How to Get a Mortgage Online

These days you don't have to go down to the bank or broker to find a home loan. Dozens of online mortgage companies will help you get a loan over the Internet.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Online Mortgage/finance Services

1. Search the Internet for an online mortgage company. There are several types of lending companies: direct lenders who only fund their own loans; referral services that only refer you to the best company to fit your loan needs; brokers that search out the best deal and process your application; and mortgage auction sites that solicit bids from lenders based on your profile.
2. Identify your needs. Do you want to make a purchase or refinance? Is this a personal residence or an investment/vacation property?
3. Know the approximate loan amount and property value. If you don't know how much mortgage you can qualify for, most Web sites have calculators that will help with that process.
4. Answer questions online regarding your needs. Know how much you have available for a down payment and closing costs.
5. Print out a list of mortgage interest rates and loan points. Make sure you're comparing the same type of mortgage when you evaluate your options.
6. Begin the application process online by filling out its application once you have selected a company.

Tips & Warnings

• Some Web sites will recommend a loan program to fit your specific needs.
• Fixed-rate, adjustable-rate and combo loans (loans that are fixed for a period of time and then adjust) are available as are low or zero-percent-down and no-documentation loans.
• Some Web sites offer tracking services to track your progress though the application process.
• If you are concerned about giving out your personal information online, make sure the site is a secured site. Before prompting you for personal information, it should give you a warning.
• Once you apply online, you will still have to provide documentation by mail or fax.
• Some referral services and brokers charge additional fees that may or may not be refunded at close of escrow.
• Read estimated closing costs closely. Some programs have bugs that incorrectly identify who pays certain closing costs such as title insurance (which varies by state and county).
• You never know if you're dealing with a large company or a mom-and-pop operation.