Should I See My Bank or Go With an Online Lender?

When it comes time to purchase a home or maybe refinance your mortgage, it is hard to decide how to get started. Do you go to a bank? Do you go online? There are tons of resources online, but there is something comforting about talking to someone that we can physically see versus talking to a representative on the phone or online. When going through life changing events such as getting your first mortgage, our first inclination is to do some research. It is the most common to ask people close to you what their process was like so that you have confirmation that you are going about it the “right” way.

 

You Don’t Always Have To Listen To Your Parents

You might ask your parents or close friends for their advice, but just because they went about their processes in a certain way, it does not mean that you have to follow in their footsteps. If you don’t want to involve the opinions or your family or friends, you might even browse the internet to gather your own information, or get started on shopping for a mortgage right then and there! The internet has changed the world and it is often said that we can find anything on the internet nowadays (even love!), and now with technological advancements occurring on such a regular basis, the internet is now changing the way that people are buying homes.

 

Times Are Changing

The internet is a relatively new product if you really think about it. It was not until 1991 that the “World Wide Web” was introduced to the general public, which is less than 30 years ago! Since then, we have made huge strides, graduating from dial-tone internet to now having high speed internet on our phones and even on airplanes! Not only are we able to check email on our phones, but we can now inquire about refinancing homes and have someone personally deliver the information we need with a quick phone call after filling out a questionnaire that only takes 3 minutes out of our day. It was only a matter of time until the concept of having a virtual store front that is open 24 hours a day and 7 days a week, readily available to anyone who has internet, easily accessible with the tap of our fingers came to fruition. Thanks to this new product, every client’s schedule is prioritized and put first and the burden of finding the time to go to the bank is no longer an issue.

 

It Takes Less Effort

There are multiple sites that can assist you in your research and even better, there are some that will do all the research for you when you are looking to get a mortgage. With most banks having the usual business operating hours of 9 a.m. – 6 p.m., it is extremely difficult for someone who works a typical office job to go to the bank and ask whatever questions they may have. They would have to schedule their appointment during their lunch hour and they would have to be back in the office by the time the hour is finished, which does not leave them with enough time to really get the information needed to make such an important decision. Banks now have ATM machines operating 24 hours a day and online mobile check processing so that their clients can deposit their checks at their leisure and convenience, even if the physical branch of the bank is closed.

 

You Can “Window Shop” Without Leaving Your Seat

These lending sites that connect you with other lenders is the equivalent of mobile check deposits in the mortgage industry. Not only are these websites in operation 24 hours a day/7 days a week, but they will also take the information that you provided and match you with multiple lenders who want nothing more than to help you. By getting matched with multiple lenders, you have the ability to compare your different options and pick the one which works best for you. How much more convenient can it get? When it comes to shopping, the worst feeling, aside from your coveted item being sold out everywhere, is when someone who has the same item tells you that you overpaid for it. You initially feel upset at the retailer for marking up the price, but the truth is that you are upset at yourself because you failed to put in the little bit of extra effort to shop around and find it for the better price. This “shopping around” concept should be applied when you go shopping for your mortgage. You want to make sure that you are getting the best deal that you can instead of thinking that the first offer that is presented to you is the best option. If you’re looking to purchase a home, check out these different types of mortgages

 

It Is Way More Convenient

When exploring your options with different lenders, all of this can be done online whenever you feel like doing it. You can also speak with a specialist on the phone asking your questions in detail instead of having to rush to a bank during your lunch hour or after work and hoping that they won’t close before you get there. Instead of having to make multiple appointments and drive across town to the various banks to check out what they can offer you, you can have all your different options on your computer screen without even turning on your car ignition.

 

You Are Their Priority

Another great benefit of shopping for mortgages online is that these lenders are fully prepared for the inundation of online inquiries that they receive on a daily basis. At a physical bank location, there are only a handful of bankers available at each branch that are ready to assist you and even then, it is a possibility that not all of them are loan officers, which would make the accessibility even more dismal. Understandably so, there is a sense of comfort associated with talking to a physical person about such a delicate topic like your finances. It feels secure. When it comes down to what could possibly be the biggest purchase of your life, you want to make sure that you fully understand everything and that you don’t miss out on any important details. Accidentally getting the wrong product because you misheard something on the phone sounds like a nightmare that you would not wish upon your worst enemy.

 

The Customer Service Is Just As Good

Thankfully, these are concerns that have been heard and are being addressed. There are companies such as Quicken Loans who have been awarded a plethora of awards for the better part of the last decade in regards to their fantastic customer service and they have also won multiple awards for mortgage servicing. Even online, you can ask your lender any questions you may have regarding your mortgage. Even with these amazing benefits, there is still the lingering fear associated with providing your personal and private information to a website that also needs to be addressed. While this is a legitimate fear and concern, it is no different than doing it online versus giving it to your loan officer at a bank. When you give the loan officer your social security number, your banking statements, and your credit score in addition to the other documents that are required in order to obtain the loan, the loan officer will input your information into their internal database, which will most likely be online. The only significant difference is that you are physically watching them do it versus you uploading it yourself.

 

Online Security

Other online lenders will most likely have the same system with an equally safe security system via encryption, which is basically a virtual safe to house all of your personal information that will not be shared with anyone else. These online lending companies are fully aware how important all of your personal information is and how crucial it is to keep it safe, so they do their absolute best to ensure the safety of your identity because their well-being and reputation depend on it.

 

Online Can Be Better

While shopping for mortgages online is still a concept that is unfamiliar to many, it is undeniably growing. Rocket Mortgage by Quicken Loans is a product that lets users shop for their mortgages using their mobile device and it was soon discovered that a large percentage of their users were first time home-buyers versus homeowners that were in an existing mortgage looking to refinance into something different. People are now using their cell phones to make the biggest purchase of their lives, which is confirmation that what was once considered “normal” is changing at a rapid pace. The internet brought about a lot of change and with change there is usually doubt, but we cannot deny that it has overall changed our world for the better and it is thanks to the internet that we have another option on how to get a mortgage in addition to the classic bank visit. Going to the bank to get a mortgage has been a tried and true method for all these years and while it is still preferred by many, it is also completely fine to take the road less traveled so long as it works for you.