The Internet has made all of our lives easier in one way or another. Whether you are purchasing a new washer and dryer or searching for directions or looking to purchase a new house, the Internet is full of useful information to assist you in your decision. However, for every piece of useful information online, there is an equal amount of useless or erroneous information.
I know many people who have turned to the Web, when shopping for a mortgage, sites like Lowermybills, Refinance.net, Lending Tree offer the ability to shop multiple companies quickly. Lending Tree, being the most known, has advertised for years, when banks compete you win. However, there are a few things you should know about these online companies before you provide them with your personal information.
Many of these online companies, Lending Tree being one of them, are actually mortgage lenders as well. Therefore, while you may think there are a few banks competing for your business, this may be not be the case.
On the other hand, you may find yourself on the other side of the spectrum and you may receive 15-20 calls from one submission. Online companies make their money by selling your inquiry to mortgage brokers and lenders, and some of these companies may sell your information to 15-20 companies to maximize their profits. What you thought was a great idea, now has turned in to a pain, with mortgage companies calling you every 15 minutes. If you have experienced this before, you know that mortgage companies are relentless when it comes to trying to contact you and that's because they spent good money to get your information.
Another problem I have with online companies, they don't require their lenders to go through any type of background investigation or provide certification of their experience or knowledge. The loan officers receiving your information may have very little knowledge of the industry or even worse they may be frauds. While most companies don't require you to input your social security number, some, like Lending Tree, do require you to enter your social security number.
So how you should shop for mortgages? Referrals are the best way to find a great mortgage company that will take care of you. Ask friends, family, neighbors who they used to purchase their house or refinance. If you are new to the area and don't know any one ask your Realtor, financial advisor, insurance agent who they used or who they would refer. I always suggest to shop with at least 3 lenders but not more than 6.
Also, I would suggest to use a local mortgage lender. There are a lot variables in the mortgage industry that are related to the local market and you are less likely to have problems if your lender is familiar with your market. We don't do any loans out of Colorado, because we know we won't be familiar with the local market and, therefore, not able to provide the service we expect of ourselves.
If you don't know any one that can provide you a good mortgage professional, your best bet is to visit the National Association of Mortgage Brokers website for local mortgage professionals, http://www.namb.org/.
Happy shopping!!!
Prosperity Financial
Lafayette, CO
Your Mortgage Manager
http://www.myprosperityfinancial.com/
http://www.colomortgages.com/
Purchase - Refinance - Cash-Out - Debt Consolidation - Home Equity - Great Rates
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