You have received some good answers here, but I wanted to expand on it a little.
If you are talking about the SAME lender online vs in person, there is no difference.
Beware of some online lenders - Make sure you get a full list of their costs. When going with internet-only lenders, you can often get a good rate at the expense of a LOT more up front hidden costs. If closing costs are an issue for you, be very aware of this. Plus, if you have to get a hold of someone? It is a game of phone tag. "I'm sorry, I didn't get your message/email/fax/ what ever of the important document we have been waiting on."
Beware of Big Banks - Although I have heard that they are improving, there are horror stories of delayed closings, last minute document requests, and delays in funding. They often don't have the best interest rate anyway, as they can only provide their own rates.
Local lenders are usually the best. They don't have the huge overheads that big banks do, but they are local and you can deal with someone in person. Another thing that I look for is someone that has their underwriter IN HOUSE. I dealt with a lender one time who's underwriter made a rediculous request. Then, no one could get ahold of the underwriter even though the loan was supposed to close that Friday. The contract ended up falling through because of it.
LOCAL private lender - Not a big bank.
Underwriter IN HOUSE.
Get a list of all fees up front. If they won't give them to you, then they have something to hide.
Best of luck with your home purchase!
It's more than real estate. It's RAYL-Estate!
Brian Rayl, REALTORÂ®, e-PRO, SFR
Keller Williams Elite Park Cities
Here is a good blog about Mortgages.
best of luck yo you
America Home Key, Inc.
Today with new regulations and lender procedures it is not uncommon to have issues and problems that need to be resolved before you will get your mortgage. You want to deal with a direct lender who has the money (financial institution or mortgage banker) not a mortgage broker who is a middleman and cannot really guarantee the funds will be there when you need them.
The Internet is not where you should be going for your loan. As I tell my clients, if you go on the Internet you could be dealing with someone whose office is the menâ€™s room in a gas station in Fargo North Dakota. For a Mortgage you need to know who you are dealing with.
Also shop and compare APR (Annual Percentage Rate) rates not the simple mortgage interest rate (note rate) that can be used as a teaser by lenders. The mortgage interest rate is not what you will actually be paying as your true interest cost for the loan when comparing lenders, as it does not include fees.
Another advantage with an online lender is you normally will get your final closing paperwork emailed well in advance of closing. Some of the larger banks and mortgage brokers who do not actually lend money will not even have the docs for your review until you arrive at the closing table! It's ridiculously poor customer service in this day and age of technology.
When you work with someone face to face, you can rely on the information provided from that person and expect it to be the best possible data as they want to keep you within their business. When you submit on line, you become an number and will not benefit from the personal service of a local mortgage representative..
I am in tune to where the best deals are coming from and good reputable mortgage people. I was a fan of mortgage brokers for a while as they were getting better deals for my clients. I am now in sync with Bank of America, they have been best with rates and personal service. Yes, much better than local mortgage brokers I have been dealing with.
Mortgage Loan Officer
Bank of America
Tell him I said to give you a call.
Have a great day;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit Repair
Making home ownership more than a dream...
Retired Mortgage Banker
Unwavering Commitment to Serivce
keep track of all my closing statements and I know which local lenders over charge. Your Realtor
should know this too. There are HUGE differences in the loan fees. The question to ask the lender is "How much will my closing costs be for this loan". The rate and points are important, but the bottom line is all that
counts. For on line lenders, my clients who live their entire lives on line have had success with Quicken. Each lender's underwriter has different criteria they must plug in to qualify you for their ideal loan. These criteria can change often, and of course, follow Alma's suggestion of doing all your shopping within a tight
Good luck and congratulations on being soooo organized!
So just make sure to keep your shopping to about a 2 week time frame and you will not affect your FICO score. This is another fallacy that some brokers may tell you so you do not "shop" your rate and fees.
Good luck on your home purchase.
All the best,
Best to shop around for the best rate and fees. Also you have to make sure to quote on the same day because rates change daily. And do not let the total estimated closing cost figure sway you, only look at the "lender related fees" because these are the only costs your lender has control over. the other costs will generally be the same and some lenders overstate or understate these "estimates".
check out http://www.MtgProfessor.com it a great website to learn how to shop for the right mortgage.
All the best,
The Marie Souza team - Top Selling on Cape Cod
You said you were going to apply to a "major bank" for a mortgage loan. You should receive the same loan rate whether you apply in person or online. Obviously, you will be shopping for the best rate available and probably are comparing rates between major banks in your area.
As a Realtor, I would advise you to contact a loan officer in the bank of your choice in-person. The benefit to using a bank over a mortgage company is that the banks cost associated with generating that loan are usually lower. Also, a bank can do what is called in-house loians where most mortgage companies cannot.
No mention of credit score, or whether you have been employed with the same employer or related type job all will make a difference in your mortgage rate.
I'll give you my biased answer. Who you select really depends on what you expect in terms of customer service from your financing experience. I recommend going through an individual mortgage banker/broker as they will have access to many different loan products & lenders than any one Big Bank will ever have. Talking to a banker/broker can be like talking to 10-20 different lenders at once AND this will likely include the Big Bank you are already talking with trough their wholesale lending channel which you don't have access).
Banker/Broker are paid for production and thus HAVE to give better customer service than the big banks in order to survive. This means, they will answer your phone call at night or on the weekends if necessary (at least the good ones do).
Items you'll need: last 2 months Bank Statements, Last 2 years W-2s, Last 2 years Tax Returns (if self employed) to get you started. Lender will ask for additional items from there but that should offer enough info for your pre-approval.
Another item to consider, a banker/broker can get loans closed quicker than a Big Bank if time is of the essence for you as their companies are smaller and more nimble with Processing/Underwriting/Closing & Funding operations.
Find a great mortgage broker licensed in the state. Everything is done by either fax/email or (we use) dropbox.com
The broker is going to be much more competitive, be able to shop, will take better care of you, is individually licensed, background checked, etc. The bank loan officer is not!
In most cases it is best to reveiw your information in person and to explain the various options you would have as a potential homebuyer. Your initial application can be done verbially, through the internet or via fax, but in some cases you may want to be across from the person as he or she is reveiwing this information so there is no misunderstanding.
Bankrate.com is a good reference.