Online Lending: Pros and Cons
Although I strongly advise using a Local Mortgage Broker, some buyers are interested in considering Online Lenders. Here are a few pros and cons.
Pros: Online lenders usually offer competitive interest rates. If your credit profile is good, a few hours on your PC can lead to multiple offers. Most online companies use traditional approval and funding. Info is easy to compare without sales double-talk. Borrowers can skip the middleman.
Cons: Online lenders face less accountability. Online lenders may not have earned their reputations. Online companies may not have the legal authority to make loans in your area. Internet suspicion may still be too big a deterrent for you.
Take the following precautions: A poorly designed site is a bad sign. If you can’t learn anything about the company, try another. Ask your Realtor for names of reputable online lenders.