The Internet has made the home buying process easier than ever. Not only can you search for homes and research cities online, but you can also apply for home loans online as well. The following steps show you how.
1. Research Several Mortgage Lenders
Available interest rates and loan terms vary widely among lenders so it pays to shop around. Start with banks and credit unions you are familiar with, but do not be afraid to research new options well. Not all major companies are good to work with and many smaller, less familiar companies might offer great personalized service you would not find at a large banking institution.
Be sure you compare lenders not only based on the rates and loan terms they can offer you, but also on their track record for customer service as well. Company reviews on the Better Business Bureau website and reviews found through simple internet searches can let you know if the company you are considering is reputable or risky.
2. Gather Your Financial Information
Once you are ready to begin filling out an online application, take a minute and gather all the financial information you will need to fill out the forms. This way, you will not have to stop several times mid-process to go track down a piece of paperwork you did not realize you would need. If you leave a form unfinished, you run the risk of your application timing out and you having to start the application entirely over from scratch.
Lenders typically want to know how much money you make and how much money you owe. They will likely want information from paycheck stubs and W-2’s to verify your income. They will also likely want copies of your bank account and investment statements to verify your savings. You may need paperwork to prove rental income or child support as well.
3. Fill Out Multiple Applications if Necessary.
When you are ready, go on the lender’s webpage and begin filling in the online application. Many websites will require you to create a user account, but the account should be free and should only take a couple minutes to create. Once you are logged in and viewing the application, simply fill in all the information accurately and take your time so you do not make mistakes.
If you have any reason to doubt whether you will be approved by a lender, you may want to go ahead and fill out a couple applications with different lenders. Filling out multiple applications within a narrow window of time, typically two weeks, will not hurt your credit the way filling out multiple applications over the course of a couple months would. Then, if one application is not approved, you will hopefully have a back-up.
4. Call if You Have Questions
If you have any questions while you are filling out your online application, do not hesitate to call the lender and ask. It is better to fill in the information correctly the first time, rather than to guess and be denied or be mistakenly approved and then later denied when you cannot back up your information. Any company that deserves your business will be more than happy to have someone thoroughly answer any questions and concerns you may have.
5. Accept a Loan Offer
The last step in the online loan application process is simply to review what loans you have been approved for and accept and the one with the most favorable rates. You are not locked into a contract until you have submitted and signed all the necessary paperwork at closing.