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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 underwriting.