Agent

Should I use an online real estate lender?

History of late closings looms
Published on Jan 3, 2005

Several years ago, real estate agents feared the worst when they heard the buyer was using an online lender. In many cases, the agents were not overreacting. Often mortgages originated online closed late, and this can wreak havoc with a home-purchase transaction. Some online loans never did close. One home buyer who used an online lender e-mailed his lender daily and did everything he could to stay on top of the loan process. Despite all his efforts, the transaction closed one week late. A big problem with online lending was the lack of accountability. There is often no one to complain to when things go wrong. A good mortgage broker can usually grease a squeaky wheel. Without an advocate working on your behalf, it's difficult to get the job done. Anecdotal evidence suggests that the world of online lending has improved. Recently, well-qualified buyers with a large cash down payment had no trouble closing the purchase of their new home on time using an online lender. However, there...

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