Online Mortgages: The 2 Golden Rules
If you’re looking for a mortgage these days you’ll have many more options than previously, thanks largely to the Internet. Not only is it easy to find a property online with property sites such as Fish4, but shopping for a mortgage lender online can also save you a lot of time, energy and money, as there are now hundreds of mortgage lenders offering quotes and even processing mortgage applications over the Internet. Lender's overheads are reduced and this can often translate to better interest rates for borrowers as the industry become more competitive. Online lenders can often tell you whether or not you have been pre-approved within 24 to 48 hours after you submit your application.
The consumer is gaining control with brokers and lenders willing to offer better deals now able to access them more easily through mortgage leads online. As well large banks and mortgage companies with an online presence there are more private lenders getting in the game offering comparable and often extremely competitive services.
Consumers can now research all manner of information they need online, at home, without having to make endless phone calls and gathering piecemeal information. As well as researching mortgages, there are articles, informative sites such as moneysupermarket.com and suppliers of mortgages, such as Natwest and Alliance and Leicester, who can help with any questions you might have. The Internet is proving a fabulous resource especially great for first time homebuyers.
There are however 2 golden rules that should be kept in mind when considering purchasing a mortgage online.
1. Do your homework.
Borrowers can research mortgage quotes and terms quickly from a huge number of different lenders or other sources. In fact, there are many sites such as mortgages.co.uk that have agreements with hundreds of lenders aggregating quotes. Input your specific details and get 10 quotes from 10 different competing lenders.
Mortgages can be complicated. Do bear in mind that online the quote you get may not be as accurate as one you'd get in person. There are many variables in the mortgage process (credit history, debt to earning ratio, etc.), and a website can't necessarily consider them all. Nor can it necessarily answer all your questions or give absolutely specific advice. The calculation process, though ever more sophisticated, largely relies on formulae and can lack an element of nuance or subtlety. It’s worth taking at Beat That Quote – a comparison website - for details of loans, mortgages and other areas of financial management.
That's not to say online mortgage companies can't answer questions and handle unique circumstances — they just can't always do it as effectively through their websites as a face-to-face consultancy.
2. Due Diligence.
Do take care though when sharing information online. In spite of the many benefits offered by the Internet, there are security issues to address. Make sure that companies you are in communication with are reputable and are qualified to be doing business. Check for licenses, certification, referrals, testimonials, and other information establishing validity. Stick to the companies and names you trust and ask for references. Be cautious of predatory lenders.
Don’t pass on too much personal information for just a quote and be careful of transmitting financial information over the Internet. If it makes you more comfortable use the phone to talk to people personally.
