Do you have any advice about online mortgages? Online or internet mortgages are only as safe as the internet itself; when choosing an online company, do your homework on the company before jumping into a loan.
Keeping pace with many other businesses, mortgage lenders have turned to the internet as a way to provide their services. "Online lenders and traditional lenders may offer many online services," says Stephen Edwards of Waterfield Financial Company, the nation's largest privately owned mortgage company. In fact, both online lenders and traditional lenders offer a variety of mortgage tools, mortgage calculators, and mortgage information online.
"Online mortgages are becoming more popular," comments Edwards, a qualified mortgage consultant. A whole new market of customers is available to lenders, once they open their services to the internet.
First time or repeat buyers may like the anonymity of the internet, as well as the ease with which they can navigate through a wealth of mortgage information. The entire mortgage process, which includes research, pre-qualification, and application, can be shortened considerably.
Not to mention the fact that a variety of online mortgage calculators make comparison shopping for the best interest rate that much simpler and quicker. Plus, Edwards notes, "Lots of lenders have e-signatures now." He clarifies that typing your name is considered an e-signature, and a lot of lenders are going to that.
Edwards states, "All lenders have regulatory guidelines. There is no difference in what they [online lenders and traditional lenders] have to report to the federal government." Basically, both types of lenders have to abide by the same rules. It comes down to what the customer prefers. "Many people like the perception of anonymity when dealing with mortgages, and that is why they choose to go online. Others prefer the security of face to face interaction," comments Edwards.
Edwards says that a lot of people think that you can process all of the necessary information on the internet, but not everything can be done online. He explains that online services are only a tool to get the information more efficiently. Certain services or processes will need to be done either in person, by telephone, or through a fax.
"Actually, a lot of the time the online lenders will contact somebody on the phone for the actual loan process. They may e-mail you or make it [necessary forms and paperwork] available on their website." Edwards stipulates, "When it comes to getting the information to them, you still have to fill out the pay stub info, fax the W-2, and fax the bank statements to them."
Edwards reminds the borrower that it will be necessary to finalize the mortgage process in person, "When it comes to closing, they [the lender] will contact a title company or an attorney in your area to close the loan. You still have to go to specific people and sign out papers for the closing."
Edwards advises the borrower to remember that "online lenders are really only as safe as the internet itself. You hear all the time about hacking people's personal information." Protecting your information that you enter online is as simple as installing security software. If the borrower takes normal precautionary steps, online lending is a safe process.
