Many People Make Money With Online Mortgage
The mortgage business is lucrative. It’s also competitive. A lot of websites try to get some of the mortgage pie. You can get online mortgage quotes from 4 kinds of mortgage web sites:
1. Mortgage lenders
2. Mortgage brokers
3. Mortgage lead generation companies
4. Affiliate marketers
In the first and second groups you have companies that do business on and off-line and companies that do business only online. They either give out mortgage loans or broker them. The third and fourth groups are made up of companies and individuals who collect information from likely mortgage seekerspeople who are looking for a mortgage and sell them – group four sells to group three, group three sells to groups one and two.
The existence of these four groups means that you’re going to come across online mortgage quotes that seem to serve different purposes. In practice, there’s no difference: everybody publishes the best rates they have available. The reason: all online mortgage quotes serve the same purpose: reel you in.
Direct lenders have the fewest choices. They can only advertise their lowest rates. Their lowest rates might not be low at all. Mortgage brokers work with several to many direct lenders and mortgage wholesellers. They, therefore, can advertise a very low rate for a progrm for which you might not qualify in a million years.
Lead generation companies behave like mortgage brokerages. Except that when they get your information they don’t try to get you to come in, provide additional information so they can qualify you for a mortgage. Instead, they sell your information to several lenders. It will be one or more of those lenders that will contact you, try to either get you to meet with them or provide them additional information online, so they could qualify you for a mortgage. The one with the best rate, the one quoted, might not be among those who contact you.
Affiliate marketers get a few dollars every time they send your information to a lead-generation company. They don’t even look at your information.
So, here’s the way to think about online mortgage rate quotes: They’re bait. That means you don’t fully expect to get the advertised rate unless you have perfect everything. Still, often the one with the lowest advertised rate can get you the lowest mortgage. But not always. So you contact a bunch of them.
You really know what mortgage rate you qualify for only after they run credit check. If they don’t run credit check, you may be getting a far rosier mortgage quote than you really qualify for.
If either your credit or employment history are not perfect or you don’t have a large down payment, go wtih mortgage brokers.
1. They have access to more mortgage programs than do direct lenders (whether banks or investors doesn’t matter).
2. They get mortgages at wholesale rates. Your bank, or other direct lender, will be selling them to you at retail price. Sometimes, mortgage brokers can get you wholesale rates from the very bank you bank with. If you can get a mortgage at 6% with your bank, a mortgage broker can get you a loan for a bit less than 6%. From your very own bank. A .15% less, for instance, adds up to real money real soon.
So, don’t let the number of online mortgage quotes sources bother you. Shop around, and understand that the online mortgage quotes are bait and that mortgage brokers are often the best source. You still have to sort through them to get a good one.
Finding yourself Googling “Chicago mortgage,” “Chicago mortgage rates” and such things? To get the best mortgage, contact several mortgage borkers or lenders, at about the same time, give them the same information. If you contact some on Monday morning, some on Monday evening, some on Tuesdays, you’re not comparing apples to apples.
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