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  • Applying for a online mortgage vs. in-person. What are the benefits or drawbacks?

    April 13, 2015 | Blog Mortgages
  • ONLINE MORTGAGE APPLICATION

    It is difficult to ignore the rapid development of the Internet and its many uses in our current generation. Almost everything is done online, from shopping to making payments and buying all we need even including groceries. Thus, it is no longer scary anymore to do anything online including applying for a mortgage.

    Applying for a mortgage online simplifies the busy workaholic or even the laid-back individual at home. Online seems to solve the convenience and ease in applying for a mortgage especially considering that banks or mortgage offices are closed between 5 pm-8 pm. For many who are unable to get home before 8 pm, they will have the opportunity and convenience to apply for a mortgage online.

    In fact, banks can take advantage of the online platform to simplify all the processes required in the online mortgage application. Though it is a new trend, it is feasible and not as bad as it sounds. For instance, we have a Pre-Approved section on our website that helps those find out if they qualify to buy a house. Some of these online mortgage applications are so easy to use, less time-consuming and is cheaper compared to applying in person. Applying online for a mortgage at home is also a way for people to multitask or for those that do not have enough time in the day. It is that simple and convenient.

    Additionally, applying comes with benefits like lower interest rates, low closing costs and also offer the most flexible payments which is not quite likely if applied for in a bank or with a mortgage broker.

    Another factor to consider is when you have a low credit score, at least lower than 700, your best bet is to apply online because they don’t take the stricter measures like the banks do.

    However, online mortgage applications are prone to fraud, scams and many possible illegal businesses that can risk the entire application. Besides, there is no interaction with a real person especially if you are applying during the weekend or holiday it may be impossible to get any customer service readily available.

    IN-PERSON MORTGAGE APPLICATION

    On the contrary, applying in person is more reliable and safer. You feel secure sharing your personal information, and it’s more professional. There is a sense of security and relationship capabilities that you don’t have online. You can ask questions over and over again if you don’t understand any terms.

    It is reliable to reach your mortgage broker if you want to; this creates a trusting relationship with the hopes that he or she will provide you with the best information and steer you away from making mistakes. A mortgage broker makes an extra effort to assist you and tries to understand all your financial needs in order to help make a favorable decision for your mortgage.

    Perhaps what to consider while applying for a mortgage in person especially in the New Jersey area is the interest rates. You either shop around for the interest rates or give that job to your mortgage broker only because this is where it can get expensive. The interest rates are higher when applying in person but can be worthwhile if the broker takes the extra time to shop around.

    Either way you choose, make sure you have done your research about mortgages and interest rates so that you know how to prepare if you choose to file online or in-person.