Online Mortgage Process
Should I get my home loan from Quicken Loans Rocket Mortgage
In the society that we live in, fast and seamless seems the way to go about most things. Some questions that come up at Mantle Realty are: Can I use an online lender?
What are the benefits of using an online lender, or should I use a local bank? Are all pre-approvals the same? What is the difference between pre-qualified and pre-approved?
Quick fast Mortgage Application Process online?
Yes, you can get an online mortgage pre-approval almost instantly. Credit Score, income verification, credit history, and debt to income ratio are not reviewed. This does stop the hassle of talking to your banker, filling out an application with more questions and financial documents needed.
At the same time, the reward can be getting a loan pre-approval instantly. The drawback is the quality of the application.
Online mortgage lenders ask basic questions to get their application in the system in hopes that the information you provided is correct. A great example is Rocket Mortgage’s question on what’s your household income? Their questionnaire doesn’t ask if it’s pre-tax, cash, commission, or salary. All of these income questions matter when it comes to receiving the best interest rates for your home loan.
Online home loan applications can be smooth through the transaction of buying and selling a home. The problem arises when hiccups come. Most real estate transactions have some type of issue. Issues with real estate transactions can include missing financial documents.
Do you have your taxes filed? Are your pay stubs correct? Can you verify large deposits into your bank account? Are you commission-based?
What employment history is needed for a home loan?
Are you a contracted employee? Are you self-employed? These are all some of the things your lender will need to know and can significantly affect your monthly mortgage payment.
Sometimes companies like a Rocket Mortgage or Quicken Loans will have strict guidelines, and that’s it. A local lender might suggest how to get the loan through underwriting since most local lenders deal with the same underwriters daily. Local lenders know what to look for when submitting your home loan application for approval.
What types of loans can I get from an online lender?
Almost all of the Quicken Loan-style companies offer generic single-family home loan. Most will give home loans to townhomes and condos. The tricky part is when a property is more unique. Rocket Mortgage’s website states vacant land loans are most accessible through community banks or credit unions.
Some lenders will lend on manufactured or modular homes. Some have stricter guidelines than others. This is where a local expert comes in. Many local lenders know their competitors’ policies, and some have built relationships with each other to send home buyers to another bank.
Most online banking companies stray away from home equity lines of credit, personal loans, but they will refinance your home. Secondary home purchases such as rental home loans and vacation homes are much more challenging to be approved for with online lending companies.
What about Lendingtree Mortgages? Is LendingTree like Rocket Mortgage?
No Lendingtree has companies buy leads based on the information you submit to their website, and your statement goes out through a marketing lead generator. Lendingtree is considered a mortgage broker, they aren’t giving you a home loan themselves. What does it mean for you? It means your phone is going to ring off the hook.
These lenders have colossal call centers calling every lead. For the call center, the quality of the preapproval letter doesn’t matter. The quantity of leads converted is most important.
How do I get the best mortgage rates?
Simply submit a lot of home loan applications. Lendingtree’s slogan is “When Lenders compete, You win.” There’s no denying Lendingtree is correct here.
Mortgage rates aren’t the same. Multiple variables affect your interest rate. Example Rocket Mortgage offers a lower rate but adds fees to your closing cost or monthly payment.
Are you comparing a fixed rate mortgage to an adjustable-rate? There’s a huge difference between fixed-rate mortgages and adjustable mortgage rates. After the end of a certain time, your rate may change.
An adjustable rate mortgage will have a lower interest rate right now but later it will balloon up. So how long are you looking to stay in your home? This is a huge factor in choosing between adjustable-rate and fixed-rate home loans.
Will submitting multiple loan applications hurt my credit score?
As long as you apply for your home loans within a 14-day window, your credit score will not change. A myth of the home buying process is that every loan submission drops your credit. This is not the case. Use the 14-day window to shop for the best lender for your home purchase.
What do I need to look for in a lender?
A lender who knows your area and also knows the loan products for your next real estate purchase. Local banks often have down-payment assistance programs that can help you find your dream home. Search for a lender that has open communication with you and is easy to get to. If you don’t have your lender’s cell phone number, this should be a red flag.
Today’s real estate market doesn’t allow lenders to get back in touch with you in one business day. Sometimes our home buyers will need new pre-qualification letters. Buyers will have monthly payment questions throughout the week. There should be an open line of communication between your lender and your lender’s support staff.
Why should I trust a real estate agent’s suggestion on what lender to use?
The short answer is they are in the field together. RESPA Laws make kickbacks illegal for Realtors to receive unless all parties are aware. Most real estate agents suggest a lender because they want the deal to go smoothly. The allegiance is the friendship and bond, nothing financial.
Just like you take the suggestion of a friend of where to eat, we Realtors referral mortgage lenders so that you can have a pleasant experience just like your friend does when suggesting a restaurant.
At the end of each transaction, our real estate agents at Mantle get feedback on the transaction as a whole. Mantle agents always want to improve, and one way they know how to do this is by checking each part of the transaction’s satisfaction.
Our agents check with the quality of work from our lenders, inspectors, and attorneys we suggest. We do this to get better as a team and to learn from each home purchase. In 2021 the Rocket Mortgage review showed the lowest satisfaction score from our clients.
Complaints included submitting the same paperwork multiple times to multiple people. Broken promises of closing dates, appraisal disputes, and a lack of communication from the Rocket Mortgage team.
With all of the facts adding up, this is why or local agents suggest our local home loan lenders. Not only are the buyers and sellers much happier in most cases, but it also supports our local community.
Who do you usually suggest for home loans?
We have a list of preferred vendors. We use these lenders, repairmen, attorneys, etc. because we know they will protect our clients and be honest and truthful. One of our most referred lenders is Movement Mortgage and Toby Stanfield. If you are a lender and want to be added to this list you can sign up and request a review to be a preferred vendor.
About Mantle Realty
Mantle Realty is a leading independent real estate firm based in the Triad of North Carolina. Mantle is passionate about providing clients with cutting edge technology and hometown service, whether they are buying or selling a home.
Many of Mantle Realty’s agents have lived in the areas they serve their entire lives, and love turning their clients into their neighbors. With offices in Kernersville, Lexington, and High Point, Mantle is equipped to cover all of the Triad with convenience and care.