Purchasing a home used to be time-consuming and slow. But with the rise of online homebuying and digital closing, it’s streamlined and easy to do from virtually anywhere—your bed, the car, or even while you’re out looking at homes.
While some may seem weary of a no-contact process, we will explain why it may be preferred, the pros and cons, and how it’s safe to get a mortgage virtually.
Let’s start so you can take advantage of the opportunity to purchase your dream home.
Why online homebuying may be preferred
There are many reasons why buyers opt for digital homebuying. To start, online browsing and buying offers convenience, efficiency, and accessibility.
Online mortgage applications mean you can apply from anywhere with a secured internet connection—from your phone, laptop, or computer at your local library. You get the idea.
The convenience of digital homebuying eliminates the need to meet with a lender in person, which can present challenges if your lender has many clients and a busy schedule.
Virtual homebuying also offers options to a broader range of individuals including those who cannot easily schedule an appointment or those with limited mobility.
Not to mention, the virtual loan process is streamlined.
Rather than organizing all your paperwork and bringing it to an appointment or mailing it to your lender, you can upload all required documentation when you have it.
The ease of uploading all your documents also makes life easier if any unplanned issues are to arise during your application process.
On top of this, virtual homebuying can expedite the approval process so buyers may receive quicker responses, pre-approvals, and even faster closings in some cases.
Many online mortgage platforms also provide real-time updates on the status of your application. Borrowers can communicate with loan officers or customer support via email, chat, or phone, enhancing overall communication and responsiveness.
While online homebuying has beneficial options, it may not be for everyone.
Understanding the good and the not-so-good of virtual homebuying is helpful in deciding whether it’s the right choice for you.
Pros and cons of virtual homebuying
It’s essential to carefully weigh the pros and cons of applying for a mortgage online based on your specific needs, comfort level with technology, and financial situation.
If you have complex financial circumstances or prefer a more hands-on approach, working with a lender the traditional way may be a better fit.
Pros of obtaining a mortgage virtually
- Streamlined process
- Convenience
- Paperless & eco-friendly
- Accessibility
- Digital document uploading
- Real-time updates
- Personalized support
- Possibly quicker response times
Cons of obtaining a mortgage virtually
- Limited face-to-face interaction
- Complex financial situations
- Data security
- Concerns of misinformation or accuracy
Since we’ve already touched on some of the pros, let’s explain these cons to help you determine if online homebuying is the right choice for you.
Limited in-person interaction can be a downside for some as they fear they may not receive the same care online or are concerned about misunderstanding or incorrectly completing the application.
With the right lending team on your side, however, that isn’t the case.
Lenders such as The Federal Savings Bank, have the digital tools and communication platforms to provide their experience as you complete the online application.
They may even have additional educational resources, blogs, and mortgage calculators to help guide you through your application process.
Is it safe to get a mortgage virtually?
Before applying for a mortgage online, it’s essential to be well-informed and take several precautions to ensure a smooth and secure experience.
There are some key factors you should consider before beginning the process.
Research lenders
Ensure your lender is qualified to offer the mortgage you seek and is licensed to operate within your state. You can check reviews with the Better Business Bureau to ensure you’re applying with a verified lender.
Compare multiple lenders
While it may be tempting to apply with the first qualified mortgage lender you find, you should review and compare the interest rates and terms of multiple lenders to find the best mortgage product for your homebuying goals.
Understand the process
Before applying online, you should understand what documentation will be needed and be aware of the timeline and process of your mortgage. For example, if you’re building your home, your process may require more documentation and have a lengthier process than a conventional mortgage.
Check for security
When you’re giving out your confidential information online, there are a couple of things you can check to make sure the source you are providing is safe.
While using a trusted browser, check the website’s certificate and privacy policy to verify its authenticity and see how it manages personal data.
Read the terms and conditions
Read the terms and conditions regarding your interest rate, mortgage terms, fees, closing costs, and repayment options. If anything is unclear, ask your lender to clarify before you move forward.
Get everything in writing
It may seem silly if you’re homebuying online, but why must you get everything in writing? This is where a virtual mortgage process can come in handy. Easily save and store the loan agreement provided by your lender to your computer to review.
Digital processing tools help to alleviate any missing documentation or errors.
Don’t miss out on a great opportunity—purchase a home online
Purchase your dream home from the comfort of your couch with The Federal Savings Bank.
The Federal Savings Bank provides online applications and digital closings and is equipped with the tools and technology for a pain-free, streamlined process.
We’re dedicated to serving every community with an affordable, convenient, and safe way to online homebuying.
Fill out our online mortgage application and get the support you deserve.
Subject to credit approval. Terms and conditions may apply. Property insurance is required on all loans secured by property.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to you individual situation.
