Internet mortgages are loans applied for and serviced through web-based lenders. Rates and fees tend to be lower, and the process is automated. Borrowers may save money due to lower interest rates. Other websites provide clues and referrals to lenders. Refinancing, new purchases, residences, and rental properties are eligible.
An internet mortgage is a loan that is applied for and serviced through a web-based lender. Instead of submitting an application to a loan officer or broker, the applicant works directly with the lender. The qualifications, documents and procedures are the same as with a traditional mortgage, but the rates and fees tend to be lower.
There are many Internet mortgage companies that have their own websites dedicated to receiving and processing quotes and applications. Most of a borrower’s questions and concerns are addressed in a non-personalized way via the company’s website. Applications, quotes and subscription approvals are automated. There is typically no fee or obligation required of the prospective borrower to fill out an application.
If a prospective borrower decides to take a mortgage loan over the Internet, an appraisal fee is required to secure the loan. As with a traditional mortgage, the lender will order an appraisal to be performed on the property through an outside vendor. The prospective borrower has the option of locking in the interest rate in effect at the time the loan is guaranteed or taking the risk of getting the interest rate in effect at the time of closing.
Most Internet mortgage applications are automatically approved by the lender’s computer systems. If there is a problem with the application, a lender representative will usually contact the prospective borrower to verify that the information is correct and to obtain any documentation that could affect the decision. Whether an applicant is approved automatically or manually, they are required to present proof of income to the lender.
Due to the fact that fees are unnecessary for mortgage brokers and loan officers, the interest rates and fees for an internet mortgage are usually slightly lower than for a traditional loan. Origin fees and points still apply, but a borrower may be able to save money over the life of the loan due to a lower interest rate. Loan funds are usually transferred directly from the lender to a closing agent, and the loan documents are delivered and signed at a title office or through an attorney.
Other websites provide Internet mortgage clues to prospective borrowers. They refer borrowers to lenders willing to offer direct loans. Some of these sites may allow prospective borrowers to compare rates, fees, and loan terms. Refinancing, new purchases, residences and rental properties are all eligible for an internet mortgage.
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