Applying for Home Loans Using Online Filings
How do you know if online mortgage lenders are real lenders or just con artists? Well, the short answer is: No. Online mortgage lending companies are allowed to charge all manner of fees and charges, but they are not allowed to tell you up front that they are taking your money. As a matter of fact, they are allowed to take your money, then disappear into the night. Only later do they start calling you with various bogus online lending programs and asking you to fill out yet another credit card application.
In a nutshell: Any online mortgage lender that allows you to apply for a loan through their site may be considered a conventional lender. However, that’s not all. The process simply begins online. You will still need to fax or mail in a variety of personal information or documents prior to you receiving final approval for a loan. If they want your money, they will ask for it.
There are a few things that you should watch out for when dealing with online mortgage lenders. First, if a lender contacts you at work and asks you for personal information or paperwork, do not give it to them. They most likely have a loan officer calling you at work and they will try to get you to sign as many loans as possible. If you find yourself working with a “so-called” online lender, do not let the lender talk you into anything that is not good for you.
If you have already applied and been approved for a conventional loan and you are now being called by a “so-called” online lender, don’t give up. Call the lender back and let them know that you have received a rejection. Tell them that you have called back with your information and your financial information and that you have found the lender’s information to be accurate. Ask them how they can help you. Be sure to let them know that you have a close friend that could help you.
Most lenders will offer you the ability to re-apply with them again if your credit score changes. Some may even allow you to go back to an earlier date. You should not accept any offers until you receive written rejections from all three lenders. Never agree to any type of loan until you are satisfied with the offers that are presented to you. There are many advantages to applying for a home loan online including:
The convenience of applying for these loans online allows the borrower to go through the loan process from their computer. In many cases, there is no lead time needed for the lender or mortgage brokers. Once the borrower has decided on a lender, the borrower can fill out an online application. There will be no need to fax or mail any documents to the lender. The loan amount and terms will be determined by the mortgage lenders based on the borrower’s application.
Online mortgages from some lenders do not require a minimum credit score or income level. This is because these lenders specialize in loans that do not require a credit score or income level. There are also different online programs available from different lenders.
Mortgage brokers do not provide any type of application process or service. The main advantage of working with mortgage brokers is that they help the borrowers obtain mortgage loans from multiple online mortgage lenders and brokers. They do this by putting the borrowers in touch with multiple lenders who offer different terms and interest rates. By taking advantage of the brokers’ services, you are saving valuable time. There are also many fees that are passed onto the borrowers.