Online Mortgages: The Good, the Bad, and the Useless

You're ready to buy your first home, but where do you start the

search? Well it would seem today the best place to start would

be in the online market; the online market offers some of the

most competitive interest rates are valuable and you can apply

right from the convenience and privacy of your home.



Does this mean that the online process is just 1,2,3.. and

you're ready to buy? No, this means the online community is one

of the better places to start. This article will take a look at

the good, the bad, and the useless.



Not every web site is your

key to your new home; not every web site is what it claims to

be. Why don't we start with the tools that are available for the

novice buyer and then move into the online programs that are

valuable, and finish up with the online mortgage companies?



Many of the advertised web sites do offer really useful tools

for a novice buyer in order to prepare them and determine

eligibility levels. Tools such as the mortgage calculator, the

debt to income ratio calculator, and tools available that will

determine the mortgage products that are obtainable based on

your input of information are really helpful and do actually

provide the potential homebuyer with working information.



Normally, all of the major web sites will provide access to

these tools through the use of hyperlinks; some even offer to

calculate home value based on your location.



The most useful and perhaps the most often offered a tool for

the perspective homeowner is the application form to pre-qualify

and to have a representative contact you. There's nothing like

talking to another person, especially one that is a specialist

in the mortgage industry, in order for you to determine what you

actually will qualify for and what you might actually want to

buy.



What other options and tools are available on these web sites?

Another useful and often overlooked tool is the link that will

provide you with access to your credit file. More often than

not, a young person tries to pre-qualify for a mortgage product

and there is no existing credit history, there is no established

credit score, therefore there is no hope of obtaining a

mortgage. At least not without a cosigner. But if you're a

beginner, and you take the time to visit web sites you can gain

access to information before it's necessary to have established

plan.



This in itself puts you one step ahead.



What would fall under the classification of "bad"? Here's the

only item that I can truly file as a bad side effect of and

online mortgage quest: your name and information is shared with

all other online lenders and at some point in time your phone

will ring and a telemarketer will asked to speak with you, in

order to sell you a mortgage. Now, a mortgage is not really

something that you impulse buy, therefore I believe this to be a

waste of time for you, the telemarketer, and the online mortgage

company.



What falls under the "useless" category: the web sites that

offer to find bidders to bid and compete, for your mortgage

business. First of all they don't gather enough information to

actually compete for anything; not what mortgage company is

willing to submit a bid for your business until they check your

credit file, are familiar with your credit score, and know

something about the property you're proposing to buy.



Now why would you even advertise like this? Well the answers

really simple these web sites that offer to recruit mortgage

companies that will be it for your business are telemarketers in

disguise.



That quite obviously earn a commission for every lead

they provide for a mortgage company, and you are simply

providing information to be one of their leads. It's really a

simple way to search for and locate live leads, and it really

does save a lot of live telephone time. So there you are a

general overview of the online mortgage market, the good, the

bad, and the useless.