Letís start with the
advantages of online mortgage lending.
Online mortgage lending
is a growing field that is starting to seriously compete with traditional
Ďin personí 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
In some cases, youíll find
online mortgage lending fees can be much cheaper than traditional
Ďin personí 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 Ďin personí
route and having to wait (what might be several days) to be approved. The
bonus here is if you donít get approved the first time, you can apply to
another lender right away and like the first time, youíll get your
Now letís explore the
disadvantages of online mortgage lending.
Itís important to realize
that not all online mortgage lenders have representation in each of the 50
states. Before taking the time to apply online, itís 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. Itís your job as
the potential borrower to do your homework and keep on top of your
application. Itís wise to check out the company to make sure theyíre
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 lenderís best interest than in yours. Again,
itís so very important that you do some research and comparison
shopping. Just like with traditional Ďin personí lenders you want to
make sure that any online mortgage lending is in your best interest
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 Ė there are many legitimate traditional and online
lenders than donít insist on such a fee.
Unlike any negative dealings
you may have with traditional mortgage lenders, online mortgage lending
isnít regulated by a governing organization in which you can complain
The bottom line is that
while online mortgage lending may be the way of the future, itís
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,
donít discount the value of getting a comparison quote from a
traditional Ďin personí lender.