There is a reason why online lenders like Quicken Loans have amassed millions of customers over the past few years. Actually, there are a number of reasons. Here are a few just for starters.
Accessibility
Anyone with a phone or home internet connection can apply for a house loan online. Wherever you are in the country, you can ask for a house loan, and get it at a competitive rate. To be considered for a mortgage by a bank, you will need to be an account holder with them. Then you will need a bank official to walk you through the application process. Online lenders strive to make their application procedure easy to follow so you can do it yourself from start to finish with minimal guidance. Better Mortgage has been feted for its intuitive online process.
Quick TAT
Getting approval for your mortgage application from conventional banks can prove to be like waiting for a miracle. Scrutiny on applications is tighter now more than ever in the wake of the recent financial crisis. You may have to wait for more than a month before you get a green light on your mortgage. Online lenders allow you to begin the process online if you’re interested in the product and are agreeable with the terms. Some, like Quicken Loans, promise to get your approval within a matter of minutes. Online mortgage providers will even allow you to complete the entire process online, giving a provision for you to upload all supporting documentation to their website securely.
Informed decision
You will find most, if not all, the information you need to decide on your loan on the lender’s website. Most of them have embedded a loan calculator on their webpages, which allows you to work out how much you will need to pay every month if you input the price of the house and your initial deposit. Even after you secure the mortgage, you can keep track of your repayment schedule without having to call or visit a branch.
Bad credit
A low credit score will quickly undo your application for a mortgage with JP Morgan Chase, Wells Fargo or any other traditional bank. After burning their fingers during the housing crisis, few of them are willing to take on the risk of FHA-backed house loans. This kind of loan was the low-hanging fruit for many first-time aspiring homeowners as well as those with lower-than-average credit ratings.
Browse through this independent review of online lenders if you intend to invest in a new pad soon.