With the advent of online mortgage loans from a variety of companies taking much of the ‘human touch’ out of the process, rate and ease of use is one their major selling points!
Mortgage rate during a period of Federal Reserve tightening is certainly an important piece of the puzzle, particularly if a potential homebuyer or mortgage refinancers margin for the loan approval is narrow.
Unfortunately an 1/8% or 1/4% more in rate can sometimes spell the difference between an underwriter giving the thumbs-up or thumbs-down. But loan shopping can be tedious and, if the lowest rate is what’s driving a borrower to a source, they need to remember that the loan process takes time, sometimes money, the rate quoted may not be available in a specific financial circumstance and finally that there are certainly no guarantees of success.
If time is of the essence which it often is, a borrower should make every attempt to make sure that the first source they go to for a mortgage loan is the right source.
And while the right loan source is an important first step, it still offers no guarantee of success but will hopefully provide the potential borrower their best shot.
The person captaining the mortgage ship, known by names like the loan officer, mortgage broker and loan originator, can make a huge difference in the process. And if you get a referral to one who has done the job and done it well for someone you know and trust, so much the better!
These industry professionals know what can and cannot be accomplished, what should and should not be done in the clients best interests, that there is only one opportunity for a potential borrower to put their best foot forward, the different and best loan options to use in order to bring a loan application to ‘Yes” and, they also hopefully have the experience of dealing with an underwriter who in some circumstances may have the ability to use an outside of the box approach to a given loan.
While an online mortgage provider may take a process that can seem onerous and appear to streamline it, the same documentation will be required of the borrower as would be if they used the human touch instead. After all it’s the accumulation of the data by the consumer that can often be what slows down the works.
And, in reality, the mortgage rate offered through an off-line process need not be any higher than that through a machine-driven one!
Man vs. Machine
During any given day technology will be a part of our lives that may be small or may be large depending on the person and the lifestyle that they live.
This fact makes shopping for a mortgage through an online source very tempting, particularly as the consumer is bombarded by advertising that can be very effective.
And if you happen to be a stellar borrower with absolutely no issues in the financial corners of your life, online mortgage shopping may be a viable option.
But, for everyone else, take a look back at the highlighted paragraph above and then ask your trusted advisors for the name of one of two mortgage professionals who have done a great job for them.
And finally, if anyone needs the name(s) of a mortgage professionals that I would recommend, let me know.
Michael Haltman, President
Hallmark Abstract Service