They say that buying a home is one of the most stressful times of your life, and getting your home loan is one of the reasons why. Unless you have the cash on hand to buy a home, which almost no one does, then you need a home loan. There are tons of things that can go wrong when you’re getting a loan, you could fill out the paperwork wrong, get a bad mortgage rate, or even be denied. That’s why a lot of people are turning towards online companies that specialize in mortgages, rather than a bank that serves multiple roles, and there are several reasons why. Here are just a few of those reasons:
It’s More Convenient
Most mortgage companies let you apply online, which saves you a ton of time and energy when applying for your loan. There’s no need to go into a bank, only to have their loan originators try to sell you on more than you need. Instead, you can choose what you want and go forward with it.
Furthermore, when you work on a mortgage application online you have more access to tools and research that you wouldn’t otherwise have. Do you need a loan calculator? Do you have a quick question that doesn’t seem worth bothering a mortgage broker, but needs to be answered anyway? By applying for your mortgage online you have access to all this information and more.
You Can Get a Better Mortgage Rate
For most people, whether or not they can afford their home comes back to the mortgage rate that they get. If someone’s rate is too high, usually due to poor credit, then a person usually wouldn’t be able to afford their monthly payment. If you can’t afford the monthly payment, you can’t take out the home loan. This can be devastating to people who thought they had found their dream home, only to be denied at the last moment by the bank. Mortgage companies often offer better rates than banks, however, and when you go online to find a home loan it’s easier to see all the different options available to you. This means that you get the best possible rate and are going to be able to move into your dream home sooner.
The Process is Quicker
When you apply for a loan online, the process tends to be quicker than applying in person, because the process is more streamlined. This is from start to finish as if you go to one in person mortgage lender and they tell you their rates will be more than you can afford, you then have to physically go to a new lender. However, if this happens online you don’t need to even stand up. You just search for a new option. Add in that the actual application process is quicker and it’s easy to see why applying for loans online is increasing in popularity. By being a more streamlined process, it lessens some of the stress that comes with trying to get a home loan.
You Don’t Lose Expert Advice
One of the reasons people still prefer to apply for mortgages in person is that they get to meet with someone in person to ask questions and get help from the process from. However, when you apply for a mortgage online, you don’t lose that expert advice from actual mortgage lenders and consultants. This means that you’ll still get that personal touch and will be able to ask any question you need to, particularly ones that may be difficult to research or don’t have a clear answer online. This relationship won’t be in person, rather it will be over the phone, but the relationship will still exist and that’s what’s most important.
The mortgage process can be complicated and anxiety-inducing. However, without a home loan, you won’t be able to buy a house. It’s vital to get the best loan possible, as 26% of homebuyers say that paying down debt is the biggest reason they struggle to afford their first home. So, it’s worth going online and checking to make sure you’re finding the best option for you.