5 Advantages of Getting Your Mortgage Online
In the past, the mortgage process was tiring and time-consuming. It involves a lot of paperwork and a series of back and forth communication with your lender or mortgage broker. Fortunately, with the advancement of technology, getting a mortgage is now possible online.
Whether you are buying or refinancing a home, digital mortgage applications make the process faster and more convenient. It saves you from a pile of paperwork, outlandish fees, and long waiting times. By filling up the form on the mortgage website and providing your necessary details, you can expect a pre-approval answer within the day.
How the Online Mortgage Application Process Works
Nowadays, most mortgage companies, banks, and credit unions are offering online mortgage transactions. From application, signing the documentation, to closing, the process is done electronically - from the comfort of your home. Lenders can access your financial information, review it, and make an approval decision.
However, not all online mortgage lenders provide the best mortgage options. It is your job to review several websites and compare their fees and interest rates to each other. From there, you can weigh the most suitable options according to your needs and current financial situation.
As more first-time home buyers are entering the real estate market, the need to seek out mortgage lenders is growing. Thanks to modern technology solutions, this demand is easily met by online mortgage services - giving convenience to both loan officers and loan applicants.
Below are the benefits of getting a digital mortgage:
1. Convenient and faster processing time
Online mortgage sites allow you to speed up your loan application process. You do not have to physically visit your mortgage lender and deal with a lot of paperwork. Instead, you can browse several mortgage options online and apply through their website.
You can effortlessly upload copies of your documents such as tax returns and bank statements, and sign documents and disclosures electronically. Borrowers can complete the application process anytime and anywhere without the need to meet or call the loan officer to process the documents.
2. Lower Fees
Online mortgage lenders do not have the overhead that brick-and-mortar lenders have. Their process is done digitally and automatically, and does not require huge upfront costs. With this, digital mortgage lenders can offer you the most competitive rates and fees possible. This massive change in costs can save you thousands of dollars over the life of the loan.
3. Get Quotes From Multiple Lenders Easily
Going to local banks or credit unions will cost you more time and energy. Also, home buyers can find a bunch of valuable programs online that bank institutions may not have access to. Shopping for a loan online is easier as you can hop around websites and look at the services they can offer.
You can compare the different interest rates and fees and maximize your opportunities to find the best terms. By applying for an online mortgage, your application can get quotes from multiple lenders, something that traditional mortgage brokers can't provide instantly.
4. Financial Flexibility
After agreeing to a mortgage at your most comfortable finance rate, you are given options to adjust your payment plan from your loan browser. You can request a change in structuring in case your financial situation becomes unstable.
Digital mortgage lenders allow financial flexibility where you can have a chat with an agent to discuss the terms of your mortgage and negotiate new rates. This is the opposite of going to a bank and applying for restructuring where most of the time, you do not have complete control of the payment plans.
5. Higher Chances of Approval
Your credit score matters a lot when it comes to mortgage approval. For most banks and traditional lenders, borrowers must meet a minimum credit score threshold before their mortgage application gets processed and approved.
Since online lenders are not banks, someone with a low credit score can still be granted a chance of being accepted. Though your mortgage rate may vary, it is still better than getting your loan application denied. Most financial institutions require a credit score of at least 640 while some digital mortgage lenders grant a credit score of 540 or less.
Get started with your Digital Mortgage
Although online mortgage solutions can provide you with plenty of advantages, remember that it is not always the best option for everyone. The convenience, low fees, and speed of the application process should not be your major reasons when deciding to use a digital mortgage lender.
Do not rush the home buying process and embrace the journey. Perform your due diligence and conduct thorough research on the best available options, so that you can come up with the most appropriate financial decision.
You can ask for our guidance and we will be happy to help you find the right mortgage solution for you and your family. Contact our representative today to get started.
* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.