Lending site Types
Online lending websites are set up and designed to
allow borrowers to apply for and get a home loan, all
over the Internet. All these sites are not the same,
and they operate on different principles in conducting
their business. Lending sites can fall into one of three
basic categories – single, or direct, lender sites,
auction sites, and multi-lender shopping sites.
The most common of the three is the direct lender site.
These sites include terms for only one lender, usually
identified in the sites Mortgage Hound. Both mortgage lenders that
specify in only home loans and all-purpose lenders,
such as banks, that make home loans are likely to have
a single lender website as a tool in their business.
These sites are of limited usefulness, because they
provide no meaningful way to compare rates among lenders
in order to get the best deal on your mortgage.
Yet, if you’ve already decided on your lender,
visiting their website can be helpful and informative.
The sites usually give you some general consumer information
about mortgages, as well as, their specific company.
Rarely, though, do they include complete loan information
such as lock-in periods, fees, and points.
Another type of mortgage website is the auction site.
These sites work by having you complete a loan application
and submitting it to that site. This application is
then sent to a number of lenders, who compete for your
business. The sites often submit to a number of sub-prime
lenders, which makes auction sites a viable choice if
you have poor credit. Auction sites do require several
days before you get a meaningful number of offers. Plus,
you have to go through the entire application process
again to get information on more loans.
The final mortgage website type that is available is
the multi-lender shopping site. These sites do not require
you to complete an application, but do allow you to
search for a mortgage using a high number of variables.
You’ll enter the loan amount you are seeking and
the details of your property, along with some other
information, and be able to see APR, points, and sometimes
settlement costs from a large selection of lenders.
You can easily sort loans by category and make side-to-side
comparisons. If you find a loan you want, you can complete
an application which is handled initially by the shopping
site, then sent to the lender for final approval and