According to recent surveys, the Internet has been used for more than 50% of the general adult online population when it comes to shopping for the best mortgage rates. Of those people, 43% started their loan process online but eventually stopped the process before completing it for one reason or another.
When questioned why they didn't finish going through the entire process, most said it was because they didn't have all the information required to finish, they were uncomfortable with providing personal information online, or the process was too time consuming.
In addition, it was found that brokers took advantage of online borrowers more than they would in person. Overall, of the more than $110 billion in total online originations, more than $85 billion came directly from the wholesale broker channel.
This same study found that three out of four borrowers have gone to a lender's website to research loan options and rates, access marketing materials, submit an application, check the state of an application, or lock in a rate.
Although the Internet is still not the main channel for processing loans, it's estimated by analysts that within a year, the Internet will become the primary direction that loan transactions will take.
The overall online process, which is constantly being improved on, is still not as satisfactory as people would like. The consensus is that borrowers would like more information and better functionality. In addition, brokers want more speed and reliability. Together, the main complaints were that websites were to slow, feedback was inaccurate, pricing was incorrect, and service not up to par.
It's still important to remember that borrowers aren't getting the full benefits of technology that is available to lenders, simply because the lenders aren't up to speed.
A recent poll taken of 360 lenders showed that the number of lenders who have automated their loan origination and processing capabilities have actually doubled in the past 10 years. However, XML, a standard computer language allowing communication to occur between company's systems, is not being used at full capacity. It's estimated only 46% of lenders even know what XML is.
Another great option for online lending companies is the electronic signature. Imagine how easy it would be for not only the paperwork to be processed, but the actual signature portion as well, all online. The problem is its virtual on-existence. What that means is that even though the paperwork can be processed, signatures still have to be obtained manually.
As technology progresses, there are companies that are now providing the platforms for lending companies to process everything, from beginning to end, on the Internet. One such company, Bridge Span, Inc. has announced that it has the nation's first mortgage platform enabling lenders to process everyone online. This service will help reduce funding and production costs as well as completely automating the system, including electronic signature.
When research was conducted, it was discovered that 75% of borrowers are willing to go online to complete the entire mortgage loan process. In addition to great savings, the anticipation is that fewer errors will be made and the overall process will be smoother and less time consuming. Eliminating or greatly reducing errors alone is a huge benefit. There's nothing worse than getting all the way to a closing only to find its been delayed due to some glitch in the processing of data. Online mortgage loans will help streamline the loan process and provide a great service to borrowers and brokers alike.
Of all factors involved in securing an online loan, the majority of people surveyed stated that interest rate is the number one option when choosing a lender. Almost all were willing to work with lenders located in another geographical area if they could get the better rate. Surprisingly, less than half stated that service was important.
If you are considering using an online mortgage lender, just as with any loan, you need to research the options offered and do some comparisons between lenders. No matter what, you want to make a wise choice.
In addition to traditional loans, using an online lender might be a good option if your particular financial situation doesn't fit into standard loan offerings. The Internet will provide you with the opportunity to research unusual or unique loan packages.
Most states have strict licensing requirements so be sure to check the references of any online lender. You can always check the local Better Business Bureau in your area or go to www.bbb.org.
Be sure that you are visiting a reputable website. To learn as much as you can about the company, click on the "About Us" on the website and read all you can about the company -when they were established, if they're licensed, what their rates are, etc.
As with any lender, whether online or offline, most are honest organizations just trying to make a decent living. Unfortunately, there are bad companies, as with any industry, so make sure you do your homework before you lock into any loan.
When you're buying a home, you want to find the best interest rate possible. Why should you settle for an 8.0 interest rate if you can find a mortgage company that will loan you the same amount of money at 7% or lower? But, where do you find these companies, and how do you compare their rates?
First of all, you will need a computer and a way to get into the Internet. But, the Internet can be very overwhelming, especially if you're not familiar with search engines and keywords.
Before you go into the "Net" to find a lender, have a loan amount and an interest rate in mind. That will at least give you a starting point.
So, what is a search engine and what can it do for you? A search engine uses its proprietary software to travel through the Internet following seemingly impenetrable networks of links to grab and index Web Pages. Then it uses additional software to move the data about within one or more databases. Layered onto that is more software to enable visitors to easily retrieve information through the searchable database.
Although I have found that most search engines will reveal almost identical information, it won't hurt to browse each one separately. Today, some of the most popular search engines are: Yahoo!, AltaVista, Excite, Lycos, Dogpile, GoTo, WebCrawler, Snap, MSN, AskJeeves, Northern Light, and Google.
Now that you have a list of search engines to browse, you will need keywords to help you navigate through the web and find the information you're looking for. It's important that you be as specific as possible when using a keyword. For example, if you were to go to www.excite.com and type in "large screen computers" (without the quotation marks) you would get approximately 22,820,870 results! Use the quotation marks and you will instead get approximately 35 pages.
Much easier than trying to sort through over 22 million results!
If you go to www.excite.com and type in "mortgage rates", below is the result, and this is just on the first of 113 pages!
Real-Time Mortgage Rates Get updated rates from over 1,400 lenders covering 124 different loan programs. Monstermoving.com continually monitors the rates on our site to ensure accurate and honest quotes. http://www.monstermoving.com
LoanStream: Mortgage Rate Resources Refinance your mortgage, consolidate debt and more with LoanStream. We're direct mortgage lenders providing a variety of home loan products to help make the right choice an easy one. http://www.loanstream.com
Empire Mortgages - Free Online Quote Click here to fill out a very short online form and receive a free mortgage quote. We offer low rate mortgages even for people with credit problems. Offices nationwide. http://empireequity.com
LendingTree - Find a Low-Rate Mortgage Complete one simple form and receive up to four loan offers within hours at LendingTree.com. Take advantage of record low rates. When banks compete, you win. http://www.lendingtree.com
Mortgage Information at 100BestLenders100 best banks/lenders has information about home equity, line of credit, mortgage, refinance. Use our links and find a simple online application to results with multiple offers. http://100bestlenders.com
Current Mortgage Information and Today's Rates from HSH ... ... Order "A Homeowner's Guide to Mortgage Refinancing" Ever wonder What Moves Mortgage Rates? ... Does the Fed Funds rate affect mortgage rates? ... http://www.hsh.com/
Mortgage rates, CD rates, auto loans, credit cards, mortgages and ... Mortgage rates, CD rates, auto loan rates, credit card rates, objective information and in-depth articles on consumer bank products such as mortgages, credit ... http://www.bankrate.com
Mortgage Rates Comparison 45Yr Low Mortgage Rate & Calculator Major Banks Compete at Best Lenders http://100bestlenders.com
Shop hundreds of lenders See the low rates before you apply Free consumer resource since 1987. http://www.interest.com
Low Mortgage Rate Low mortgage rates. Complete one application and receive multiple offers from lenders. Over 1,000 lenders waiting for your request. http://afl.loanapp.com
Today's Average Mortgage Rates from HSHAssociates HSH Associates calculates national average mortgage rates on a daily basis, Tuesday through Friday. ... Today's Average Mortgage Rates. ... http://www.hsh.com/today.html
Mortgages, Mortgage Rates and Home Loans by Quicken Loans Americas Home Loan Experts, My Quicken Loans For Return Clients: Username: Password: GO. Great Rates at. Three easy ways to get your best rate quote. http://quickenloans.quicken.com/
Apply Online for Great Mortgage Rates Fill out a one-page form for your free mortgage quote. Three lenders will contact you within hours to compete for your business. Everything is fast and easy at Lending First. Nationwide. http://www.lendingfirst.net
3.25% Fixed Term Mortgage No Income Verification, Fast Close! PA, NJ, NY, DE, FL, CT, IN, MO, CO http://www.moneywarehouse.com/
USB - Home loans - New - Refinance USB Home Lending is an online mortgage service offering instant approvals on home loans, with low rates and fees, for your first house, refinancing or new construction. http://www.anewloan.com
Multiple Lenders Compete for your Loan Homeowners-Multiple lenders compete for your Refinance or Home Equity loan. Just fill out one brief, secure online form and lenders will contact you directly within hours. http://www.4loanoffers.com
Bankrate.com: Today's best mortgage rates Bank rate Mortgages: Mortgage rates, professional advice and calculators. Find the best mortgage loan rates and in-depth articles... http://www.bankrate.com/brm/rate/mtg_home.asp
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