The Pros and Cons of Online Lenders

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Real Estate

The Pros and Cons on Online Lending

If you're shopping for a mortgage, you may already have thought about using an online lender. Reputable online like lenders like Quicken Loans can be an excellent option. Before you decide on whether or not to work with an online lender, let's consider some pros and cons.

Benefits of working with an online lender:

•  Interest rates and generally competitive
•  With a good credit score, you can spend a few hours submitting multiple applications and have offers within hours.
•  Most online lenders use traditional approval and funding.
•  It can be easier to compare different loan offers side-by-side.
•  Borrowers can skip the middleman.

The drawbacks of working with an online lender could include:

•  Online lenders may not have the legal authority to make loans in your area.
•  You likely won't receive the same level of personal service.
•  Online lenders often face less accountability when contractual dates are missed.
•  Internet suspicion (fraud) may still be too big of a deterrent for many buyers.

Occasionally, my clients apply for a loan with an online lender first, to learn what they qualify for in terms of loan rates and loan amounts, and then proceed with the loan through a traditional lender.  I'm happy to help you explore your options, provide recommendations for online and traditional lenders, and work with you to determine the best option for you. Whether you're in Almaden, Cambrian, Willow Glen or beyond, I'm never more than a click or call away!

Lucinda Layton, Realtor®