OK, so you want to buy a home, or you feel it is time to refinance the mortgage loan you already have. Great! Now what? There are hundreds of banks and other lenders on every corner, aren't there? Type in "mortgage" in Google or another search engine and thousands of sites come up. How do you sort out the players?
First of all, understand that virtually every bank and lender that has a physical branch, known as a "bricks & mortar" presence, also has a website. But not every website has a physical branch at all, or at least not one close to you. For that matter, there are banks that are online banks only, with no physical retail "stores" anywhere!
Obviously there is a huge overhead cost associated with maintaining physical locations. And that cost is passed on to customers. Simple fact of business. So a company that maintains an "online presence only" saves a lot of overhead and their prices are usually lower to reflect that.
Online mortgage sites usually invest, instead, in technology to permit borrowers to visit, read educational articles, check rates, fill out their application right there online, and come back later and log in and check their loan status. Some sites will automatically email a client whenever loan status changes.
We live, as Hillary Clinton once observed, in an increasingly "global village" today, in the early 21st century. It is no longer necessary to drive down to our local bank and apply for a mortgage. It is, in fact, no longer necessary to use our own bank at all! We can obtain a mortgage from a lender across the country if we so choose. Used to be, the "closing" had to take place in an attorney's office or title company office, in person. That as well is no longer necessary. An electronic signature is legally as valid as an original. The entire application and closing can take place via internet, email, fax and overnight courier if we desire.
One important way to differentiate a good online mortgage provider or broker from the rest? Find one that doesn't hit you over the head right away with, "We have the best rates!" The fact is, almost every lender has the same rates. The important quality you should be looking for is, what does this company offer in the way of customized personal attention and service? A mortgage is probably the biggest financial transaction the average person will ever be involved in. Financial planning is vital to make sure you get the right loan product for your individual needs and financial goals.
A Certified Financial Planner is trained to help you find the right loan.
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