The Federal Housing Administration (FHA) loan is often referred to as a first-time homebuyers' loan,…
Even as the world continues to deal with the COVID-19 pandemic, life goes on, and with it are the many responsibilities many of us cannot put on hold. One of which is securing a home for our families.
Whether you plan on buying a home or you need to refinance an existing loan, now, it’s just tons safer to apply for a mortgage over the internet. Safe at home, without having to brave the danger of viral transmission, you can go through the whole process of applying for a home loan on your laptop or your smartphone. When you think about it, it’s even cheaper! You can save on gas since you don’t have to bus yourself from place to place for appointments. You also won’t have to worry about where to park each time you have to get out of your vehicle.
Nowadays, Zoom is already a staple for communication. It can also be less stressful to talk to someone over a video call instead of an in-person meeting, especially when your application might be rejected. Today, you don’t have to brace yourself for the embarrassment if your mortgage doesn’t get approved. You can close the tab or your phone app and move on to your next option.
Can I trust an online mortgage lender?
With the many new names appearing in the mortgage industry, it can be hard to discern which lender would be the best and most trustworthy option for you.
You have to consider that despite the many conveniences web applications can afford us, there is the concern about privacy and data that goes for all internet companies that ask for our personal information.
Many online mortgage lenders can indeed be trusted with our data because they are obliged by the law to protect the information we hand over. But as is the case in several other industries, it’s usually better to go with companies that have made a name for themselves, have invested in technology, and do business with integrity.
In this article, we’re going to share with you a few of the most well-known online mortgage lenders you can trust so that you can shorten your list of options to try out. We hope that this offers some positive help to you, especially when it’s better to stay in to keep safe.
Recommended Online Mortgage Lenders
On their website, Ally boasts that they have “state-of-the-art technology to get you pre-approved in as little as 3 minutes“. That’s amazing!
Unfortunately, while you can easily apply for home loans through Ally anytime and anywhere, their loan options are currently limited to conventional loans. There are no FHA, VA, or USDA loans that can be applied for with this online mortgage lender.
On the plus side, usually for conventional loans, you must have at least 20% home equity before you can kiss private mortgage insurance goodbye. But with Ally, borrowers of jumbo loans only need to put down a 10% deposit to skip this added cost. (Do we hear a hooray?)
There’s also an offer for newbies to the whole mortgage responsibility that asks for only 3% down via FannieMae’s HomeReady loan. Sounds good to us!
Bank of America
It’s almost impossible to make an article about online lenders without mentioning one of the biggest banks in the country.
If you are already a customer, whether through a credit card or a deposit account, don’t miss the opportunity to get a quote online from Bank of America. They won’t charge you any origination fees if you have an existing account. They are also great for first-time homebuyers who are on the lookout for low-down payment schemes.
Just make sure that you have a credit score of at least 620, so you can take your pick of all the mortgage products this lender has to offer.
According to some of their informative material, Better has “your best interests at heart” because their consultants “don’t get paid a commission.”
One of the beneficial services that Better offers is the technology to look up ways for you to get discounts on your mortgage. There’s absolutely no added cost for this feature; that’s why thousands of customers love them for the savings they can enjoy.
The whole application process is digital that you might never have to pick up the phone to call anyone, although you technically can if you would prefer to speak to a human regarding your mortgage concern.
As long as you have a minimum credit score of 620, Better might be one of your best bets.
With a funded volume of at least $73 billion, the Guaranteed Rate is as legitimate as an online mortgage company can get. Although this company does operate online, they also have over 750 offices nationwide aside from their headquarters located in Chicago.
Guaranteed Rate is also first-time home buyer-friendly, so if you are hoping to apply for an FHA / VA loan online for the first time, your chances are good as long as you have a credit score of at least 600. Those applying for VA loans, in particular, will appreciate that they do not charge any lender fees.
With their easy online application procedure, you can even send and sign important documents over the web without worrying about security.
This online lender is one of those non-bank entities that have emerged since the 2008 Global Financial Crisis. Although they have a focus on mortgage loans, they do also offer non-mortgage options. This year, they entered the New York Stock Exchange, going under the “LDI” symbol.
LoanDepot has what they call their Mello Smartloan technology that allows potential borrowers to confirm their income, assets, and current debt digitally. With LoanDepot, preapproval time can get as short as 15 minutes, which is not even enough time for casually window-shopping real estate online!
If you’re an interested customer, though, take note that their loan application process still includes a phone call from one of their home loan officers, so keep your lines open and your documentation at the ready.
Quicken Loans is the biggest retail mortgage lender in America. And with the success of Rocket Mortgage since 2015, it’s safe to say that they’re one of the largest online lenders out there.
By July 31 this year, Quicken Loans will finally be exclusively called Rocket Mortgage, as, according to their CEO, “Rocket Mortgage has grown to be the industry leader and the measuring stick for all other lenders.”
Launched in 2015, Rocket Mortgage was a turning point in the mortgage industry with their ambitious claim of letting you know if you are approved for your mortgage in as fast as 8 minutes! Today, though it might take a bit more time than their original promise, Rocket Mortgage does operate fast, letting you know just how much you can be allowed to borrow in just a few minutes. Be warned, though, multiple inquiries and applications through this online mortgage lender can bring your credit score a few points lower. As much as possible, finalize the details you want to enter, like the rates and fees you prefer, to lessen the hits on your credit score.
If you’re looking for a lender with more mortgage options, this might be the right company for you. SunTrust offers a wide menu of mortgages to cater to all borrowers that might even take special attention to your particular profession.
They consistently rate among the best online mortgage lenders in the market, according to reviewers. Borrowers appreciate the transparency you can find even on their website, where you can easily check for their mortgage rates and fees.
If you are a medical professional, you might want to take advantage of their physician loan program that does not ask for private mortgage insurance no matter how much home equity you can afford.
If you also prefer to talk to a human, their mortgage application can also involve a phone call or a meeting with one of their loan officers.
A Tip Before You Go
At the end of the day, it’s really not about who services your mortgage. The best deal will still be what you can read in the fine print.
Remember that the best mortgage, according to your financial profile, will not particularly be the best one for your neighbor as well. Even if two people were borrowing the same loan amount, they would each have their own unique circumstances to give them advantages and disadvantages on their chosen mortgages.
If you choose anyone,e online mortgage lender,r from our list, this is not an assurance that the mortgage you are getting will be the best.
According to the Consumer Financial Protection Bureau, almost half of people who apply for mortgages sign with the first lender who makes an offer. To get the best products and services regardless of what you are shopping for, it is necessary to get as many offers as you can find. A little effort can really go a long way!
We recommend you take advantage of the technology we have these days. After all, you won’t have to leave your home as you apply with some of the best online mortgage lenders!