The advantage of applying online is that you only have to fill out the necessary forms once, but you get access to hundreds of lenders that want your business. Typically, you can get a loan for half a percentage point less online than you'd pay at a local bank. The company says the online mortgage lenders are generally inexpensive and reliable. In addition to price, consumers should choose an online lender based on other issues, such as customer service and performance guarantees. Saving a quarter percentage point is not worth getting delayed at the closing table.
Some sites guarantee the lowest rate or that they'll approve the loan by a certain date.
Another issue to pay attention to is privacy and security. Most sites use data encryption to protect the information you send over the Web. But the online lenders, such as E-Loan , use outside auditors to ensure they're following security procedures outlined on their Web sites. If this is your first time shopping for a mortgage, you may prefer to work with a broker who can provide advice. You can still get the benefits of the Web by shopping online and trying to get a broker or bank to match the best rate you find online.