Mortgages 101: Are online lenders a reliable option for homebuyers?

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If you’re shopping for a home, you’re probably evaluating multiple mortgage lenders for the best deal, personalized service, and low interest rates. You may be looking for an online lender – or at least one with an online application process – for speed and convenience.

See: Chase Mortgage Review: Competitive Rates and a Generous Homebuyer Grant Program
Find: Mortgage purchase applications jump 8% and loan sizes hit record high as rates start to rise

But are online lenders as reputable as other mortgage brokers? Can you count on the same quality of service?

Rocket Mortgage, the online mortgage division of Quicken Loans, is considered one of the largest mortgage lenders in the United States, according to Time.com. The company issued more than one million loans in 2020. It has a below-average number of consumer complaints in the Consumer Protection Financial Bureau database.

Online-only lenders who offer digital mortgages, meaning the application, loan documentation and processing are all done online, which can be faster, easier and cheaper. A New York Federal Reserve report found that digital mortgages can be processed 20% faster than conventional loans.

Today, many traditional banks offer online mortgage applications. If you’re looking for a balance between in-person service and convenience, you might want to consider financial institutions such as JPMorgan Chase, ranked as one of GoBankingRates’ top banks. of 2022, or Navy Federal Credit Union, which boasts 24/7 customer service.

If you choose an online-only lender, you’ll want to make sure the company has customer service hours and availability in whatever method you prefer, whether that’s email, phone or chat.

See: Mortgage shopping? Beware of unwanted fees as CFPB launches review of practices of banks, lenders and fintech
Find out: who owns the house in a mortgage?

Compare rates carefully and shop around. Online lenders may advertise lower rates, but if you don’t qualify for those rates based on your credit score, employment status, or other factors, an in-person lender may be able to help you. get a better deal.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketer with interests in finance, e-commerce, technology, and real estate. His long list of publishing credits includes Bankrate, Lending Tree and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology and entertainment website. She lives in Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten and three lizards of different sizes and personalities – plus her two children and her husband. Find her on Twitter, @DawnAllcot.

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