What You Have To Know About The Pros And Cons Of Getting A Mortgage Online
Everything to know about the pros and cons of online mortgages in under a minute
Taking out a mortgage is a big financial responsibility. But 77% of homebuyers still don’t shop around and compare multiple mortgage offers.
They apply at their local bank or with a mortgage broker and assume whatever they’re being offered has the best terms and the lowest interest rate they can lock in.
But those same consumers wouldn’t settle for only one offer when shopping for anything else.
This is where online mortgage marketplaces have changed the game - but not without a few hiccups.
Here is everything you need to know about the pros and cons of getting a mortgage online in under a minute.
1. More options
When you walk into a local bank or credit union the mortgage terms they offer will always be limited. They’ll offer a standard mortgage requiring a 640 credit score and at least a 5%-10% down payment.
But leading online mortgage marketplaces like LendingTree offer more robust options, especially to consumers strapped for cash or with poor credit.
First time buyers and veterans especially have access to home loan programs on LendingTree that dramatically improve their loan terms and that they won’t find at their local bank or broker.
2. Lower rates
The biggest advantage to using an online lender is that you can expect the most competitive interest rate.
Because it’s so easy to fill out an online loan application and get a quote in minutes, online lenders have to offer the most competitive rates possible or they won’t earn your business.
This means that LendingTree will easily find you a rate that beats the one you were quoted from your bank.
3. You never have to show up
Whether it’s a busy schedule or financial stress, that last thing many people want to do is show up at their local bank to fill out forms and negotiate the terms of their mortgage.
It’s not only stressful, it wastes time.
When you’re shopping for a mortgage online, the entire process from application to approval happens fast.
What would have taken you a few hours at your bank for one quote, you can do online in a few minutes for multiple quotes.
1. Personal connection
Online lenders are all about volume so most of the actual loan officers working behind the scenes are kept very busy.
As a result, customer service won’t have the same personal touch you’ll find at a bank.
2. The fine print
Because the entire process from application to approval happens online, you’ll be expected to read all of the terms carefully yourself.
You have to look closely and ask lots of questions to make sure there are no surprises.
Looking for more information? Compare more online mortgage companies here.