The internet has meant that many transactions that once had to be done in person can now be accomplished online, such as applying for a mortgage. It is relatively easy and straightforward to compare costs and services from different lenders, although in general you should limit your search to major brokerage firms or well known banks. When it does come time to sign all those mortgage papers, it can be done easily in your home or local bank. You will however need to be accompanied by a notary
Most online lenders have a feature called a mortgage calculator, or something similar which will give you some idea of how much house you can afford, what the interest rate on your mortgage will be and how much your monthly payment will be. Most of these mortgage calculators are easy to use and once you have provided the information on a particular site, it should retain it so you don’t have to re-enter it. Some sites allow you to enter some of your information and then return at a later time to complete the inquiry or application without starting all over again.
The online application process generally works the same way, regardless of which lender you use. After supplying basic information, your application is looked over and a tentative decision is made. Somebody from the lending company will probably contact you at some point, either by phone or email. At this point, you will have to provide your social security number and there is a good chance a credit report will be requested. Even though you applied online, it’s important to remember that you should be able to call someone if you have any questions or issues.
Some sites allow you to provide your information to apply for a loan, and then they will submit this information to several other lenders who will then all make an offer available to you. LendingTree is perhaps the most well known of these sites, although there are quite a few others others. The obvious advantage is that it saves you from having to shop around and submit the same information over and over again. You can also be assured of receiving competitive rates. Not surprisingly, these sites are extremely popular. LendingTree alone estimates around 20 million people have used their service.
Most of these sites are fairly easy to use and some have live customer service in the form of online help in case you get stuck navigating the site. Depending on the site, the results of your enquiry or application may not be immediate. You may have to wait some time before accessing them or having them emailed to you. Once you receive your offers and look them over, you aren’t obliged to take any of them, even if you don’t, it’s a quick and convenient way to get an idea of what the options are that might be available to you.
Although most sites that you use during this process are secure, you should always be on the lookout for fraud and phishing web sites. Some sites, in particular those in which you are supplying a large amount of personal information will sell your details to other companies, some of which may have nothing to do with applying for a mortgage. You may find that your in-box is suddenly inundated with unwanted emails; or worse, you could be a victim of identity theft.
There are definitely some clues that a web site isn’t all it appears to be. Be wary of a company that doesn’t seem to have an address or a phone number. If in doubt, it is best to just not use that site. Another indication that the site is safe is a little padlock symbol in the bottom right hand corner of the screen if using Internet Explorer; if using Netscape Navigator, a key symbol will tell you that the site is secure. You can also check the web address of the page you are on. If it is a secure page, the address will generally read “https” instead of “http.” On a secure site, you can give out personal details or your credit card details without any worries.
If you are refinancing, that too can easily and conveniently be done on line. Both the shopping around for rates or lenders and the overall application, it can be done is a secure manner online. You can also apply for a fixed-rate mortgage, an adjustable mortgage, or a combination of the two. You can also specify the term of your mortgage, anything from 10 to 40 years. In fact these days, there aren’t too many financial transactions that can’t be processed online. Just use your common sense when giving out personal and financial information. If you are having doubts about a particular site, pick up the phone and call the company instead. It’s better to be safe than sorry.
Shawn Thomas is a freelance writer who writes about economic issues and financial products pertaining to the mortgage industry such a fixed rate mortgage as well as the lowest mortgage rates