Online mortgage lenders typically offer the best rates, but do you know who you are working with? In this article, we tell you how to pick the best online mortgage lender. Read on!
Things to Consider when Picking an Online Mortgage Lender
There are a number of online mortgage lenders, but some are likely to be better than others. When researching your online mortgage loan options, asking yourself these simple questions can help you find a good lender:
How Convenient Is the Lender to Work With?
Mortgage loan providers work differently. If you choose to borrow a loan from a traditional lender, you will likely have a few face-to-face meetings with the lender. Many borrowers find this reassuring because they can have all their questions answered during these meetings.
In comparison, if you work with an online lender, you will be completing the entire application process online. All the documents that you need to submit will have to be sent to the lender via mail, fax, or email. Many online lenders offer excellent customer service, so you can reach out to the reps virtually or via phone to help you through the application process.
How Reputable Is the Lender?
It’s important that you check just how reputed the lender is before you get the application process started. You can do this by checking reviews left by customers online and evaluating your customer service experience with the lender. Of course, all lenders will have their share of unhappy customers, but these should be rare occurrences.
Does the Lender Offer Good Rates?
When you are borrowing around $200,000 (or more), even a small difference to your interest rate can add thousands of dollars more to your lifetime interest charges. This is why it’s important to compare different mortgage loans online and opt for a loan with the best rate.
What this means is that you will likely have to go through the pre-qualification process with a number of lenders, so you are able to do a thorough comparison. When rate shopping, mortgage loan comparison sites can be especially useful since you can view an estimate of the rates charged by different lenders in a single place.
The Bottom Line
Online mortgage lenders can make the loan approval process pretty painless and quick, provided you find the right lender!