Not too long ago, most people were wary of using the Internet for any serious financial transactions. Over time, websites like Amazon and eBay made the concept of Internet transactions more palatable. Once major financial institutions like banks and investment firms offered the majority of their services online, the idea of making major financial transactions this way became far more accepted.
However, there are still many people who are hesitant to complete something as financially significant as a home loan over the Internet. In reality, there are several advantages to completing at least the first stages of the home loan process online. Read these five reasons why you shouldn't be afraid to use the Internet to get a home loan.
More Homeowners Are Doing It
If you do decide to use the Internet to get a home loan, you will most certainly not be alone. Recent reports indicate that more than half of homeowners are beginning their mortgage search on the Internet; a number that has increased by about 10 percent year-over-year. With such a large percentage of the mortgage market conducting at least the first steps of the process online, you can feel fairly confident that it is safe and secure.
Get the Latest Rates
One of the biggest problems in the mortgage market is that rate quotes advertised on television or other traditional media outlets are often outdated. In contrast, rate quotes on the Internet are usually the latest available. Among other reasons, this is typically because financial institutions offering home loans and refinancing have their rates updated automatically as they change. Better yet, you can easily compare the rates and terms that different companies are offering in real time.
It Won’t Hurt Your Credit
Many of those who are hesitant to use the Internet for credit-based transactions are concerned about the potential negative impact on their credit rating. For years, we were told that having your credit pulled too often would negatively impact credit and should be avoided. Presumably, this problem would be exacerbated by the multiple credit-pulls required to compare different home loan companies.
The reality is that having your credit pulled three or four times over the span of one week will have a negligible impact on your credit. The benefit is the valuable research you can conduct on different mortgage companies.
Protection from Fraud and Hackers
Although there have been stories about information being hacked by rogue groups or even the federal government, the reality is that the vast majority of Internet traffic is secure. You can further protect yourself by only entering personal financial information on a computer you own and only on websites of highly reputable companies.
Get a Better Deal
At the end of the day, the thing everyone looking for a home loan wants is a way to save money. Even a fraction of a percent off the interest rate can save you tens of thousands of dollars over the life of the loan. Thanks to the lower overhead associated with Internet-based lenders, the company can provide a better rate with lower fees to their customers.
Far from being something to fear, the Internet is actually a great place to turn to for researching mortgage companies extensively and to find the best deal for you and your family.