If you’ve been watching tv a bit over the past few months you may have noticed advertisements for the website rocketmortgage.com. They had a big super bowl advertisement that garnered them a lot of attention, both good and bad. Now that the internet is very much a part of most things in our lives it is no wonder that it wouldn’t leak into how we get loans.
It used to be that you could do some research on different lenders and rates on the internet, but the actual application and approval process was reserved for a phone call or even an in person visit. However, those days are in the past. Many lenders out there can use software to instantly give you the details of what a loan would look like for you.
There is a lot of suspicion when it comes to doing banking and things with sensitive information through the internet. There are also certainly real risks with just handing over your details and signing papers with any old website. However, there are also a number of very valid reasons to go the online route, even if it is just to look at your options before getting too serious about a home loan.
24/7 Processing Power
Going through the home loan process online for one thing means that companies can lower their costs. There doesn’t need to be a physical person looking at your financial information, instead a computer can look at the risk of many potential borrowers in much less time. This means that the company can process requests 24/7, more quickly and cost effectively. This means less overhead which could mean a better rate for you as a borrower.
That Human Touch
While having a human on the other end of a transaction involving what is most likely a great deal of money can be encouraging, in some ways it may actually work against you. All people have biases and a lender could give you a worse rate or miss some detail. Human error in the case of a mortgage can be very costly and so working with an online lender minimizes that risk by taking the person out of the equation.
Those with bad credit might also benefit from online lenders. With risks being assessed by a computer recent behavior and trends toward a less financially risky lifestyle might be more easily recognized and taken into account. Those with bad credit will have the same opportunities to apply for loans as anyone with great credit. Meaning that while those with bad credit might not get the same interest rates, they will be able to get loans faster if they are making inroads towards a more financially stable lifestyle.
Know Your Lender
Online mortgage lenders may make you uneasy at first if you aren’t too trusting of the security of the internet, but the thing is to look at the companies running the businesses. This big one rocket mortgage is backed by Quicken, a huge name in the lending business. Their BBB ratings are as high as they can get and you’ve most likely used Quicken products in the past. Before you write off all lenders of one kind or another then it’s best to look at the individual brokers.