I shop online extensively. There are many online opportunities for shopping for real estate. Over 90% of my homebuying clients shop for homes online on my site, one of the national real estate sites, or a company real estate site like Crye-Leike’s. My listing clients expect to have their listings prominently posted on the web. My philosophy is that a well-informed consumer has a definite edge in the market place.
But when it comes to money, especially mortgage money, I find the internet offerings pretty confusing. Not many consumers understand ARMs, buydowns, or such seemingly straight-forward terms as 100% loan or interest only loan; not to mention the differences between mortgage brokers and direct endorsement lenders. The mortgage market is just as competitive as the real agent market. Look long enough, and you can find the deal you want – or at least one that looks like what you want.
Some problems I have seen with the on-line lenders are insufficient disclosure of terms, mis-estimation of closing costs, and changing of terms of the loan between contract and closing. Mortgage companies are required by law to provide you with a “Good Faith Estimate” of the costs of buying a home, based on your income, credit scores, etc. If it is not offered, ask for it. Demand it. It will help you compare the loan products you are shopping. It costs nothing to speak to a LOCAL lender – preferably a direct endorsement lender (Underwriters at their company decide whether you get a loan, as opposed to mortgage brokers who shop your loan outside their companies to investors). The lender will answer your questions face to face.
There is absolutely nothing worse in a real estate transaction that getting to the closing table and realizing the mortgage deal you thought was so great was not so great on paper.
If you are in the Memphis area, I would be happy to recommend some great mortgage folks, just give me a call or email me.
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What do you think? Leave your comments.