Online Mortgage Solutions - Who To Choose?

Choosing the right online mortgage solutions may seem like a daunting task, but there are several clues you can use to help narrow your choices and make a more informed decision.

Please keep in mind that while most online businesses are legitimate, you should still take precautions before undertaking any transaction that involves significant amounts of money. This is especially true when working with a financial institution, such as an online mortgage company.

Although all online mortgage lenders share the same specialty—lending money to homebuyers—three characteristics can set them apart: customer service, accessibility, and value-added services.

When choosing online mortgage solutions, it’s important to compare not only the interest rates and fees, but also the more “intangible” aspects of each company.

How an online mortgage broker presents itself through its website can give you some insight into the company’s professionalism, its values, and how it treats its customers. With that in mind, let’s look at the first of our three comparison criteria: customer service.

Service matters, even online. That’s why it pays to look for an online mortgage company that places a high value on quality customer service.

Although it’s difficult to gauge customer service through a website, you should be able to get a sense of where each online mortgage company stands by reading between the lines.

A customer-focused company will list the benefits of doing business with them. They’ll focus on the quality of their customer service and will emphasize the priority they place on being helpful and available to their customers.

For example, if the online mortgage company mentions working one-on-one with consumers, that’s a pretty good indication that they care about customer service.

Of course, customer service is just one of several criteria for choosing an online mortgage company.

Accessibility is another sign of a reputable online mortgage company. “Accessibility” simply refers to how easy it is to reach the company, and how responsive its representatives are when you contact them.

Everyone has a different opinion of what constitutes “good” accessibility. For some people, this means an immediate response to a phone call. Others may not mind leaving a voicemail. As you evaluate these online mortgage solutions’ accessibility, gauge it based on your own expectations.

Is there a way for you to reach a person—for example, through a toll-free number or real-time online chatting? If you’re seriously considering doing business with this particular online mortgage company, you may consider giving them a call (or dropping them a note) to gauge the response. Ideally, someone will answer your call right away.

Having a direct phone number or address also gives you a way of employing one of the most valuable tools in a consumer’s arsenal: Checking the company’s record with the Better Business Bureau.

Not every online mortgage company is a member of the Better Business Bureau—but you can still check for a history of consumer complaints. You can research both local and national businesses through the Better Business Bureau’s site at www.bbb.org.

Keep in mind that a lack of contact information doesn’t necessarily mean that the company is suspect. But being able to reach someone in person is an important step in the right direction. A direct phone number gives you the reassurance that you’ll be able to get assistance down the road, if necessary.

Accessibility is important, but it’s still just one of several criteria you can use to choose the right online mortgage solutions.

All online mortgage companies share the same purpose: To lend you money so you can buy a home. On this level, it’s fairly easy to compare one lender to another, by evaluating their rates, closing costs and so forth.

But it may be worth your while to consider other aspects, too. We’ve already discussed some ways of gauging a company’s customer service and accessibility. Now, let’s explore some of the value-added services that set some online mortgage solutions apart from the crowd.

Help buying a home: Buying a home can be complicated, even if you have a realtor. In fact, more sales are falling through these days because of financing issues than was common in the past.

That’s one reason some mortgage companies are stepping in to offer their customers help buying a home. Services range from property searches, to realtor recommendations, to strategic coaching. If you think you could benefit from these services, find out whether the online mortgage company you’re considering can help.

Just as many homeowners are choosing to sell their own properties (look for the “for sale by owner” signs), more buyers are opting to represent themselves and save the money they would otherwise pay a realtor.

In response to this trend, some mortgage companies have begun offering buyers’ representation coaching. If you’re intrigued by the idea, but aren’t sure how to start, working with an online mortgage company that provides this service may be a real boon.

Your credit score is one of your most important assets. Some online mortgage companies recognize this, and actively work with their customers to help them improve their credit scores. Services may range from do-it-yourself programs to active coaching with a trained credit counselor. Ask the online mortgage company you’re considering whether they offer any programs to help you become a more savvy borrower.

As we’ve seen, choosing an online mortgage company doesn’t have to be daunting. By looking beyond the interest rates and fees—and checking each company’s customer service, accessibility, and value-added services—you’re more likely to find online mortgage solutions that meets your needs and expectations.