Exactly how good are internet mortgage companies?

Question

Real Estate

Answer 1

As previously stated you have some good ones and bad ones. While you think that most of these companies can keep their overhead very low because they are an Internet company, they still have a lot of overhead and gaining top search engine rankings and maintaining them do not come very cheap. I have noticed a lot of misleading advertising coming from many of these online Internet companies to get people to visit their sites and I don't think that misleading customers or sometimes even lying to customers is very good for any business. As much as it pains me to say this Quicken loans is actually not a bad online mortgage company to work with. However, working with a company online is not nearly as good as talking with a live person to answer your questions and help make sure you are getting the right program for your situation. Shop around online a little but then deal with someone via phone or face to face meeting for the best overall experience.

Answer 2

The best thing you can do as a consumer is be educated. You can't say that all internet mortgage companies are bad, there are no absolutes. The major difference you are going to find between local and internet companies is when your with a local bank your going to be in front of someone and it brings a more human experience, an internet company you're going to get more competitive rates, because they have more options and are usually national companies or brokers buying leads from those companies. Like I said before, get educated, find what you want and shop around and see what the internet and your local bank offer, than make a decision.

Answer 3

Please don't go to those in here spamming for business.

As the others have said, it depends on the company and the individual mortgage broker. My concern is, what real stake does this internet lender have in making you happy? Will Marty S. be in the business 1 year, 5 years, 10 years from now? Unlikely. So, down the road, they aren't expecting repeat business and probably don't give a rip if they miss your closing date and you are looking at losing your earnest money.

Another concern I hear from those who try internet lenders is the bait and switch. They promise good terms up front, but when the final documents come through, it is a different set of terms, higher interest rate, higher closing costs, and the lendee either scrambles to find a new mortgage, or accepts the crappy terms.

And of course the internet is ripe with fraudulent activity.

Your local lenders are working in your community, working to maintain a great reputation so you will refer your friends and family to them.

Whatever you decide, good luck to you.

Answer 4

I worked with Countrywide online and had a lot of success and a good experience, although they are not strictly an internet mortgage company as I know they have brick-and-mortar offices and agents.

I was dealing with a fairly common online mortgage company whose name escapes me at the moment, but they seemed to be a good company, although I had better dealings with Countrywide.

Answer 5

Most are scams...you could feel safe using the BIG names like countrywide, bank of america, etc.

but most are scams...i spend alot of my time writing on answers to people and advising them not to fall for the other answerers who write in and say "email me--i can help you or i can get you a loan"...their loans are bogus and will only cause you grief.
for one they may take your info and then steal your identity...or two they will get you a loan, but it will be a bad loan such as an ARM (adjustable rate mortgage) where your payment constantly increases and you end up in forclosure.

I have always found it best to stay local....stick with your local banks...and keep the local economy strong. if your credit is good they will get you a traditional loan - which is what you want in this economy. (30 year fixed rate - no prepay penalty and put 20% down)...

good luck

Answer 6

I would NEVER recommend using a mortgage broker from the internet. The few experiences I have had with buyers using these sources is terrible. Late documentation, no response, long waits on the phone for customer service, and when closing day arrives and they're not ready, a stupid reply like "sorry, you will just have to delay your closing for several days'.

Don't do it unless you want a mess.

Answer 7

A high percentage are scams, including foreign financial and identity theft scams.

Answer 8

About as good as your local ones...there are some good ones and some bad ones.