Real Estate NewsThe Best On-line Mortgage Centers
On-line mortgage centers have become one of the most successful phenomena"s on the Internet. For all practical purposes on-line loans are less than two years old, yet by the end of 1997, more than $482 million in loans were generated. Forrester Research predicts that the industry will reach $40.5 billion in 2001, and another research group, Tower Group, is even more aggressive in its estimates - $100 billion by the year 2001.
Virtually all lenders today have a browser-based software that allows them to set tons of perimeters for the borrowers they would like to have. They can pre-qualify with the filters they have, cutting down the time it takes to qualify a borrower in split seconds.
Currently, all the speed is in loan application, as far as the consumer is concerned. Where things slow down is in the loan processing when other service providers such as appraisers, title companies, surveyors, and attorneys get involved.
Speedy loan searches, pre-approvals, application and loan approval are the tools you need to position yourself as a serious buyer when it comes time to purchase a home. In many of today"s seller"s markets, you will need every edge you can get to find and purchase a home before the next buyer.
The criteria for the best loan centers are many, but the best ones include ease of use, loan comparison features, and customer service after the approval. Multiple lender sites must offer at least ten lenders in order to be able to offer a wide range of loan products. With a variety of lenders, the chances of finding the right loan to meet your needs is increased. For the purposes of this article, only sites whose primary business is loans are included.
Most of the sites include calculators which help the borrower determine which is the right type of loan that is best for you as an individual. The calculators can be based on the borrower"s income, tax bracket, and time until they plan to move, risk tolerance for interest rate movements, how long they plan to be in the home, the amount they want to put down, and many more factors.
E-Loan - http://www.eloan.com
E-Loan positions itself as a consumer advocate by providing customer service from loan origination to closing. E-Loan boasts over 240 employees, 200 of which are customer service people such as underwriters, processors, or customer service representatives. The site features over 60 lenders and 50,000 loan products that can be accessed in seconds, at a savings of up to 70 percent in loan origination fees. Loans can be compared with a click of the mouse.
E-Loan"s star feature is E-Track, a service that updates a borrower"s file every hour so that a borrower can track his/her mortgage through the loan process. E-Track also gives estimates of closing costs before on-line application. After application, there is a more detailed and specific closing costs estimator. Other features include e-mailed interest rate alerts and consumer information.
Lending Tree - http://www.lendingtree.com
Featuring over 30 lenders and a competitive lender bid business model, Lending Tree puts the shoe on the other foot. Instead of the borrower occupying the supplicant position, the lenders compete for the borrower"s loan on-line with side-by-side bids of up to four at a time. This saves the borrower the need to apply with multiple lenders.
Lending Tree made news in early 1999 with its announcement of a strategic partnership with Priceline.com, taking loans to the virtual marketplace of the auction model. Borrowers submit their own interest rate and loan terms either to pre-qualify for a loan or to select a loan for a home they have already contracted to buy.
Once a loan has been selected, the borrower places a "good faith" deposit with the lender which can be deducted from the loan costs or returned if the loan does not go through. LendingTree also has a feature that will enable borrowers to contact the lenders while they are displayed together and let them know what they will have to change to make the loan offer acceptable.
HomeShark - http://www.homeshark.com
HomeShark was the first mortgage site to combine home searches with an on-line loan center - the first one-stop shop. Offering over 25 national and regional lenders, HomeShark is a cut-to-the-chase kind of site. It was also the first site to debut an enhanced city-specific closing costs estimator putting the distance even further between on-line loan origination and the traditional broker.
By offering wholesale pricing, a discounted brokerage fee (.5%) and a flat processing fee of $400, HomeShark promises substantial savings to borrowers over traditional brokerage services. The site also features in-house loan specialists who are available to provide additional assistance. The loan specialists interact with the customer via email and/or phone, depending on the customer"s preference, and take the
customer through the process. The loan specialists will also work with the Realtor throughout the transaction.
QuickenMortgage - http://www.quickenmortgage.com
The first multi-lender to be licensed in all fifty states and representing over 17 name-brand lenders, QuickenMortgage offers the ability to comparison shop the nation"s leading lenders, pre-qualify for a loan, see instant loan comparisons with real-time quotes, and get personalized responses within minutes through its interactive tools. An instant and printable pre-qualification letter empowers the borrower in searching homes and working with agents and sellers. Rates can be instantly locked in on-line.
Quicken also offers help for those whose credit has a smear. Help and information from four subprime lenders are available at Quicken"s Mortgage Credit Center.
EDITOR"S Note: Although the sites mentioned above are ranked in order of number of lenders, it should be noted that the lenders in many cases are regional as well as national and that number of lenders is not necessarily the best or only indicator of quality.