How does the entire process of a mortgage work? There are six steps that you take for a mortgage application approval. These include pre-approval, property shopping, mortgage application, loan processing, underwriting, and loan closing. For the third step, you can go for either the online or offline mortgage application method.
As a borrower, it’s essential to know the ways and analyze which is better according to your needs. So, let’s figure out both.
Mortgage Application Methods
Now we know the process of the mortgage application, the steps, and the duration of the loan completion. The next step is to approach the lender for a mortgage application. However, how do you search for lenders? You have two options. Go online or ask for personal or offline lender services.
The mortgage application method depends on the borrower’s choice and needs. However, they must determine the merits and demerits of both mortgage application methods.
Online Mortgage Application Method
With the adoption of technology, online mortgage services are multiplying. The online mortgage application is a hassle-free service provider for borrowers. They can easily compare online mortgage services and check which one fulfils their checklist.
Following are some of the key advantages of the online mortgage method:
- Less time for loan sanction: The online mortgage service provider takes 3-5 days to sanction the loan.
- Easily tracking the mortgage application: Borrowers can get online updates and track their loan application status.
- Easy Documents submission: In online mode, the borrowers need to upload the documents on the mortgage site—no risk of loss of documents during the whole process.
- Better transparency: They show the closing costs, interest rate, and all the fee details. They don’t ask for extra charges at any mortgage approval stage.
Most importantly, the loan application can be applied anywhere and in any part of the world. Also, you can easily compare various lenders with the comfort of your home.
With such merits of the online mortgage application method, let’s also analyze the demerits:
- You may not qualify for a loan approval when your credit score is low. Though you may give a higher interest rate to sanction the loan.
- Lack of physical interaction for first-time buyers.
- Probability of errors during document upload or at any stage.
- Chances of the data leak since online lenders are less secure.
Offline Mortgage Application Method
The offline or the physical mortgage application approval is the traditional method. The borrowers looking for a home loan go to different lenders and research various mortgage services provided by banks, credit unions, and lenders. So, let’s assess the merits and demerits of the services offered by offline mortgage application providers:
The following are the advantages of approaching offline:
- The lenders are physically present to solve your queries. They are easily accessible to help and advise the borrowers.
- It is a better approach for someone who wants to know the process or is new to the mortgage application process.
- The borrowers have various questions about the process, the documents required, and verification processing. This is best handled through physical contact.
- Provide better solutions for borrowers with low credit scores.
Following are some problems you may face when working traditionally:
- It takes more time to sanction the loan. The offline mortgage usually takes 7-10 days to approve the loan.
- Additionally, physical checking and processing take a lot of time.
- Verifying the financial documents, income proofs, and loan eligibility by checking the credit reports.
- Afterwards, the documents go from one department to another until final approval.
- All the process is done manually in an offline mortgage approval. This may lead to documents being lost or misplaced by mistake.
- Travelling to banks and offices to sign and submit the required documents.
This, as a whole, takes up the borrower’s time of loan approval.
If you are an active buyer, you must know all the proceedings and processes. So, you must find the online application method better as it saves your time and allows you to perform thorough research to get the best deal.
However, if you’re a fresh buyer or first-time buyer, it’s recommended to apply through offline mode. Through offline, you will know the actual process, loan approval duration, and better guidance from lenders. You must choose the mortgage application method best suits your needs and requirements.
For more details consult us: https://mortgageservicesce.com/contact/