Don't Be Afraid Of Getting A Mortgage Online.

Five-Step Plan for Securing an Online Home Loan

The process of obtaining a home loan has been significantly simplified by the internet. Here’s a straightforward five-step plan to help you navigate the online mortgage process effectively, regardless of your credit history or personal circumstances.

Step 1: Don’t Be Afraid to Shop Around

1. Overcome Initial Hesitations: If you’re worried about your credit history or personal situation, remember that you don’t need to delve into these details until you receive a loan offer. Just start by providing basic information in an online form.

2. Embrace Your Situation: Understand that credit problems are common and not a reflection of your character. Many lenders offer products for various credit situations, and you can find a loan that fits your needs.

3. Be Confident: Approach the process with confidence. Be honest and straightforward about your financial situation but don’t let past credit issues deter you.

Step 2: Get Informed About Current Rates

1. Check Current Rates: Use online resources to find the current interest rates for 30-year fixed mortgages.

2. Review Trends: Look at the 6-month trend graph to see if rates are rising, falling, or staying stable. This will help you understand whether current rates are high or low compared to recent trends.

3. Stay Updated: Regularly check the rates to stay informed. Knowing the going rate will help you assess whether the offers you receive are competitive.

Step 3: Obtain Multiple Offers

1. Request Preliminary Offers: Apply for several preliminary loan offers online. These offers will provide you with essential information such as terms, rates, and conditions.

2. Compare Offers: Analyse the offers you receive and compare them to each other and to current interest rates. Look out for differences in points, terms, and fees.

3. Use Comparison Tools: Take advantage of online services that gather offers from multiple lenders. These tools are typically free and offer a quick way to obtain several preliminary offers.

Step 4: Proceed with Caution

1. Protect Your Privacy: During the preliminary phase, avoid providing sensitive personal information like your social security number. Ensure the lender has a privacy policy in place.

2. Understand the Preliminary Nature: Preliminary offers are non-binding. You’re not committed to any offer until you’ve reviewed it thoroughly and discussed it with the lender.

3. Avoid Fees: These preliminary services should be free. Be wary of any lender asking for fees or charges at this stage.

Step 5: Understand and Evaluate Your Options

1. Examine Terms and Rates: Once you receive multiple offers, carefully review the terms and rates.

2. Communicate with Lenders: Speak with lenders over the phone to clarify any questions and gauge their responsiveness and professionalism.

3. Make an Informed Decision: Choose the loan that best meets your needs and offers favorable terms. Don’t rush—ensure you’re comfortable with your choice before proceeding.

By following this plan, you can effectively navigate the online mortgage process and secure a loan that fits your financial situation and goals.