lender begins the process of assessing all your information and documents.
- Mortgage Scam
The potential for scams taking advantage of borrowers is higher because it is online and less regulated. Make sure to inspect the mortgager’s website thoroughly before applying to avoid financial trouble.
So which to go to?
Online mortgage is becoming popular for the convenience and savings. Meeting your lender personally can still give you the benefits of assurance especially with local banks.
But one thing is for sure. Due to a widening competition because of online mortgages, lenders are now offering a variety of offers with lower rates and fees. Rather than getting stuck with just one mortgage lender, look for a few ones who can benefit you most…both online and offline. For even a quarter differences in the interest rate can be huge savings in the long run.
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