If you are looking to buy property, you may have heard you can apply for a mortgage online. You might be wondering if it is safe to apply for your home loan online. Please read on for everything you need to know about applying for a mortgage online before making your decision.
What is an online home loan?
An online home loan is one that you can apply for via the internet from a bank or lender that does not have a branch and does not employ staff to meet with customers in person.
Some advantages of using an online lender can be access to cheaper interest rates and lower ongoing fees. However, the disadvantages can be stricter lending policies and not necessarily being suitable for your situation, which could lead to your application being declined and your credit file being negatively impacted.
How does applying for a mortgage online work?
If you apply online for a mortgage, you will complete your application via the internet including your verification of identity. The online lender will then review your application, organise a property valuation, assess your application and proceed to approval and settlement.
You will likely have an online portal to sign into and access your application and you will have phone support available.
For time-poor home buyers, the process can sound attractive, however, it is important to keep in mind you are applying directly through the lender without the benefit of expert advice for your situation. An online lender has one product to offer and will only assess if you are eligible for it, they will not tell you if there’s a better deal or product available to you.
If you do not fit into the neat box of online home loan applications, you will struggle to get approval via the lender. Things that will make online home loans unsuitable include:
- The property you want to buy is unique in any way
- The property location considered rural or regional
- You need a construction loan
- You have unusual employment
- You have bad credit history
- You’re buying in a complicated trust structure
- You need home loan features that are not available from the home loan lender
Applying for a mortgage online vs in person?
As we’ve just discussed, applying online puts all the work on you, from finding the right online lender, to navigating the application process and then liaising on the phone with the lender for any issues that arise.
If you are making one of the biggest financial decisions of your life, buying your first property, or adding to your real estate portfolio, you want to make sure you are getting the right advice and information.
In person applications do not have to be time-consuming. Mortgage brokers are a friendly bunch and we do like to meet you in person so we can best understand your needs and your goals. We also respect your time so we won’t waste it! We are experts in efficiency and dealing with home loans from a range of lenders every day means once we’ve met you we can do all the hard work for you and get you an answer to keep you moving forward towards your settlement as quickly as possible.
If time is one of the factors you are considering online, an experienced mortgage broker can assist by doing the research for the best product for you and will liaise with the lender on your behalf, in your best interest.
What is best for me?
Although applying for an online mortgage might suit some people, most home buyers will benefit greatly from using an experienced mortgage broker who can help you through the whole process. Contact us today and find out how we can save you time and eliminate the stress of finding the right home loan.