The Pros and Cons of Online Mortgage Applications

Online mortgage applications provide a way to streamline the loan application process. The online mortgage application makes applying for a mortgage loan faster and easier to accomplish. The additional benefit of an online mortgage application is to provide a borrower with bad credit a way to receive multiple offers and locate lenders that are willing to work with sub-prime borrowers.

Ease of Use

The online mortgage application is easier to use than paper applications. The information required to be entered into the system can be quickly analyzed and a decision can be made instantly or in a relatively short period. Online mortgage applications can also reduce the application fee and other costs associated with applying for a loan since they are easy to administer and more cost effective.

Online applications are also easier to understand than paper applications.  The questions are simple and straightforward and often include definitions. Paper applications do not provide definitions and most borrowers require the assistance of a loan officer or representative.

Environmentally Responsible

Using an electronic portal to apply for a mortgage is also an environmentally responsible way to obtain a mortgage. The electronic or online mortgage application has no paper that needs to be printed or sign, does not require a stamp or envelope to be mailed, and does not emit any ozone depleting emissions to be delivered. A borrower types in their information, presses the send button and automatically transmits their loan information to the processor.

Move Toward Online Mortgage Applications

More and more lenders are using online mortgage applications as a way to make loan decisions and process mortgage requests. This helps to cut down on certain overhead expenses for the lender, which should also result in lower loan fees and bring down the cost of the mortgage to the borrower. These savings are brought on by not having to generate paper applications and the other costs associated with printing and maintaining supplies.

Advantage to Bad Credit Borrowers

Borrowers with low, poor or bad credit benefit greatly by online mortgage applications. The electronic application can be shopped around amongst different lenders in order to match that lender’s requirements with the borrower’s profile. The online mortgage application can result in multiple offers from different lenders and provide the borrower with a needed loan.

Online mortgage benefits are a valuable tool in controlling mortgage loan costs and provided a way for borrowers with bad credit to access willing lenders. The application is environmentally responsible and a good alternative to the maintenance of staff and supplies needed to generate paper-based applications. Lenders that use online mortgage applications have a distinct advantage over other lenders.