Is It Safe to Apply for an Online Charleston Mortgage?

Have you asked this question: Is it safe to apply for an online mortgage here in Charleston?

The short answer: For most people – Probably not!

Then why do we have an APPLY ONLINE BUTTON? Very good question and here is the answer.

A recent article in the New York Times reported that more and more people are applying for their mortgage loans online. We use the internet today to shop for everything and now many of our financial transactions that we traditionally conduct only in person are done at the computer screen. From Banking and insurance to ordering our groceries, more and more business transactions are being conducted online. Most of the time your data is safe even though recently news reports of information being hacked at some of the Nation’s largest banks and retailers give me pause when I say that.

But more than this, shopping for your Charleston mortgage online can become a very frustrating, confusing and even overwhelming ordeal if you’re not careful. So, for most people that apply online – they probably shouldn’t.

Charleston Mortgage Loan CashHere’s more about why not:

In a lot of cases individuals are applying for loans on the internet only to find out that they were not applying for a mortgage at all. In its place, they end up entering their personal information into a database for a company that has promised to give them an approval for an online mortgage but instead turns around and sells the information to other companies.

Instead of getting a call about their mortgage application from a Professional Mortgage Broker they are flooded now with calls and emails soliciting to help them obtain the loan. Even worse, often they receive solicitations from home improvement companies, credit repair companies, home insurance companies, and the list goes on and on.

Of course not all companies offering online mortgages are bad. Many in fact, like us, use safe, convenient processes that let you stay in control and use the internet access as a vehicle to facilitate the process. Start with our quick start online with basic information and you will be assigned a Personal Mortgage Lender that can complete the actual process of approval, not just a useless online pre-qualification.

Some warnings:

Avoid any online mortgage company that may promise approvals regardless of your credit. It is very unlikely that you will get a mortgage offer and even worse many can be scams just to get your information and use it to sell to credit repair companies that charge fees to “clean up” your credit with very little success.

Avoid unsolicited emails offering you an online mortgage. In most cases these companies are seeking your information only for the purposes of selling it so you can get more unsolicited emails and offers.

Most mortgage and real estate professionals polled recently have stated: Even though an online mortgage might seem like a convenient way to apply for a loan, in almost all cases it would be better to apply in person. Plus, working with an independent broker that will get to know you and your situation will allow you an opportunity to negotiate for a lower price, interest rate and tailor the terms to suit your needs.

Also, watch out for having your credit looked at by several online companies. This can actually cause a short-term drop in your credit score. For more on how to improve your Credit Score. Here is a short video with some handy tips including the one above: