Online Lending: Pros and Cons
Pros: Online lenders usually offer competitive interest rates and convenience and If your credit profile is good, you can find yourself prequalified for multiple types of mortgages within a short time. You may even get multiple offers from various lenders through mortgage portals like lending tree. Most online companies use traditional approval and funding systems.
Cons: Online lenders face less accountability, may not have earned their reputations and may not even have the legal authority to make loans in your area. Internet suspicion may still be too big a deterrent for you. Local lenders are more accountable, easier to reach once the process has been engaged and most importantly the relationship value. Local lender depend on referral business and the only way to gain referrals is by providing outstanding service to their clients and realtor partners.
Take the following precautions: A poorly designed site is a bad sign. If you can’t learn anything about the company, try another. Ask your Realtor for names of reputable online lenders. As a part of my service for all clients, I have multiple lending partners that specialize in certain mortgages. By starting the process with an experienced Realtor that you feel comfortable with and confident in, you essentially have the eliminated the worry about whether the mortgage terms you are engaging in are best suited for you and not most profitable for the lender. Myriad Real Estate Services wishes Happy Home Hunting!