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What Is An Online Mortgage?

Perhaps the single biggest binding commitment you will make in your lifetime, barring marriage (and even that's becoming less 'in vogue' these days); is your MORTGAGE! The word itself can have most of us shuddering in our boots with fear and to be honest deciding to take out a mortgage isn't something you should take lightly. However, it's also not the unattainable and unreachable goal that some naysayers make it out to be. As long as you are confident in your actual financial situation and comfortable with the mortgage rates offered...an online mortgage could lessen your stress load. That is, if you can sort through all of the Internet 'mumbo-jumbo' and technical talk! The option of online mortgage lenders will appeal to you for their simplicity, speed and competitive perks as well as their more relaxed approach to lending.

How to Do It

Applying for your online mortgage is easy to do if you follow a few basics steps:

  • 1. Know how much you want to borrow. This will be based either on your income and current assets if you are still house hunting or; the value of the property you are investing in.
  • 2. Get your finances in order - make sure you've paid your latest mobile bill and that outstanding parking fine before you go ahead and apply for your online mortgage! One black mark against your name during a credit check could cost you time and money in application fees.
  • 3. Collect your latest pay slips (usually a month is sufficient).
    Alternative proof of income could be your monthly bank statement (you'll need a few months at least) or a tax return if you are self-employed. Check these requirements with each of the online mortgage lenders before you begin any application process.
  • 4. Use an online calculator to compare current mortgage rates, and check out your repayment options. What can you afford to borrow? Over how many years would you like to pay the mortgage back?
  • 5. Complete the online mortgage forms with your chosen lender and lodge them. You will usually receive instant confirmation that the application has been received and a preliminary decision on the loan takes a few days at most.
  • 6. Go shopping for your new dream home or investment property knowing you got a great deal!

Online Mortgage Lenders Vs Banks

Ok, so the banks are definitely the big-boys in the current mortgage market - there's no doubting it. They have the advertising, the branches, the celebrity endorsements and the huge cash-funds to back them up (supported by us and our monthly fees, mind you)! So what do online mortgage lenders have to offer that banks don't? Ease. Really. It's that simple. You can research the different mortgage rates and lenders online on your lunch break, from the convenience of your laptop or home computer, whilst drinking a cuppa, or patting your dog! Basically you don't have any lines to wait in, no stuffy commission-based bank employee breathing down your back and no traveling back and forth to cut through the seemingly endless red tape. Kick back, relax and face your online mortgage in a state of Zen! The other great thing about online mortgage lenders is that there are so many of them! Lots of lenders means lots of competition for your custom - and that translates to lower application fees and better mortgage rates for you! The lack of overheads like employees and office space also allows online mortgage lenders to give the 'big boys' a run for their money!

Eyes Wide Open

When committing to your mortgage, whether it's online or not - you are taking a BIG risk. Your future financial situation can be dependent on all sorts of things like employment, health, property values and recessions. So take the time to read all the fine print for your online mortgage before you apply. Is there income protection and life insurance available? What about penalties for early payout? Are there options for splitting between fixed and variable mortgage rates? These are questions you would ask of any financial institution before you made such a commitment; so treat your online mortgage application the same way. Last but not least, look out for scams. They probably aren't as prolific as our paranoid banker friends would make out - but they do exist. NEVER give out your personal information without first checking the site out for authenticity. If your virus-check 'red flags' any site, get out of there! Likewise, a lack of secure payment options and premature requests for the transfer of personal information can be a warning sign of fraud. Look for misspelled words, omissions like contact details and company tax information and other obvious tattletale signs. If in doubt, look for another more reputable broker - there's certainly not a lack of genuine online mortgage lenders out there waiting for your business!