Today’s world is digital. Financial transactions such as a mortgage are no exception. Many companies offering majority-digital or completely digital transactions have opened within the past 10 years, making it appear as though physical lenders are obsolete or at a disadvantage.
Despite what some potential homebuyers may think, however, obtaining a mortgage through people, not computers, has many advantages over that of online transactions. Below we detail four reasons why your next mortgage loan is better handled by a real person who’s able to utilize digital technology, rather than the technology itself.
1. Higher Regulations and Less Fraud
The online world is rife with scams and this, unfortunately, also applies to the online mortgage industry. With the tightening of financial regulations after the ’08 financial crash, it’s easy to believe there is no more fraud when it comes to mortgages. However, some issues still “slip through the cracks” and this is most easily seen online.
It is possible for you to give compromising information to a “lender” that promises low rates and easy repayment terms only to find that it was a scammer or hacker posing as a mortgage lender. Identity theft was at a record high in 2019, with over 650,000 cases and a reported 1.4 billion dollars lost nationwide.
With a physical mortgage lender that has offices of operation, you can verify that the company actually exists. Homebridge, for example, as one of the largest mortgage lenders in the United States, has a reputation that has been thoroughly vetted by many satisfied customers and industry partners alike.
2. More Personalized Service
At Homebridge, we understand that no two mortgage loans are alike. Two borrowers can have the exact same financial outlook on paper, but their wants from a home may vary greatly. Our Mortgage Loan Originators work closely with buyers so they can determine a lending option to fit their unique situation and needs.
Homebridge Mortgage Loan Originator, Brian Minkow has said, “I can’t tell you how many clients have come to me after they’d gone online and gotten a pre-approval from a lender. Then they go to purchase a house, and halfway through the transaction, the online lender says all of a sudden, ‘You can’t get approved.’ The client freaks out. And that’s when they get a hold of someone like me.”
If you’re a buyer who has questions about your application or other related inquiries, it’s not uncommon to reach out to your Mortgage Loan Originator past normal business hours. Many Mortgage Loan Originators are happy to respond to emails, texts or other communication methods during the homebuying process. With online lenders, you can typically only reach out to them through standard business hours and may have to deal with long call times.
3. Greater Product Selection
Since we understand that buyers have different needs and wants from their home mortgages, we have a wide variety of products to help accommodate each buyer’s preferences. Whether you want a traditional 30-year fixed rate mortgage or a 203(k) purchase renovation, we’ve got you covered.
For certain loans such as an FHA loan or a jumbo mortgage, many buyers choose to work with a real person who can help them navigate the complexities involved with these loans. Having a trusted confidant who has experience with these, and similar loans, can make a difference in the outcome.
4. Trusted Referrals
Your Mortgage Loan Originator often has a team of professionals with a track record of success that they refer their customers to for related needs. For example, if you are renovating and purchasing simultaneously with a Fannie Mae HomeStyle loan, then your Mortgage Loan Originator will recommend a contractor they know has done fantastic renovation work in the past. Likewise, if you are still in the process of searching for a home, they will recommend a Real Estate Agent who has helped buyers find their ideal home.
When you get a mortgage loan through a real-live person – you’ve not only taken the burden off of yourself to find people who can assist you, but you gain access to a trusted network of top-rated professionals as well.
While online lenders may be convenient, nothing can match the experience and quality of getting a loan through a legitimate, established lender. The resources you have access to, the products that can help you secure your dream home and the personalized services are simply unmatched by an online lender.
If you’re wondering what products you can use to get closer to your dream home, browse our loan programs page; you can get a good idea of the array of options that Homebridge offers before your initial conversation with a Mortgage Loan Originator.