Getting Mortgage Quotes Online
- Safely and Smartly
by Brandon Cornett
The Internet has changed nearly
every aspect of the real estate process,
and that includes the way we research,
compare and apply for mortgage loans.
These days, you can use the Internet
to save time and energy when shopping
for home financing. But there's a
right way and a wrong way to go about
it.
In this article, I'll explain the
process of obtaining quotes from
lenders via the Web, and how to do
it safely and smartly.
Unbiased Advice for Consumers
It's customary to withhold the author's
bio until the end of an article.
But I feel it's necessary to share
something about myself at this point.
Many of the mortgage advice articles
you find online these days were written
by the lenders themselves (or ghost-written
on their behalf). But these authors
are clearly biased when it comes
to this subject. They want to sell
mortgage loans -- it's what they
do for a living. So their articles
are written to educate readers toward
a certain product or service.
On the contrary, I am not selling
mortgages. I publish a consumer-oriented
website full of helpful, unbiased
information on this subject. So the
purpose of this article is not to
educate you toward a certain product
or service, but merely to educate
you.
The Benefits of Online Quoting
Let's talk for a moment about the
benefits of getting home loan quotes
via the Web. The first and most obvious
advantage is convenience. Before
lending institutions embraced the
Internet, you had to spend a lot
of time on the phone in order to
get multiple quotes. Or even worse,
you had to drive around town to local
branches and offices.
Using the Internet,
however, you can fill out a simple
form on a mortgage "aggregator" website
and get offers from several lenders
in response. This is a big time-saver,
and it makes life a lot easier. But
it's not the only benefit of using
the Web.
You also have access to a wider
variety of mortgage products when
you use the Internet to obtain quotes.
Some lenders specialize in a certain
type of home loan, while others offer
a broader range of packages and terms.
The Internet opens all of these possibilities
up to you. As a direct result, you
are more likely to find a mortgage
product that matches your financial
needs.
Being Smart About the Process
Anytime you conduct financial business
online, you have to be smart and
cautious in order to protect your
identity. That applies to getting
loan quotes as well. So let's talk
about the ways you can be a smart
consumer when shopping for mortgage
offers via the Web.
- Use Trusted Websites --
The big names you see on TV all
the time (Lending Tree, Ditech,
Eloan, etc.) are usually your best
option, in terms of security and
trustworthiness. These companies
have a lot at stake, so they take
things like Internet security very
seriously. In other words, stay
away from "Joe's Mortgage Emporium" and
other questionable websites.
- Learn Your Credit Score --
When you request quotes from multiple
lenders, they will present you
with some basic information. After
all, they can't fully qualify you
for a loan or determine the interest
rate until they conduct a more
formal review of your credit and
financial history. So if you know
your credit score in advance (and
whether you are at, below, or above
the average), you'll be able to
determine how realistic those quotes
are.
- Determine Your Own Budget --
Don't let a mortgage company suggest
what you can or cannot afford,
in terms of a monthly payment.
You have to determine that for
yourself. A lender can only tell
you how much of a loan they'll
offer you -- not how much you can
realistically afford. So use mortgage
calculators and other budgeting
tools to find out what your limits
are with regard to monthly payments.
Conclusion and Summary
The Internet can certainly save
you a lot of time when shopping for
a home loan. It can also open up
a wider range of mortgage products
and terms. But like any other financial
process, you have to be smart about
getting quotes online. Stick with
reputable companies and websites.
Conduct a financial self-assessment
of your own. A little homework goes
a long way.
About the Author: Brandon
Cornett publishes a blog about home
mortgage refinance as well as
several other websites for consumers.
Visit the author online at http://www.mortgage-refinance-advice.com/blog/