When was the last time you walked into a physical bank? Many people have moved all of their banking services to the internet, both to reduce costs and for convenience. A mortgage doesn't have to be any different. You can apply for mortgages online rather than going into a brick-and-mortar bank chain. Here are some of the advantages of online mortgage services.
You Have More Loans to Choose From
You can apply for dozens of mortgage loans online at the same time that it would take to apply for a single loan in person. Don't worry: this won't hurt your credit score. Multiple mortgage loan inquiries only hit your credit score once, combined.
In addition to being able to send in applications with multiple mortgage companies, you'll also have a wider variety of loan types available. The mortgage companies in your area may only underwrite conventional loans, whereas online you may be able to access FHA, HomePath, and USDA loans with ease.
The Application Process is Faster
Your application will consist of filling out your basic information and then sending it through to the online loan servicing company. They will then let you know whether you can be pre-approved, often automatically. You can send in further information to get an in-depth re-qualification, which will give you a more accurate picture of the loan that you would be approved for. Overall, you'll get correspondences faster online as you won't need to wait to make appointments and phone calls.
You Can Get a Cheaper Rate
Online bank accounts are cheaper because they don't need to pay for the overhead of brick-and-mortar locations. Mortgages operate similarly. When a mortgage company doesn't have to invest in a physical location, they can pass those savings onto you. Online mortgage companies also have more competition, so they have to provide the lowest possible rates.
They Have Better Technology
The same technology that makes it easy for you to apply for a loan will also be used to service your loan. With an online lender, you'll be able to check your balance whenever you want to. You can make payments online, schedule automatic payments, and make changes as needed.
Of course, there is one thing you should keep in mind when applying for a loan online: security. Make sure to secure all of your personally identifiable information before you send it through email or the web. Other than that, the process should be a smooth one.
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