Online Mortgage Application

Every day, thousands of people search for their mortgage loans online. But, with so many websites to select from and mortgage loan advertisements everywhere, choosing the right one can be a bit daunting. A simple click of the mouse starts the process, but what happens next and is it safe?

It seems that identity theft is in the news almost every day. An online mortgage application contains all of the elements needed for identity theft to take place, when deciding which website to pick as your mortgage loan source, use careful consideration. Before entering crucial information about yourself, make sure you know who will have access to it. Applying on a website that promises to let multiple lenders compete for your loan is a sure way to share your information with untold numbers of people you will never be able to identify.

Before filling out information on an online mortgage application, take a short tour around the website and make sure to do the following:

• Look to see if the mortgage company you are getting ready to hire has a physical address listed. (Often, this information is found on a page called "Contact Us" or on the "Home" page)
• Look for a telephone number and call to speak to a real person
• Make sure you are comfortable with the loan consultant you will be working with on your online application
• Under no circumstances give out your Social Security Number in an online form.
• Protect information used in identity theft by only giving it out in person or via telephone
  

Once you have found a mortgage company that has an online presence, but also has a physical address, you may elect to fill out a short request for additional information. This type of online form asks some basic questions about your contact information and your loan needs. This form gives the loan consultant enough information to know if he or she has any loan programs that will be a fit for you. The loan consultant should contact you by phone or email to discuss your loan. When you speak with the loan consultant, be sure to let him or her know what your objectives are with this loan.

Do you want to:

• Purchase a new home?
• Lower your monthly payment?
• Obtain a better rate?
• Get rid of PMI?
• Convert your adjustable rate loan to a fixed rate?
  

Once you and the loan consultant have decided to proceed with your mortgage loan, you will be asked enough questions to fill out a long application and at this point your Social Security Number will be required to access your credit report. Your application will then be sent to an underwriter for consideration. The loan consultant will give you a good faith estimate, which is the best estimate of the loan costs, as well as provide you with a list of documents which will be required prior to a final approval. In most cases, an appraisal will be ordered by the lender, which is a third party placing a value on your home. 

Appraisals are based on:

• Square footage
• Recent sales of other homes in your neighborhood
• Quality of the home construction
• Your home’s condition, etc.
  
  

Based on the online mortgage application, your loan will be approved based on:

• Your credit report
• The appraised value
• Lender guidelines
  
  

The lender will order a title search and set a closing date. A title search is conducted to determine if there are any issues with the title, such as outstanding liens. Any liens which are found usually must be paid off prior to or at the closing. You should be able to contact your loan consultant at any time during the process. They are working for you and should make themselves available to answer any questions you may have. Do not hesitate to call them with questions or concerns.

Name: Craig Roll
Email: croll@firstequitymtg.com
Website: www.firstequitymtg.com

Craig Roll is an expert in residential and commercial mortgage financing. His company, First Equity, may be found on the web at http://www.firstequitymtg.com.

An interesting look at mortgage solicitation