Applying For
A Home Mortgage Loan Online - The Pros And Cons
By Carrie Reeder
If you have considered applying
for a home loan mortgage online, there are a few pros and cons to think
about with getting a home mortgage loan online:
Pros:
1. The process of applying
for an online home mortgage loan is very simple, unlike some lenders who
operate in the ‘real world and ask for heaps of information.
2. The fees, when applying
for a home mortgage loan online, can be considerably cheaper than the
mortgages in the ‘real world.
3. Online home loan mortgages
tend to offer a great variety of mortgage loan programs, including more
flexible repayment terms and lower rates of interest.
4. Online mortgages are usually
easier for borrowers who have bad credit history to obtain. Also, online
mortgage loan websites do tend to offer more alternatives to those with
a bad credit history.
5. Normally you find out faster
if your home loan mortgage application has been pre- approved if you apply
online. This means you can move on and apply with other lenders faster,
if you don't get approved the first time.
Cons:
1. Not all online home loan
mortgage lenders have representation in all 50 states - so if you do apply
for a mortgage loan online, make sure they're represented in your home
state.
2. Accountability can be a
problem - you really need to stay on top of things, which can be troublesome
if you don't know what you're doing.
3. You may be getting the deal
that best suits their needs, not yours.
4. Sometimes you have to pay
an application fee even before you know if your application has been successful
- something that is not always the case in the real world.
5. If things go wrong, and
your online home loan mortgage provider doesn't come through, there's
no formal organization you can complain to.
So, while applying for a home
loan mortgage online may be a good idea, to keep your options open you
may also want to talk with a real estate broker in the 'real world' about
applying for your home loan mortgage. That way you can make your final
decision of who to go with when you are closer to locking in the loan.
About the Author: Carrie Reeder
is the owner of http://www.abcloanguide.com,
an informational website about various types of loans. To view our list
of recommended mortgage lenders online, visit this page: http://www.abcloanguide.com/mortgageloans.shtml
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