Can I Get Preapproved for a Home Loan Over the Internet?
Virtually all mortgage companies allow online mortgage applications. Some lenders work exclusively over the Internet and only offer online services. Others provide several different convenience options for their borrowers including online, telephone and in-person application and approvals. Working with an online lender requires the borrower know how to scan and email documents or have access to a fax machine. Fortunately, working with online lenders allows borrowers a convenient way to shop and compare mortgage rates.
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Applying Online
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Before a lender provides a preapproval letter, the borrower must apply for the mortgage. Borrowers should ensure the online application is on a secured website. The mortgage application requires the borrower disclose many personal financial details. The borrower provides her full name, date of birth, Social Security number and address. It also requires disclosure of employment history, income amounts, bank institution and account numbers. Identity thieves like to use all of this information to open credit cards and other loans in other people's names or drain bank accounts.
Loan Officer
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Even online mortgage applications require the borrower work with a loan officer. Mortgage lending still requires people to gather information and review a loan application. It's not as easy as obtaining a credit card or an auto loan online. The loan officer communicates using email and calling on the phone. The loan officer ensures the file contains complete copies of your application and supporting documentation. He works with the underwriting department as it reviews and approves the loan application.
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Preapproval
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Most lenders provide mortgage preapprovals for borrowers wishing to purchase a home, but have not yet found a home. The borrower should notify the loan officer that he is still shopping for a home. The loan officer collects the borrower's pay stubs and bank statements. She also requests a credit report and submits the loan for a preapproval. The preapproval will be subject to the borrower finding an acceptable property with a purchase price and loan amount at or under the preapproved loan requirements. Once the borrower finds the right property, the real estate agent or the borrower emails the contract to the loan officer, who then forwards it to the lender for approval.
Closing
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Since Internet lenders may not have an office in the borrower's town, they email the closing documents to a title company or title attorney's office for closing. It's unlikely anyone from the actual lender attends the closing. The lender wires the funds for the closing into the title company's account that then provides checks to all of the required parties. It's very possible for a borrower to apply for, receive approval and close a loan without ever actually meeting anyone from the lender's company.
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