Mortgage Quote

How to Get a Mortgage Quote Online?

Getting your mortgage loan on the internet has many advantages and benefits, although, it is not a good choice for all homebuyers. Online mortgage loans are both quick and convenient. The application process can be completed in the privacy of your home, at your leisure.

Applying for a mortgage online takes much less time to receive a reply when you apply. You can receive and compare the rates of numerous lenders almost instantly. Online shoppers are able to receive estimates on closing or settlement costs at the same time they apply for the loan rates. When applying for a loan in person, lenders are not required to provide a “good faith estimate” until 72 hours after receiving the loan application. The amount of time you will save from not having to contact lenders by phone or email makes online mortgage loans very attractive to applicants.

Save Money by Applying Online

The process of completing an online mortgage loan application is less costly for the lender. When an application is filed online, the customer does not need to visit the lenders office or meet with an agent to fill out forms. When the cost of business is reduced, the lender is then able to give the customer a better rate. By applying online, customers are often given a discount on interest rates, loan origination fees, and closing costs. In general, customers who apply online tend to have more knowledge of the loan process and often have a good credit history. The less likely you are to be considered a risk, the more likely you are to be approved by the lender. There is also a great deal of competition among online lenders. In order to be successful, lenders must be able to offer rates that are competitive.

Applying Online is Safe

Many people are cautious about applying for an online mortgage loan because they fear their credit information may be stolen. However, your chances of becoming a victim of identity theft are just as great when you apply for a loan in person. The vast majority of online lenders use encrypted transmission to send your loan information. After you complete the application, the text is changed to a secure code, which makes it difficult for others to obtain your personal information.

What to COnsider When Looking For in a Mortgage Quote?

When shopping for a mortgage lender, it is absolutely imperative that you obtain more than one quote. You should also ensure that every lender provides you with a Good Faith Estimate (GFE) to substantiate each offer. When reviewing these quotes, here are five important factors to think about:

1. Fixed or Adjustable

If a rate seems very low compared to other offers, make sure that you are not getting an adjustable rate when you requested a fixed mortgage. Brokers will often try to bait you with a low, adjustable rate.

2. Cash to Close

Look closely at how much cash each lender is requiring you to bring to the closing table. Sometimes a slightly higher rate is fine if it means that you need les money to close.

3. Escrow

Look carefully to see if the quoted loan requires you to escrow your taxes and insurance. If so, make sure your lender estimated the reserves that you will need to pay in order to set up the escrow account.

4. Origination Fees

Generally, the top line on a GFE will show how many origination points you are paying the lender for obtaining the loan on your behalf. It will always be to your advantage to negotiate this amount. Remember, most loan officers are paid on commission so they would rather make a little less than nothing at all.

5. Complete GFE

Make sure all fees are disclosed that you will be required to pay, i.e. origination fees, lender fees, processing fees, taxes, title insurance, transfer tax, etc. Some brokers/lenders will attempt to leave off non-fixed costs like taxes in an attempt to make their loan look more attractive.

These thoughts should prepare you quite well when seeking out a fair and affordable mortgage loan.

New Mortgage Sites Give Quotes Without a Catch

For years, well-known mortgage sites have operated by collecting a borrower's contact information and selling it to four lenders who call with a quote. Of course, this can lead to unwanted calls, spam, and junk mail.

New mortgage sites are reversing that model by offering answers without requiring any personal information. This signals a new trend in the mortgage industry: Putting borrowers in control by giving quotes with complete anonymity. Borrowers are provided with answers and then decide if they want to contact a lender without the hassle of lenders calling them.

This trend to empower borrowers is being led by three sites, each with a different approach and focus:

Zillow purchase or refinance- Zillow recently launched its Mortgage Marketplace where borrowers and lenders come together in an open, anonymous, and free marketplace. Borrowers submit mortgage requests anonymously and then an unlimited number of mortgage lenders can respond to borrowers' private Zillow accounts by submitting mortgage quotes. Borrowers are anonymous to lenders.

Name, address, phone number or Social Security number is not required. Based on the information provided, mortgage quotes, from an unlimited number of lenders, will be sent to the private Mortgage Quotes section on Zillow. The borrower can then contact the lender, either by e-mail or phone, and ask more questions about the loan quote or apply for the loan.

LionSaves refinance debt consolidation - LionSaves is a HUD approved lender that uses FHA and Fannie Mae mortgage refinances to consolidate debt, for which the savings potential can be high. Designed for a borrower with a few debts to consolidate, it request information without requiring any contact info. The site performs a thorough and more personalized analysis to give a debt consolidation/mortgage quote based on real time interest rates while the borrower maintains their privacy.

If there isn't enough equity to payoff all debts, it prioritizes credit card payoffs to maximize monthly savings. Borrowers can play with "what-if" scenarios and view different loan options while they remain anonymous until they choose to apply for the loan with LionSaves.

Mortgage Marvel purchase or refinance- MortgageMarvel provides a connection portal to different lenders. It requests basic information, including the loan amount, property value and ZIP code, then returns a list of rates offered by specific lenders. Mortgage Marvel gives quotes in complete privacy.

It enables the borrower to get rough quotes quickly by entering only three pieces of non-private information, this requires a few assumptions, which are listed at the top of the results page. It displays up-to-date mortgage rate and fee quotes from multiple lenders in an easy-to-understand table to compare rates, fees, and disclosures. Borrowers can get a quick look at interest rates for the loan they are considering, and then click directly to a lender's site to complete a loan application.

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