Nearly everything done in the business world is through the internet. The mortgage industry is no different. Technology has made business easier than it has ever been to conduct. People have the whole world at their fingertips through their smart home. Homebuyers can take advantage of the internet while buying a home and finding a mortgage. It has never been easier or safer to find a trustworthy online lender who will find you the most competitive rates.
Online mortgage lenders are held to the same standard as brick and mortar lenders. They meet all of the same licensing requirements, follow all of the same federal mortgage regulations, and use all of the same mortgage loan documentation.
The operations for online lenders are the same as a brick and mortar institutions, they just don’t have an actual building for you to go into. Let’s face it, most people don’t meet face to face with their mortgage professionals any longer. All interaction is done through phone calls and emails. It is inconvenient to meet at a financial institution during normal business hours so even traditional lenders utilize technology to meet the needs of consumers.
There are many resources available online for you to check the integrity of an online mortgage lender. With a small amount of research you can be rest assured that your online mortgage lender is reputable.
Advantages of Using an Online Lender:
Not only is it safe to use a online mortgage lender, but it is actually more beneficial. There are numerous advantage to applying for a mortgage with an online lender.
By using an online lender you can fill out an application, submit documents and correspond with your mortgage loan officer during the hours that best suit you. You aren’t confined to normal business hours to make handle your mortgage needs.
The application is easier to fill out. Most often online lenders take the time to make their applications less extensive to fill out. This saves you time and hassle. You have the ability to fill out a mortgage application while eating dinner or watching TV. Check out our application forms for a mortgage pre-approval or a mortgage refinance. At Loanatik we require minimal information to process your application. Apply online today to experience our user friendly, simple application.
Consumers can avoid time spent commuting to and from in person meetings with your loan officer by using an online lender. Waiting in the office for your mortgage loan officer to be ready is a nuisance. You don’t have to take time out of your already busy day to meet face to face, just call or e-mail your loan officer and get your questions answered quickly.
You can end up savings thousands of dollars by using an online lender. Most online mortgage lenders have lower rates and fees than their traditional counterparts due to the competition of other online lenders. A lower interest rate on your mortgage will save you thousands over the years you pay on it.
Online lenders also have lower closing costs since they don’t pay for the overhead costs traditional lenders do. This can save you over a thousand dollars at closing time.
Your loan is more likely to be approved. Online lenders have access to more underwriters, so they can shop around your application for approval and ultimately the lowest rate possible.
Online lenders get underwriting decisions much quicker than traditional lenders. They have access to a wider pool of underwriters and you’ll receive your decision very quickly. Fill out a mortgage loan application today to see what you are pre-qualified for.
Online lenders also have the ability to process your loan much quicker than a traditional lender. Their processing will have you signing closing documents sooner than you expected.
When to Take Caution:
Many consumers are concerned with the increased risk of fraud by using an online mortgage lender. While there are certainly scammers out there, they are relatively easy to avoid. Here are some of the red flags to notice about an online mortgage lender:
• No license. If an online lender is not properly licensed they are not trustworthy. Each financial institution has its own NMLS number and the mortgage professional has their own unique identifier as well. Look up the NMLS number for any mortgage professional on their site to verify that their licensing number is legitimate and up to date.
• Never pay for a pre-approval or a quote. Mortgage lenders do have fees to cover your appraisal, credit check and other application expenses, but you shouldn’t be paying this upfront. If an “online lender” asks for an upfront fee, look into other options, they may just be looking to collect money from you and never follow through.
• Rates that are significantly lower than other online lenders. Although lenders have the capability of offering lower rates online, it is a cause for concern if one online lender has rates that are completely inconsistent with competitors. This can be a way to lure you into applying. Later, after filling out an application they may tell you that the introductory rate has expired and quote you a higher rate.
Credentials to Look For:
Every mortgage professional is required to be licensed through the Nationwide Mortgage Licensing System. They have to adhere to federal requirements and meet the individual criteria of each state they are processing mortgages in. Mortgage professionals undergo an extensive mortgage course, take a licensing test and are required to perform a certain number of hours of continuing education each year.
Many mortgage brokers are a part of organizations that uphold their reputation. Look to see if your lender belongs to organizations that monitor the integrity of your lender.
Some organizations to look at:
– Better Business Bureau
– Online Lenders Association
– Consumer Financial Protection Bureau
Look to the Consumer Financial Protection Bureau to see if any fraud complaints have been filed against a lender. If you do not see any listed you can feel assured that the lender is reputable. Remember, that a lender is not required to belong to organizations like the Better Business Bureau or the Online Lender’s Association. Although belonging to the groups is an indicator of exemplary business practices.
All mortgage lenders are required to adhere to the Fair Housing Act. The Fair Housing Act prohibits any type of discriminatory practices against applicants based on age, race, ethnicity and location of a property. If a mortgage lender is in compliance with the standards and regulations of the Fair Housing Act than they are an Equal Housing Lender.
At Loanatik we strive to make the mortgage loan process simple and seamless all while saving our consumers time and money. Our innovative software requires minimal information from the consumer and will perform automated underwriting on your loan.
Experience lending with integrity and proficiency- apply today for a Loanatik mortgage and experience stress free mortgage lending.