Why You Should Get Your Mortgage Online
Say Goodbye to the Traditional Mortgage Broker
When it comes to getting a mortgage, many people have traditionally gone through a mortgage broker. This is often the case because brokers are familiar with the local market, have a range of options, and can provide advice and guidance on the process. However, there are now a number of online services that are making it easier to get a mortgage, and these are quickly becoming the preferred option for many.
Benefits of an Online Mortgage Broker
There are many benefits to getting a mortgage online:
A Faster Process
The process is much quicker and more streamlined. Properly done, with Frank Mortgage being the best example, an online mortgage brokerage expedites the data collection and communication processes that are necessary to get a mortgage. Online services often offer a much faster turnaround time than traditional brokers, meaning that you can get a mortgage in a fraction of the time.Save Money
Online services are often more cost-effective. They should be able to provide competitive rates and reduced fees, meaning that you can save money on your mortgage.Convenience
Another benefit of getting a mortgage online is that it is much more convenient. You do not have to leave your home, and you do not have to take time off work to meet with a broker during hours convenient for them. You can apply and manage the process any time of day, seven days a week. All you need to do is fill out an online form to get started. Additionally, you can do research and compare offers from different lenders in the comfort of your own home.More Mortgage Options Available
Online mortgage brokers often offer more options than traditional brokers. Online services offer a wide range of products, from fixed-rate to variable-rate mortgages and prime to non-prime mortgages, so you can find the right option for you. Additionally, they often provide access to a wider range of lenders, meaning you can see multiple alternatives and find the best deal for you.User Control and Autonomy
The most advanced online mortgage brokers grant autonomy to the user, allowing a mortgage borrower to have greater control over their mortgage process. This should be supplemented with expert advice and service but providing users more control over their financing decisions is one of the great future benefits of this kind of technology.Instant Feedback
The best online systems provide instant feedback. You should be able to find out what you can qualify for without talking to anyone. If you want to talk to an agent, even better, they can help you navigate the system. Either way, a modern online mortgage brokerage system uses algorithms that can instantly determine your eligibility for a mortgage.Transparency
Finally, online mortgage brokerages are often more transparent than traditional brokers. Online services are better able to provide detailed information about the different options and lending requirements, so you can make an informed decision. They also provide easily accessible tools and resources to help you understand the process and your needs so you can make the best decision for you.
Characteristics of the Best Online Mortgage Brokers
Not all online mortgage brokers are the same. Make sure you are using one that does the following:
Provides licensed agent/broker support to provide you with personalized assistance during the mortgage process;
Provides online educational tools and information like guides, blogs, and mortgage calculators;
Shows you all the mortgage options available to you, not just a select couple of options that may be influenced by their own preferences;
Explains all the risks and advantages of any mortgage products you are considering so you fully understand what is best for you;
Allows you to securely upload documents to a secure portal. Some still require you to email private and confidential documentation. Beware of this since email is not secure;
Provides an online start-to-finish process that allows you to control your own mortgage process. Even if you are like most people and want advice from a licensed mortgage agent, you should still be able to control your own mortgage process via an online service.
Things to Avoid
You should also beware that a few industry tricks persist that some online brokers cannot seem to shake. Sometimes when the developer of a new online service is a traditional market participant, they carry forward the bad habits of the past into the new technology. The best online mortgage brokers have been set up to transform the industry, moving the mortgage process away from some of these old undesirable practices:
All online mortgage brokers advertise low mortgage rates. That is fine but some promote these rates as though they are available to everyone. The hope is that you will see these ‘teaser’ rates and start a discussion with them. Once you start with them you are likely to continue with them – or so the broker believes. However, many of you cannot qualify for the lowest rates and often end up experiencing this bait-and-switch tactic. While every online mortgage broker will show you low rates, the best ones will have an application process that will quickly show you the best rates that you can qualify for, so you are not misled or wasting time;
Some online brokers promise fast pre-approvals that are not particularly useful. A pre-approval needs to be from a lender. A pre-approval from a broker carries little weight. It may work to get a realtor to work with you, but it really does not give you much. If it is not specifically from a lender than you have no idea if a lender will consider you for a mortgage. Also, a pre-approval without a rate hold is not worth much since it does not provide you with any protection should interest rates change during your search for a house. If you are offered a quick, online pre-approval, make sure that it comes directly from a reputable lender that provides a rate hold;
If they start pushing you to a particular product or lender right away, be cautious. A good online mortgage broker moves at your pace, evaluating your needs and presenting you with a variety of alternatives. Armed with this information you should be able to choose the mortgage that best suits you. This is part of the magic of an online system like Frank Mortgage – the influence of the broker is reduced, allowing you to make an informed decision without broker bias or sales pressure;
Some online brokers may favor showing you the deals that are either easier or more profitable for them to get done. If they are only willing to show you a couple of mortgage alternatives, ask them for more. Their online system should show you all the options you are eligible to qualify for.
Do not fall for these old industry tricks. Modern online mortgage brokers should be entirely focused on creating technology that improves the customer experience. This requires a commitment from them to move away from the old, traditional ways of doing business that are not customer friendly.
Work with an online broker that is committed to being frank with you. Be sure the mortgage broker will allow you to compare rates, terms, and fees. Do not be afraid to demand transparency, ask questions and do your research. Be sure to ask for all the details before signing any documents. Make sure you understand the terms and conditions of the loan, including the interest rate and any prepayment penalties. A reputable online mortgage broker will discuss the risks and advantages of any mortgage product you are considering. Also, inquire about the fees you will be charged, such as closing costs and any other fees associated with the mortgage. The best online mortgage brokers do not charge any fees. You need a mortgage broker that is committed to producing the best outcome for you and you alone and some of the new online mortgage brokers, like Frank Mortgage, are your best option today.
The Mortgage Industry is Moving Online
Getting a mortgage online is quickly becoming the preferred option for many people. It is faster, more secure, cost-effective, more convenient, and offers more options than traditional brokers. Additionally, it is more transparent and provides access to a wider range of lenders. If you are looking for a mortgage, it is worth considering getting one online.
Don’t be intimidated by the idea that this is new technology. It is a simple and easy online process. If you are not comfortable around the technology, then you can talk to a licensed agent that will drive the process for you. The Frank Mortgage process works for you regardless of your level of comfort with technology. Either way, Frank Mortgage will be honest and transparent with you. Frankly, getting a mortgage does not have to be difficult. Let us show you how.
If you want to be in charge of your own mortgage process and treated like your needs come first, then please contact us at www.frankmortgage.com or call us at 1-888-850-1337.
Don Scott
Don Scott is the founder of a challenger mortgage brokerage that is focused on improving access to mortgages. We can eliminate traditional biases and market restrictions through the use of technology to deliver a mortgage experience focused on the customer. Frankly, getting a mortgage doesn't have to be stressful.
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