HomeTraq University

3 myths of traditional vs online mortgage lenders

Written by Mark Gorman | Jul 10, 2019 12:16:00 PM

Deciding to buy a new home is one of life’s most important decisions. Once you’ve given yourself the green light—and after the euphoria and surge of adrenaline spikes and subsides—you need to identify your specific financial capabilities and goals, and what you require from your mortgage lender.

 

Proponents of the traditional approach to securing a home loan—that is, engaging a big bank or brick-and-mortar lender—cite personalized customer service as paramount to the convenience of the digital application. Consider the following ‘traditional mortgage myths’ below:

Myth #1
Working face-to-face with a loan officer ensures that your file is in good shape and prevents problems in underwriting

Obviously, asking for answers regarding the timeframe of your loan approval in a face-to-face meeting precludes the ignored voicemail, but any company worth its customer-service salt trains its loan officers that spotty or non-existent comms are the devil.

Myth #2
Online mortgage lenders are licensed in multiple states but don’t have physical presences

This may be true for some online lenders, but not all. Though the vast majority of business is conducted over the phone and email, there is nothing preventing you from meeting and talking with a loan officer at any nearby location. If a face-to-face meet is what you feel you need, it’s certainly not discouraged.

Myth #3
Traditional banks offer better customer service

This myth is a relic of the early days of online lending, when call centers prevailed and personal relationships were sacrificed in the name of volume.

 

Think it is time to get a pre-approval?  A Pre-approval is a game-changer. It shows sellers you mean business. You’ve done your research, you know your budget and you’re ready to plunk down some serious cash on a brand-new home. But what exactly is a pre-approval and how can it give you a leg up?