| Let's
start with the advantages of online
mortgage lending.
Online
mortgage lending
is a growing field that is starting
to seriously compete with traditional
'in person' lenders. The process is
relatively easy. The important thing
to remember is to make sure your know
the ins and outs of any and all online
home mortgage loans prior to submitting
your personal information.
In
some cases, you'll find online mortgage
lending fees can be much cheaper
than traditional 'in person' lenders.
Further,
when it comes to online mortgage
lending you may discover a greater
range of mortgage loan programs available.
Among the highlights of these programs
may be lower rates of interest and flexible
repayment terms.
Also,
borrowers with a bad credit history
may find online mortgage lending
to be the answer to their prayers. In
most cases, web-based lenders offer
more alternatives to those with less
than desirable credit ratings.
Finally,
online mortgage lending can shave
a ton of time off of the traditional
'in person' route and having to wait
(what might be several days) to be approved.
The bonus here is if you don't get approved
the first time, you can apply to another
lender right away and like the first
time, you'll get your answer quick.
Now
let's explore the disadvantages of online
mortgage lending.
It's
important to realize that not all online
mortgage lenders have representation
in each of the 50 states. Before taking
the time to apply online, it's in your
best interest to make sure that the
lender in question is represented in
the state in which you reside.
A
big negative with online mortgage
lending is unfortunately accountability.
It's your job as the potential borrower
to do your homework and keep on top
of your application. It's wise to check
out the company to make sure they're
legit and will be able to fulfill any
promises they make regarding terms and
interest rates.
Unfortunately
with both traditional and online
mortgage lending, the mortgage loan
programs offered may be more in lender's
best interest than in yours. Again,
it's so very important that you do some
research and comparison shopping. Just
like with traditional 'in person' lenders
you want to make sure that any online
mortgage lending is in your best
interest not theirs.
Another
possible negative is the fact that some
online mortgage lenders will
charge you a fee prior to you learning
whether or not your application has
been successful. Please note that some
traditional lenders also ask for a fee
upfront. Borrowers beware - there are
many legitimate traditional and online
lenders than don't insist on such a
fee.
Unlike
any negative dealings you may have with
traditional mortgage lenders, online
mortgage lending isn't regulated by
a governing organization in which you
can complain to.
The
bottom line is that while online
mortgage lending may be the way
of the future, it's also important to
research the lender and ask the right
questions. And, while applying for a
mortgage loan online may seem like a
great idea, don't discount the value
of getting a comparison quote from a
traditional 'in person' lender.
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