Mortgage Loans Guide

These days there is very little that you can’t do on the internet.

Many people are beginning to use the internet for financial transactions that have traditionally only been conducted in person.

You can open a checking account online, invest in stocks online, apply for credit cards online, and even get approved for an auto loan online.

A question does arise though:

How safe is it to apply for an online mortgage?

Can you trust an online mortgage company to give you hundreds of thousands of dollars in the form of a loan to purchase your home?

Applying for an online mortgage seems like a fast, easy way to find out if you are approved for a home loan. There are no loan officers to deal with.

If you are denied for an online mortgage, you can deal with the disappointment in your own home rather than having to do it in front of several people at a time. Granted, there are many reasons that a person might want to apply for an online mortgage. However, it isn’t the safest or most trustworthy way of obtaining a mortgage.

When you apply for an online mortgage, in most cases, you are not applying for a mortgage at all. Instead, you are entering your personal information into a database for a company that promises to give you approval for an online mortgage but instead sells your information to other companies.

Soon after applying for the so-called online mortgage, you’ll begin receiving floods of calls and emails from these loan officers wanting to help you get a loan. You may even receive solicitations from home improvement companies, credit repair companies, home insurance companies, and the like.

Not all companies that promise online mortgage approval are bad. In fact, there are many companies that are legitimate mortgage lenders. The hard part is sifting through all the offers for online mortgages to find the companies that are genuine.

One of the ways you can tell if an online mortgage lender is truly a lender is through the name. Many of the larger national mortgage lenders provide online mortgage approval through their websites. Name recognition is one of the easiest ways to tell if the company is legitimate.

Make sure any company that you plan to do business with has a business license. The company’s website should have a “contact us” number listed. Use this number to call and ask if the company has the proper licensing to lend money.

Knowing how to recognize a scam is often easier than trying to tell if a company is good. Don’t apply for any online mortgage that promises you approval regardless of your credit. It is very unlikely that you will be extended a mortgage, even an online mortgage, if you have bad credit or no credit history.

Avoid responding to unsolicited emails offering an online mortgage. In nearly all cases, these emails are fraudulent.

While an online mortgage might seem convenient, the best way to apply is in person. This way you can negotiate a lower price for the mortgage than you would be able to do through the internet.



By: Gerald Mason

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Borrowers with “bruised credit” seeking commercial loans should not give up all hope, despite the credit crisis.  There are still commercial loan options for borrowers with scores in the 500’s.   And every action, large or small, should be taken by the borrower to improve their score.  

Due to all of the bad news that we have all been subject to for the last year and half, many people have basically stopped bothering, even though they may have a doable deal.  Owner occupants, meaning borrowers that occupy the commercial building with their business, have some of the best “bad credit commercial loan” options out there. 

For example we are still closing loans with rates in the 6%’s…  At up to 80% sometime even 85% loan to value.  These loan programs are tied to the Prime Rate which is currently at 4% which explains the low rates.  The margin with these loans is normally 2.75% over, so the borrower’s rate is 6.75% on most deals.  Amortization period is 25 years.

It goes without saying that every action should be taken by the borrower to improve their credit score.  The higher the score, the more options they have as far as loan programs.  Probable the most important thing for borrowers to learn to do is write a proper dispute letter.  Its critical to know the laws and to be able to quote them on the letters so that the creditors and bureaus know that you know your rights, and that they can’t just blow you off (the free eBook describes how to do this – link here).  Or you can always go to your library and get a paper version. 

Borrowers can do all of the work themselves and do not have to pay a dime to anyone to help them do this.  Unfortunately most credit repair companies are unscrupulous and have poor track records. There are no secrets or tricks to this; it’s all about follow up, being organized and presenting the proper arguments.      

As a commercial mortgage broker we are interested in closing commercial mortgages, not selling credit repair.  “We want to get the chance to compete on commercial loans.  The better the borrowers look to the lenders the better chance we have of successfully closing loans”.  Comments Jeff Rauth, President. 



By: jeff rauth

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