Online mortgages are slowly becoming the norm for many consumers in the market for a new home. Studies have been showing that almost 50% of potential home buyers are opting for online mortgages. This is due to the fact that there have for the longest time been only traditional mortgage options. As opposed to traditional home loans, online mortgages are proving to have much lower interest rates than traditional mortgage loans.
What creates such a draw to obtaining online mortgages is the speed with which one can complete his or her transaction. Many times, the loan decision is automated, lending speed to the sometimes lengthy traditional method.
Another draw to an online mortgage is the ease with which one can apply. Potential borrowers can also catch a glimpse of their credit reports, appraisals, and title insurance. As the loan is being validated, there is constant contact via email to let the potential borrower know his or her status at any given time in the process. Many individuals like this convenience, as they do not have to be stuck in a mortgage office of tied to a telephone line for hours waiting for an approval.
In traditional mortgage options, there are a great number of individuals involved, from the application to the approval or denial. With online mortgages, there are virtually no excess steps involved. This speeds up the process for the lender as well as the borrower, and saves time and money for all parties involved. The only drawback for some is that they are still unsure of the security of online transactions.
This is due to the fact that once one places his or her name on an application, most times the company to which the individual applied will use the information as long as they need to, and then sell the information to a third party company. This company then bothers the individual, sometimes with many phone calls. Once this company has gotten their use of one’s information, they turn around and resell the information. All of this passing of one’s personal information can lead to identity theft cases, although this is rare. But, people should be aware of the risks that are associated with doing business online that involves the use of his or her personal identifying information.
With that said, however, it should be noted that not all online mortgage firms are bad. There are great prospective companies with which to do business to purchase one’s next home. Customers understand the value of saving time and money by applying online and receiving his or her answer via the quick access of online mortgage options.