Home Loans FAQ
Questions and Answers:Finding a good home loan online is becoming more common. Because the task of searching, comparing and deciding on a home loan can seem overwhelming, we at InfoFAQ have found answers to some of the toughest questions about online home loans. Below are some important frequently asked questions with answers provided by different online lenders.ch can help take the stress out of planning, booking and enjoying your next vacation.
Frequently Asked Questions About Home Loans Online
If I get a quote for a home loan online, will the actual amount that I pay vary much from the quote?In most cases, the actual amount that you pay will be more that what you were quoted. This is because the industry is set up so that lenders can hide charges and tack on charges once you are committed to the deal and can’t turn back. The only thing you are really protected from is gross overcharges that result from a bad-faith quote.
How can I check out an online lender?One thing you can do is to check with your state government to see if the lender is licensed to sell mortgages in your state. Another thing is to search the web for complaints about your lender. To do this just search Google.com with the name of the lender and the word ‘complaint’ or ‘problem’.
Will I be able to close escrow as easily with a home loan that I buy online?In most cases you will be able to close escrow in a timely manner with an online lender, but as always take precautions by checking out the lender before you buy. If the lender is out of state or far away, this can lead to delays because the documents will have to be sent back and forth by mail or federal express. Check out the lender by asking for references from other customers and by checking them out with the better business bureau.
How should I compare prices on home loans online?The main principle in comparing prices on home loans is to compare equivalent offers. This means using the same information to generate the quotes. Use the same length of loan, fixed or variable, number of points and their cost, etc. Usually when you get quotes some of these will be different from company to company, making comparison difficult. You will need to understand all of the terminology used as well as how to convert points paid to differences in the monthly payment amount.
Are online home loan websites the actual loan provider?In many cases the online home loan companies will not be the lender itself. While some lenders have their own websites, many of the home loan websites actually just sell your lead to outside mortgage brokers who then solicit your business. You can determine if the website is a direct lender by reading their site and researching the company on google.com.
When shopping for a home loan online, can I take care of the whole process over the web?While you can get quotes and prepare for a loan online, ultimately you will need to speak with your loan agent over the phone and then have documents sent to you which you must complete and send back to them.
How can I tell a good online home loan website from the less scrupulous ones?The legitimate online home loan websites will provide most of what you need online, but they will also have a phone number posted. This is a sign of a larger company that uses the web as just one of their lending channels. Other home loan websites will not have a phone number, and these companies really just want to sell your information to other home loan agents.
Can I get the best rates on a home loan using the Internet?
The Internet is a powerful tool for comparing home loan prices and coverage. However, due to the complex nature of the product being sold, comparing is not always easy. Quotes may not mention things like mortgage insurance requirements, which raise your monthly payments. Other companies may make unrealistically low quotes to get you to sign up, only to add on extra fees once you are committed. This is why it is important to do some research on the web site and see how other of their users feel about that companies services.
Consumer Safety and Information
Home Mortgage - www.yourhome.ca.gov
A Guide to Mortgage Resources in California.
Debt - www.ftc.gov
If you or someone you know is in financial hot water, consider these options: realistic budgeting, credit counseling from a reputable organization, debt consolidation, or bankruptcy.
Mortgage Refinancing - www.federalreserve.gov
Home Loans - www.federalreserveconsumerhelp.gov
If you have a problem with a bank or other financial institution, contact the Federal Reserve for help.
HUD - www.hud.gov
Financing Manufactured (Mobile) Homes.
Visit our Credit Card Fraud section for useful information.