Along with everything else, the internet has radically changed the housing market, and the way we buy homes and obtain mortgages. You can find out enormous amounts of information about mortgages, lenders, and anything else about the home-buying process, all online, without ever having to leave your home. Naturally, there are some huge advantages to applying for a mortgage online, as illustrated by the widely different stories of John and Jane detailed below.
Advantage #1: The convenience of online shopping
One Saturday morning, John woke up and finally decided on something he had been thinking about for a long time. He decided he wanted to buy his first home. The year was 1969 and the internet as we know it had not even been invented yet, so John had to wait until Monday before he could do anything about his decision.
Forty years later, in 2009, Jane wakes up on Saturday morning and decides she is finally going to take the plunge and become a homeowner. She logs onto the internet at home and starts surfing for information about lenders all while she is eating breakfast.
The convenience of shopping for anything at all over the internet just can not be underestimated. When it comes to mortgages, the advantages and benefits are amplified because of the complexity of getting a mortgage, and the huge amount of information you need to amass to get the process underway.
When you shop online for your mortgage, virtually everything you need is right there at your fingertips. All of the essential information is there when you need it, and that is the number one reason why applying for a mortgage online is experiencing such a massive upsurge in popularity.
Advantage #2: You save time and money by shopping online
Back in 1969, John spent some time at work phoning lenders, and then had to take several hours off work for appointments. His boss was not happy, and John did not get a Christmas bonus that year. Meanwhile in 2009, Jane had a short-list of half a dozen lenders by the end of Saturday. She did not have to take any time off work to meet with lenders, spend money on gas to get to appointments, or sit on hold on the phone before even getting to speak with someone who could help her.
If you shop for your mortgage online, you can do it any time of the day, any day of the week. You are not limited to business hours, or even to daylight hours. You can apply for your mortgage electronically and then go about your daily routine without having to worry that you will miss important phone calls from lenders if you have to leave your home. With gas prices the way they are these days, not having to drive around to appointments is just another great bonus.
Advantage #3: You can access more lenders and mortgage types online
John lived in a fairly small town, and had access to just three different lenders. After meeting with all three he ended up getting a mortgage with his current bank, because it was easier to keep all his business in the same place. He would have preferred an adjustable rate mortgage, but his bank did not offer them.
In 2009, Jane finds she is a bit overwhelmed by the mortgage choices she has, and she is not quite sure what kind of mortgage will be most suitable for her financial situation. By reading up on expert advice at some of the internet's top finance web sites, she is able to make an informed decision on the type of mortgage she wants. She is a bit stuck again when she sees how many lenders she can choose from, but again she turns to the financial sites to find out which are the most reliable and the safest.
Advantage #4: You can compare mortgages easily online
John ended up getting a bit confused when he went to his lender appointments. None of them were able to explain points, interest rates, fees, and other important things in a way that was easy to understand. In fact, one of the reasons he chose the lender he did was simply because he trusted that they were the best choice, not because he had compared the mortgages and knew it for a fact. John did not realize it, but one of the lenders he did not choose was offering a points deal that could have saved him around five thousand dollars.
Jane, on the other hand, found several web sites with some easy-to-use mortgage comparison tools that made choosing the best mortgage options a breeze. She read up on interest and points, and decided it would be a good strategy to buy points to reduce her interest rate. A move like that will save her more than ten thousand dollars over the life of the mortgage.
Some people search the internet to find a mortgage lender so they can take advantage of all the resources the web has to offer. Many prospective buyers find the internet has the most helpful tools and information to be accessed at one time than any other resource. Hundreds of lenders now provide online services by way of websites. There are also many lenders which are exclusively web-based.
Often online mortgage brokers will offer exactly the same products that the traditional brick and mortar mortgage broker will have access to. Instead of having to get out of your house and travel many miles to meet with a traditional broker, you could just do all of your mortgage searching from the comfort of your own home. All you need to do is to have all the relevant information to fill out an electronic application form, which you can obtain from the prospective lender. You need then to fill out the loan form to receive a loan quote. An added benefit of using the internet is that after asking for many different quotes from lenders there is no feeling of an obligation to take anything as you are not in direct contact. What you are doing is searching the online mortgage market for the best deal that you find.
Before you start your online search for mortgage quotes it is advisable that you have certain, important data at your disposal. You will have to reference this material to fill out the electronic applications. Historic tax records and personal account details would be worthy examples of this data. Before you start searching the market it may be best if you had some information that you could make comparisons with, such as costs that would be encountered with your current loan and also the possible down payment.
Getting an online mortgage quotation is simple - just visit the website that you want a quote from and fill out the online application correctly. The loan amount, personal income and credit history will all be questions that are asked on the form. When this information is entered into the mortgage quote calculator, you can expect to receive a quote within a matter of minutes.
The large incentive of using the internet is that you get your quote instantly after making the request. Generally, this will cut down on the length of time that you need to wait before you can view many online mortgage quotations. You can compare several quotes and start to narrow them down to the best offers. You can use the best offers on the list and then fill out more forms that offer more detailed accounts of the different factors which will contribute to the total cost of your loan. After you complete this you will have a better chance to have access to some of the best mortgage quotes available online.
After you have settled on which mortgage lender you wish to proceed with, the process of getting your loan should be relatively straight forward. In a relatively short space of time, you may possibly be entering your new family home - just waiting to be filled with your personal belongings and memories.
Both Porter & Gary Milton are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Porter has sinced written about articles on various topics from Finances, Finances and Home Improvement. Ryan Anderson is a freelance writer who writes about financial products and comments on mortgage industry news such as the .. Porter's top article generates over 4400 views. to your Favourites.
Gary Milton has sinced written about articles on various topics from Auto Insurance, Finances and Gucci. Gary Milton has written numerous mortgage related articles and other financial topics. He also provides content for both Rebuild for and also Glitec. Gary Milton's top article generates over 1900 views. to your Favourites.