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Refinancing Home Mortgage
In: Mortgage Lending
23 Apr 2010What are the disadvantages of using an internet mortgage company vs a regular brick and mortar company?
This is about mortgage information questions.
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8 Responses to Are there disadvantages to using an internet mortgage company, i. e. Lending Tree?
Ted
April 23rd, 2010 at 5:43 pm
If you drive at night without headlights on, you don’t know if you are safe until you reach to destination! Same applies here.
You don’t know whom you are dealing with. In my experience half the time both place you get similar deal. You doesn’t know who’s getting your information then why to take risk?
http://www.bankrate.com where you can find list of companies and average rate in your area. It does almost the same thing as lending tree but you are not providing personal information up front!
Barbara R
April 23rd, 2010 at 5:49 pm
Since they all work with the same investors, have the same interest rates, I would say credibility…service…working with a real person…eye-to-eye contact…local closing at a local title company…those are some of the advantages. You WON’T get a “better deal” with an internet company and if problems arise, you WON’T get any answers to your calls.
Just take the time to walk into the brick and mortar and shake hands with somebody. You won’t be sorry.
ejwapner
April 23rd, 2010 at 6:09 pm
I know nothing about Lending Tree but, I got my mortgage through ING direct.
I applied for it through their website and make all of my payment there.
The application process was easy and the closing cost low, lowest that I ever paid and I have had about 6 mortgages.
The best part about it for me is that I can make additional principal payment any time I want, with other mortgages I’ve had, that opportunity came only one a month when I paid the bill, by then I’d found way to many other things to spend the money on.
Having that option has allowed me to pay $36,000 on the principal of my mortgage in less than two years, something I’m sure I would not have done without the ability to make payments every week if thats what I can afford to do, and I do.
hunter2
April 23rd, 2010 at 7:07 pm
If you must get an online mortgage at least go to the best one.
http://www.eloan.com
They have made 3 loans for me and one for my sister. They are very responsive, fair, low rates AND LOW overall fees.
I will never get another RE loan anywhere else.
J g
April 23rd, 2010 at 7:39 pm
There is a big misconception that you can save money by going online and cutting out hte middle man the loan origiantor. The truth is that the best way to get the loan is by going to more then one originator . they get wholesale rates. Plus you have someone face to face and if any problems arise they can take care of it Seems like some other people have also stated and are well informed that you do get to close at a local title compnay. with such a big investment why risk it ?
ga_rei_guy
April 23rd, 2010 at 7:45 pm
It is true that the deal will be about the same. However, using a local mortgage company will usually help in getting the deal done if there is any issue whereas the online companies treat you just as another number.
Talk to friends, ask for referrals, tell that person that you were referred by “XXXX”, and I think several things will happen. One is that they will explain the process to you, hold your hand if necessary throughout the process and when something comes up, will usually try to handle/negotiate it themselves. An online company will throw the ball back to you and tell you that you need to resolve this or that.
Oh yeah, one other thing, you can better negotiate some of the closing costs with a local company. Just because they say it is going to be 1 point origination fees doesn’t mean that is set in stone. If you have reasonable credit, ask them to reduce that by 1/4 of a point. You will save money and they should still be happy.
Hope that helps.
Lee P
April 23rd, 2010 at 8:30 pm
The first negative thing about using LT is you will have no less than 4 hits on your credit report and numerous inquiries on your credit is not good especially if you change your mind and go somewhere else.
Go see someone locally and create a network of professionals in your area. Knowing people and networking will help you in the long run over time in your life.
If you are a professional then ask for the same from them. The trust you build will pay off I promise.
deborah_bacom
April 23rd, 2010 at 9:29 pm
To me the biggest disadvantage is not having a real live person with you at your real estate closing. If you are new to real estate financing and are likely to have lots of questions at the closing table this could be a draw back. Even for the experienced investor it’s nice to have a real relationship with your lender. If you are comfortable with financial terms and the closing process, there are good on-line lenders out there such as eloan.com. Either way you go, keep in touch with your rep and don’t hesitate to ask questions along the way. You should know the cost of the loan and other terms (pre-payment penalties for example) before you get to the closing table.