Should You Finance Your New Home through an Online Mortgage Company?
When searching for new homes for sale in Stephens City, VA, you may be wondering what type of mortgage company you should approach for a home loan. With as much business as Americans do over the web every day, it is not surprising that many of them are turning to online mortgage companies to finance their new homes. You can find many of the same benefits and features for online mortgage that you will find with a traditional mortgage lender. There are advantages and disadvantages to financing a mortgage online, so you should carefully consider all of your options before deciding on financing.
How Do Online Mortgages Work?
Much of the mortgage process can be completed over the web with an online mortgage company. You may even be able to get pre-approved for a loan before you start looking for new homes for sale in Stephens City, VA. Online mortgage companies are set up to complete the application process as quickly as possible. Their underwriting software allows them to collect the minimum amount of information as is necessary to complete the mortgage application process.
Qualification will involve reviewing your financial documentation, such as prior year’s tax returns, paycheck stubs, W2 statements, and a list of your monthly expenses. The lender may need to verify your income and check your credit report. The credit score requirements vary with online lenders. Generally, if you have a credit score above 600, you should be able to qualify for a home loan with an online mortgage company.
How Do I Know the Lender is Reputable?
You should always find out if a lender is reputable before obtaining a mortgage with them. Check with the Better Business Bureau. If there are any complaints against the lender, you will most likely find them on their website. Your state’s Department of Banking is also another good place to check when trying to find a reputable online mortgage company.
What are the Advantages and Disadvantages?
One of the best advantages of dealing with an online mortgage lender is that the process is much quicker than dealing with traditional lenders. They may also have less stringent credit guidelines for approving you for a home loan than many traditional lenders such as a local bank. A disadvantage to the online process is that you are not dealing with your loan officer face-to-face. Many things can get lost in translation in an online environment and communication of important facts may not be clear.
For families who are searching for new homes for sale in Stephens City, VA, online mortgage lenders may be a great choice for financing; especially if you have good credit, have ready access to your financial records, and have a good and steady job. The process is faster than many traditional mortgages. Ask your broker for his advice on who the best online lenders are for financing a new home.
New Homes for Sale Stephens City VA – For more information about financing options for new homes for sale in Stephens City, VA or for a complete listing of new homes and condominiums in the area, contact broker Andy Waldo at (540) 542-0088. Working with a broker will make buying or selling a home a much simpler process.