SterlingResidential.com | Buying & Selling Residential Properties in Texas | Houses for Rent Houston Area | Humble Atascocita Kingwood & Spring Texas Realtors | Sterling Residential®, Realtors® | Real Estate Broker: What You Should Know About Online Mortgage Lenders

Prospective home buyers with good credit, ample cash, and no unusual contingencies may find that the online mortgage lender can offer savings and convenience. But, if you have special considerations, marginal qualifications, or you’re in a competitive market with multiple or back-up offers, consider a local lender first, or at least as a back up. While the number of online mortgage shoppers has increased, the number of online loans closed is much smaller, with accountability, communication and processing delays major concerns.

Borrowers shouldn’t shop only for the lowest competitive interest rate, but should consider the level of service and communication they’ll receive throughout the process. Get your questions answered, compare similar loan programs, and move on if you’re not satified with the lender’s responsiveness.

When shopping online, don’t answer spam, email promotions, faxes, or other non-solicited lender promotions. Most of these come-ons offer terms that are too good to be true. It’s easy to get caught up in the advertised rates and fees, but these are typically the best rates offered to the best qualified applicants — if they’re offered at all.

Some websites are under scrutiny for the bait and switch tactics of their advertised lenders. As reported by the Wall Street Journal, one popular online website, Bankrate.com, is being sued because promoted rates were not honored by some participating lenders:

As a borrower, you are in control of the process. Educating yourself and shopping around is your best strategy for saving money, and there are many published resources to help buyers sort through the mortgage lending process.

Mortgage websites are typically either direct lenders, advertising their own products and services, or they may be ‘referral’ or ‘aggregator’ sites that promote many competing lenders, like Lending Tree . When using aggregator web sites, it’s important to read the fine print. Many of these sites receive advertising or referral fees for your personal information.