First-Time Homebuyers: Online or In-Person Mortgage Brokers?
Buying
There’s no doubt about it: the digital age has changed the way we do everything, from shopping to getting a mortgage. Today, one of the most common questions first-time homebuyers face is whether to get approved for a mortgage through an online site, like Rocket Mortgage, or via a traditional, in-person mortgage broker.
Both options offer benefits and drawbacks. Therefore deciding which is right for you will involve your personal circumstances and goals.
Online Mortgage Lenders
Online mortgage lenders offer dozens of benefits. To name a few: they’re fast, efficient, simple, and full-service. When working with these companies, all you need to do is input your information and get an immediate quote. When you compare this to the back-and-forth of visiting an in-person broker’s office, printing out years of tax records, and signing physical papers, it seems like a dream come true.
Beyond those perks, working with an online mortgage lender can also be cheaper and faster. Which means you’ll have cash in your account quicker. The rates and fees associated with these platforms are less, thanks to the fact that these companies don’t pay significant overhead expenses like traditional brokers.
Finally, they may be a good option for people with credit scores lower than 700, since they don’t always use the same underwriters as big banks, and may qualify more people.
When it comes to the drawbacks of these services, fraud and scams are the two primary culprits. Giving out your financial information online is risky. It’s important to protect yourself by knowing the company you’re working with is legitimate. First-time homebuyers who work with online platforms don’t get the benefit of working with a real person. Especially with one who is on hand to answer all their questions.
In-Person Brokers
While they may be more expensive and time-consuming, in-person brokers have one significant advantage: they’re real people who can take the time to answer all your questions and help you find the best mortgage option for you. They are ideal for first-time homebuyers who need lots of guidance during the process. An in-person broker can provide tips on bosting your credit score to finding a real estate agent to work with.
The cons of working with these property specialists is simply that driving back and forth to their offices will take more time and effort than working with an online platform. Plus you’ll likely end up paying more in fees at the end of the day. These are small prices to pay, though, for many first-time homebuyers.
Smart Mortgage Decisions for First-Time Homebuyers
Purchasing your first home is an exciting process! These smart solutions can help you ensure you’re working with the right mortgage professional. By understanding the difference between online and in-person lenders, you can choose the right option and ensure a good mortgage experience across the board.
