The survey said that while consumers are cashing in on the speed, convenience and savings found online, many consumers still prefer the human touch when it comes to certain aspects of borrowing money to buy a home. That's largely due to the limitations found in Web-based mortgage offices and consumer concerns about shopping online. To help you understand and overcome those limitations, I discussed online and off-line mortgage shopping strategies with two experts. Earl Peattie, president of Morro Bay-based Mortgage News Co., a mortgage rate monitoring firm, and Warren Myer, CEO of the mortgage Web site developing and consulting firm that conducted the survey, came up with this insight.
Refinanced mortgages are easier to navigate online than home purchase mortgages.
Home purchase mortgages, involving two parties and a longer escrow, aren't always a good fit for many automated loan systems. That's changing, but online loan systems are cookie-cutter formats that are a better fit for less complicated refinanced mortgages. With limited knowledge of the mortgage process, first-time home buyers should be especially wary of online mortgages, particularly if you have to beat the clock in escrow. That's good advice for homeowners refinancing, too. Start online, stay online.