If you have considered applying for a home loan mortgage online, there are a few pros and cons to think about with getting a home mortgage loan online:
Pros:
1. The process of applying for an online home mortgage loan is very simple, unlike some lenders who operate in the ‘real’ world and ask for heaps of information.
2. The fees, when applying for a home mortgage loan online, can be considerably cheaper than the mortgages in the ‘real’ world.
3. Online home loan mortgages tend to offer a great variety of mortgage loan programs, including more flexible repayment terms and lower rates of interest.
4. Online mortgages are usually easier for borrowers who have bad credit history to obtain. Also, online mortgage loan websites do tend to offer more alternatives to those with a bad credit history.
5. Normally you find out faster if your home loan mortgage application has been pre–approved if you apply online. This means you can move on and apply with other lenders faster, if you don’t get approved the first time.
Cons:
1. Not all online home loan mortgage lenders have representation in all 50 states – so if you do apply for a mortgage loan online, make sure they’re represented in your home state.
2. Accountability can be a problem – you really need to stay on top of things, which can be troublesome if you don’t know what you’re doing.
3. You may be getting the deal that best suits their needs, not yours.
4. Sometimes you have to pay an application fee even before you know if your application has been successful – something that is not always the case in the ‘real’ world.
5. If things go wrong, and your online home loan mortgage provider doesn’t come through, there’s no formal organization you can complain to.
So, while applying for a home loan mortgage online may be a good idea, to keep your options open you may also want to talk with a real estate broker in the 'real world' about applying for your home loan mortgage. That way you can make your final decision of who to go with when you are closer to locking in the loan.
To see our list of recommended mortgage lenders online, visit this page: Recommended Mortgage Lenders
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans. The site has informative articles and the latest finance news.
