Wed. Jun 7th, 2023

online mortgage loan

How to Simplify an Online Mortgage Loan

Whether you’re buying your first home or refinancing your existing mortgage, an online mortgage loan can be a great option. But it’s important to choose a lender that fits your needs and works with you.

An online mortgage lender will allow you to apply for a loan and submit your financial documents digitally. This can save you time by reducing the number of paper copies that you need to provide.

Easy to Apply

If you’re buying a new home or refinancing your current one, it’s important to know how to get the best mortgage for your needs. It can be a confusing and complicated process, but there are steps you can take to simplify it as much as possible.

Online loan applications are a great way to save time and effort while ensuring that you’re getting the right mortgage for your situation. In fact, some lenders even offer pre-approval online.

Once you find a lender that suits your needs, you’ll need to complete an application and submit documents. This may require you to provide bank statements, pay stubs and tax returns. In addition, some lenders may request copies of your credit report and score.

It’s crucial to fully disclose all your financial information. Not disclosing credit problems or ignoring requested documents can delay the application process and make it harder to secure a mortgage loan.

You should also compare lenders before you apply for a mortgage loan to ensure you’re getting the best rates. A good rule of thumb is to shop around at least three lenders before submitting an application.

Then, be sure to ask for a loan estimate, which lenders must give you within three business days of receiving your application. This document will help you determine what your monthly mortgage payments would be and how much your closing costs would be, as well as other important details about the loan.

Whether you’re applying for a fixed rate or adjustable rate mortgage, make sure you understand all of the terms and conditions. Interest rates can change rapidly, so it’s important to make sure you’re locked in to the rates and terms that work for you.

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Before you apply, it’s also a good idea to consider other fees. Some lenders charge an application fee, origination fee and underwriting fees that can add up quickly. Thankfully, Ally Bank doesn’t assess these fees when you apply for a mortgage through their website.

Finally, remember that if you’re not a “prime” borrower with perfect credit and a stable income stream, you will likely need to meet with your lender in person to get the best rate and terms on your mortgage. This is especially true if you recently suffered a temporary drop in income, as your mortgage approval could be slowed down by lenders who will need to manually review your application.

Simpler to Navigate

The best part about an online mortgage is that you get to do it at your own pace. This is a win-win for the borrower and lender alike. And, a good mortgage broker will not only get you the best loan possible, but will also make the process fun and enjoyable. As a result, your home mortgage loan will be on the fast track to home ownership in no time at all. So, what are you waiting for?

Low Fees

One of the biggest benefits of working with an online lender is that you can often get lower fees. This is because many online mortgage lenders don’t have to cover the same overhead costs as brick-and-mortar banks, so they can pass their savings along to you. This can save you a lot of money in the long run, as a lower interest rate can mean thousands of dollars in savings.

Some lenders also offer low down payment options, which can be especially attractive to first-time homebuyers. However, before you apply for a loan, make sure you know what types of mortgages you qualify for. You’ll need to provide your credit score and income information, and you should consider whether you want to use a government-backed loan such as FHA financing or conventional funding.

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You’ll also want to compare lenders’ rates and fees. The best way to do this is to get rate quotes from several different lenders. Then, you can make an informed decision on which lender is best for you.

Another thing to look out for is origination fees. These fees help to cover the costs of originating a mortgage, including paying bankers, underwriters and scheduling appraisals. In some cases, you may not be able to avoid these fees, but it’s still important to compare them from each lender.

It’s also important to understand that some lenders don’t actually charge any fees at all. Some do, though, and these are referred to as “lender fees.” Other lenders charge extra fees, such as discount points, which can cost you a lot of money.

The best online mortgage lenders will be upfront with any additional fees you might be charged, so you can compare those before deciding which lender to work with. It’s also a good idea to ask about any other fees you might incur as part of the application process, such as loan processing and underwriting fees.

Another great perk for choosing an online mortgage lender is that they tend to offer a higher level of customer service than brick-and-mortar banks do. This means that you can be more confident in your lender’s abilities to get you the right loan, and it can make a huge difference on the outcome of your transaction.

Fast Closing

If you’re planning on purchasing a home, you want to make sure you get it closed as soon as possible. That’s because your mortgage interest rate is based on how quickly you can close on your loan, and the faster you close, the lower your rate will be.

If that’s your goal, consider applying for a mortgage preapproval or prequalification before you begin looking for a home. This will allow you to know your budget and give you a leg up when it comes time to make offers on homes.

Some lenders also offer online mortgage applications that let you fill out your loan paperwork and submit documents electronically. This can save you time and money by eliminating the need to print out and mail paper documents. However, be aware that many lenders require you to meet with a mortgage loan officer in person during the closing process.

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One of the best options for online mortgage loans is Guaranteed Rate, which allows you to apply online and securely upload loan documents. The lender offers a variety of loan types, including adjustable-rate mortgages (ARMs) and interest-only loans.

Its website is easy to navigate, and you can view all of your loan options at once. Its loan calculators are a good resource to use in deciding on a mortgage plan that’s right for you.

This online lender doesn’t charge any application or origination fees, and it accepts down payments as low as 3% with its HomeReady program. In addition, this lender offers up to $2,000 in closing cost credits through its Better Buying Guarantee.

Other benefits of using this lender include a digital closing option and no appraisal or recording fees. Ally also has a good reputation for customer service, and its average time to close is about 10 days faster than the industry average.

Another benefit of this lender is that it’s easy to earn closing cost discounts through its Rocket Rewards program. You can complete short tasks online, such as reading articles and watching videos, and then redeem your reward points for credit towards your closing costs.

Jeffrey Augers
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By Jeffrey Augers

Jeffrey Augers is a highly skilled and experienced financial analyst with over 12 years of experience in the finance industry. He has a proven track record of delivering exceptional financial insights and recommendations to clients, empowering them to make informed decisions and achieve their financial goals. Jeffrey holds a Bachelor's degree in Finance from the University of Michigan, and an MBA from the Wharton School of Business.