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You're ready to buy your first home, but where do you start the
search? Well it would seem today the best place to start would
be in the online market; the online market offers some of the
most competitive interest rates are valuable and you can apply
right from the convenience and privacy of your home.
Does this mean that the online process is just 1,2,3.. and
you're ready to buy? No, this means the online community is one
of the better places to start. This article will take a look at
the good, the bad, and the useless. Not every web site is your
key to your new home; not every web site is what it claims to
be. Why don't we start with the tools that are available for the
novice buyer and then move into the online programs that are
valuable, and finish up with the online mortgage companies?
Many of the advertised web sites do offer really useful tools
for a novice buyer in order to prepare them and determine
eligibility levels. Tools such as the mortgage calculator, the
debt to income ratio calculator, and tools available that will
determine the mortgage products that are obtainable based on
your input of information are really helpful and do actually
provide the potential homebuyer with working information.
Normally, all of the major web sites will provide access to
these tools through the use of hyperlinks; some even offer to
calculate home value based on your location.
The most useful and perhaps the most often offered a tool for
the perspective homeowner is the application form to pre-qualify
and to have a representative contact you. There's nothing like
talking to another person, especially one that is a specialist
in the mortgage industry, in order for you to determine what you
actually will qualify for and what you might actually want to
buy.
What other options and tools are available on these web sites?
Another useful and often overlooked tool is the link that will
provide you with access to your credit file. More often than
not, a young person tries to pre-qualify for a mortgage product
and there is no existing credit history, there is no established
credit score, therefore there is no hope of obtaining a
mortgage. At least not without a cosigner. But if you're a
beginner, and you take the time to visit web sites you can gain
access to information before it's necessary to have established
plan. This in itself puts you one step ahead.
What would fall under the classification of "bad"? Here's the
only item that I can truly file as a bad side effect of and
online mortgage quest: your name and information is shared with
all other online lenders and at some point in time your phone
will ring and a telemarketer will asked to speak with you, in
order to sell you a mortgage. Now, a mortgage is not really
something that you impulse buy, therefore I believe this to be a
waste of time for you, the telemarketer, and the online mortgage
company.
What falls under the "useless" category: the web sites that
offer to find bidders to bid and compete, for your mortgage
business. First of all they don't gather enough information to
actually compete for anything; not what mortgage company is
willing to submit a bid for your business until they check your
credit file, are familiar with your credit score, and know
something about the property you're proposing to buy.
Now why would you even advertise like this? Well the answers
really simple these web sites that offer to recruit mortgage
companies that will be it for your business are telemarketers in
disguise. That quite obviously earn a commission for every lead
they provide for a mortgage company, and you are simply
providing information to be one of their leads. It's really a
simple way to search for and locate live leads, and it really
does save a lot of live telephone time. So there you are a
general overview of the online mortgage market, the good, the
bad, and the useless.
About the author:
Tony Robinson is a Real Estate Investor, Webmaster and
International Author. Visit http://www.ezy-mortgage.com/ for his
tips on mortgages.
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