Given today’s market conditions, of higher interest rates and rising home prices, consumers are looking for every opportunity to decrease the cost of homeownership.
The traditional and outdated methods of calling a bank, lender or mortgage broker no longer serve the best interest of homebuyers and owners.
The problem is that a mortgage is one of the largest debts we hold. The financial impact of not capturing the best mortgage rate with the lowest fees is equal to about 10% of the price of a home.
In this age of computing, many consumers have abandoned traditional lending and have found a haven for maximizing their purchasing power, and capturing 10% more in purchasing power for free compared to traditional loan offers by using an Online Mortgage Pre-Approval Marketplace.
How traditional mortgage pre-approvals are costing homebuyers 10% in purchasing power?
The cost and savings difference of online mortgage pre-approvals.
First, it is important to understand the cost/savings difference between an “OK” rate mortgage loan, and the lowest rate and fee mortgage loan is approximately 10% of the purchase price of the home.
By using automation, these systems will typically return a 1% lower interest rate mortgage loan compared to most all other lenders and banks. That 1% is normally equal to approximately 10% of the purchase price of a home.
So, if the home price is $450,000.00, that’s a cost/savings difference of $45,000.00 that could be captured on day one.
The culprit; traditional mortgage pre-approval and loan shopping
Real Estate Agent Preferred Lenders
Typically, real estate agents will recommend their preferred lenders because they have a level of comfort working with a familiar lender. However, these lenders do not necessarily offer the best lending terms in the market.
Real estate agents have multiple clients, and if each client brings their own lender, then the agent will feel like they do not have control over the transaction and feel safer working with a lender they are familiar with.
This is understandable, given there are so many lenders. Their just concern over unnecessary delays is understandable; however, there are lower-rate lenders that do close loans efficiently and without delay.
The financial loss of not capturing the lowest mortgage rate and fee loan starts with selecting the lowest rate mortgage loan pre-approval.
The common mistake is to get a mortgage pre-approval with any lender, and not fully searching the best loan terms in the market.
The good news is that through automation, there are simplified loan pre-approval options that give you the ability to accurately identify the lowest rate and fee loan and obtain a pre-approval all within 3 minutes of time.
DYI: Self-searching for better mortgage pre approval rates
For the homebuyers who decide to search on their own for the best terms on a mortgage pre-approval, quickly realize it is like looking for a needle in a haystack.
There are too many teaser-rate offers that most do not qualify for.
Then the time it takes to call each lender and sort through all the loan terms is beyond overwhelming.
Most often, these homebuyers will throw in the towel, as they quickly rationalize, “maybe it’s just not worth it.” Well, until now.
How does an Online Mortgage Pre-Approval Marketplace work?
An online mortgage pre-approval marketplace is a multi-lender loan pre-approval website that matches your basic profile to the lowest rate and fee mortgage loan that you qualify for.
These systems have automated the underwriting guidelines for several National lenders and lenders in the marketplace.
Within less than 3 minutes, you can identify the lowest rate and fee mortgage loan and see all rate information, closing cost, and loan terms.
Can I use an Online Mortgage Marketplace without having my credit pulled?
Yes, there is no need for a credit pull. These sites, like EquiFund’s online mortgage market place, understand that most consumers know their credit scores and basic information.
Their objective is to give you the opportunity to see how low the best rate and fee loan is matched to your basic profile.
They believe that once you see these loan offers, you will be more than willing to initiate a final full loan pre-approval.
Do this Online Mortgage Pre-Approval Marketplace close and fund loans?
Yes, these online mortgage pre-approval marketplaces are contracted with multiple lenders and will originate, process, and close your loan request within 30 days or less with the lender that offers the lowest interest rate.
Do these online mortgage pre-approval marketplaces offer any guarantee?
Some online mortgage marketplaces offer the lowest interest rate and fee mortgage loan guarantee. This is possible because their automation is designed to serve your needs, not the lenders’.
It’s a non-bias lending platform that allows you to capture the best loan.
These services operate similarly to the way you shop for an airline ticket. For most of us, the thought of calling each airline, being placed on hold, then providing the flight details and then repeating with the next airline is overwhelming and time-consuming.
Conclusion for online mortgage pre-approvals
In today’s market, now more than ever, it is important to not only protect, but improve your financial security.
Given that your home is most likely your largest investment and carries your largest debt, the impact of taking an “OK” rate mortgage loan can significantly affect the health of your wealth.
Taking advantage of technology that simplifies and promotes your financial health is important, not to mention the peace of mind that you get knowing you captured the best deal.
The next time you are considering purchasing or refinancing a residential home, then take a minute to look at the wealth-capturing opportunities of using an online mortgage pre-approval marketplace.