Buying a brand-new home can be an incredibly exciting process. You and your spouse or partner might have been saving up for years to move into a new house. The vast majority of individuals who are buying property will need to take out a mortgage that essentially pays for the residence for them. In turn, you make monthly payments towards the lender over the course of one or more decades. In the past, one of the only places you could get a mortgage was through a local bank. Thankfully, there a multitude of options available now to offer you lower and more convenient rates.
Different Alternatives to Bank Lending
If you’d rather avoid sitting in a bank manager’s office all afternoon, it’s time to look into alternatives. Some of the most popular alternatives to banks involve loan and credit card companies. There are even companies that are specific to offering mortgages online so that you can easily apply in the comfort of your own home. In some cases, it’s easier to be approved for a low-rate mortgage through these lenders and being able to apply on the internet saves both time and hassle.
Why Choose the Alternative?
In the past, you typically had to dress up, grab your spouse or partner and bring a folder-full of paperwork to your local bank. From there, you typically had to sit quietly in a manager’s office for one or more hours while they made out the mortgage application for you. In some cases, you’d be approved and for others, they might be denied. Regardless of the outcome, the entire process was frustrating, tedious and time-consuming. One benefit to choosing the alternative, like a loan company, is that you’ll be saving a lot of time. You can sit in the comfort of your home and apply using a computer or tablet device. Another key benefit to applying for a mortgage online is that you can look for online mortgage rate comparison websites. These allow you to essentially compare different mortgages and rates to find the one that’s right for you.
Application and Approval
Applying for your mortgage is quick, easy and relatively painless. First, you’ll want to compare different companies to see which rate and product is the best for you. You’ll then be given a term length and loan amount that you’ll be locked into once approved for the actual mortgage. You’ll need to answer some simple questions, like your name, job status, income and social security number. Once you’ve finished your application and sent it in, you can expect to be approved within a matter of just a few hours to several days depending on the company you’ve chosen.
Rates and Fees
Your loan rate is going to vary depending on the specific company you’ve chosen to obtain your account. However, in most cases, the better your FICO credit score and the more stable your financial history, the more likely you’ll be approved at a lower rate. You may also want to consider putting a down payment onto the property to further lower the amount you’ll eventually owe.