Federated Lending Corporation

Should I get a mortgage online?

When you start the process of searching for a home, one question you may have is should I get a mortgage online. While many of us complete financial transactions online today, we all know there are safety concerns. This is especially true if you are dealing with some of the sensitive information you will be required to submit for a mortgage application.

Applying for a Home Mortgage Online

In most cases, it is impossible to get a mortgage quote online without disclosing personal information including your social security number. One of the challenges with starting a home mortgage online is there is no certainty as to who will have access to your personal information; this could mean you could wind up being a victim of identity theft.

Lack of Personal Service

When you deal with a local lender, you know you can meet someone face-to-face, talk to one person on the phone about your application and its status and you also have some confidence the person you are talking to will keep you updated about documents you may need. When you are considering a home mortgage online, you have none of these assurances, you could be bounced around from person to person throughout the process.

Online and Hidden Mortgage Rates

There are many people who are asking themselves should I get a mortgage online but the problem is what you see may not be what you get. Because online mortgage companies depend on getting web traffic, they are likely to put their lowest rates out for everyone to see. However, what is hidden in the small print is what you must do to qualify for those low rates.

You may see a rate that is lower than your local mortgage company and think you are getting a great deal. The problem is when you get to the bottom line, the loan only applies if you have stellar credit, are putting down 30 percent or less on your purchase or you are paying extra for that low rate through points up front.

While it may seem like a good idea to get a mortgage online, you probably will do far better going to a lender you can meet with face-to-face to handle the mortgage process. Keep in mind, if you are dealing with someone online, you are going to still must provide documents like tax returns, bank statements and pay stubs. Do you really want to provide those documents to someone you have never met and probably never will?

If you are considering purchasing a home or refinancing your current mortgage, instead of working with an online lender, contact Federated Lending in Bucks County, PA. We are a local mortgage lender and we can help you through the application process. You will get personalized service working with one of our loan officers and you can feel confident your loan is being handled by a professional.