When you’re in the market for a mortgage, it’s hard to know where to turn. Do you go with a traditional bank, or do you try something new and explore online mortgage lenders? There’s no one-size-fits-all answer, as each option has its own set of advantages and disadvantages. However, if convenience and cost are both important to you, an online mortgage lender might be the way to go.
Online mortgage lenders have been around for a few years now, but their popularity is still growing. In fact, some estimates suggest that online lenders could make up about 25% of the total lending industry by 2021. That’s because they offer several advantages that traditional banks don’t.
The first major advantage of using an online mortgage lender is convenience. When you use an online lender, the process is usually much quicker than it would be at a traditional bank. You can apply for a loan in just minutes without ever having to leave your home. Once your paperwork is submitted and approved, some lenders can even close on a loan in as little as seven days—significantly faster than the typical 30-day timeline associated with banks.
Another benefit of using an online mortgage lender is cost savings. Online lenders typically have much lower overhead costs than banks, which means they can pass those savings onto their customers in the form of lower interest rates and fees. In fact, some estimates suggest that consumers can save up to 0.5% on their interest rate by choosing an online lender over a traditional bank—which could amount to thousands of dollars saved over the life of your loan!
Finally, many online mortgage lenders offer helpful tools and resources that make it easier for borrowers to make smart financial decisions throughout the process. For example, many offer free calculators that allow users to quickly compare different loan options and see which one fits their budget best. They may also provide educational materials such as informative blog posts or videos that explain different aspects of home financing in plain language so consumers can make informed decisions about their loan without relying solely on jargon-filled conversations with bankers or brokers.
In conclusion, there are several benefits associated with using an online mortgage lender rather than a traditional bank or broker: convenience; cost savings; and helpful tools and resources designed to help borrowers make smart financial decisions throughout the process. If you’re looking for a quick, easy way to secure financing for your next home purchase or refinance project – without breaking the bank – consider giving an online mortgage lender a try!