Question:

How to compare mortgage lenders online?

Answer:

This would be a difficult task. To compare mortgage lenders online successfully, you may try collecting mortgage quotes but it is never guaranteed that lenders will disclose all relevant loan information on the GFE (good faith estimate). Also, if you never took a loan with a particular lender, which is usually the case, there is no way you would know how reliable they are and what their community reputation is.

Comparing Loans from Different Online Mortgage Lenders

For best results, try to compare only comparable loans. For example, 30-year fixed rate mortgages, 3/1 ARM, or a construction loan with 80% LTV, etc. You should compare

  • Loan rates and points,
  • Lock-in period,
  • Lender fees,
  • Lender requirements,
  • Maximum allowed LTV,
  • Mortgage insurance payment,
  • PITI reserve requirements,
  • Qualifying ratio,
  • Prepayment penalties (if any),
  • Possibility of restructuring loan options (rate reduction, or converting ARM to an FRM), etc.

These are very important loan features to compare before you are successful with home loan shopping. Also, remember to check registration and testimonials, especially if you are not dealing with a local bank or a large lender. A small local mortgage lender company may be your best shot - or not: it largely depends on how careful you are about your mortgage loan.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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