Online Lenders versus face to face

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

I was wondering how many people plan to try an online lender next time they get a loan. Also, is there anyone who has ever received a loan from an online lender. I see the rates are sometimes very good, but when you are dealing with a large some of money is it better to meet face to face?

squirrel · Joined: 29 Jul 2004 Posts: 11 Location: Bucharest, Romania

In Romania, it is not a habit to get a loan through the Internet... we are very conservative towards loans, especially older people, who'd rather die than borrow anything most of the time!

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

Yes, I know. I also understand that it is difficult to just pay rent for an apartment, which is common in other places. Instead you have to buy the apartment, right?

squirrel · Joined: 29 Jul 2004 Posts: 11 Location: Bucharest, Romania

No, not really, David... there are many people who rent instead of buying, due to the increasing prices of houses... and the difficulty of getting loans!

chow · Posted: Sat Jan 22, 2005 12:35 pm Post subject:

I have done both types of origination, and I do some mobile closings with some large on line lenders. If you folks are closing loans over the internet or out of a call center for a large lender-do me and my mobile closing buddies a favor, or two.

1. Go over the final terms before we arrive at the home to close the loan.

2. As a Notary, closing people are NOT allowed to explain the terms, answer any questions about the fee's. I am allowed and expected to call the title company or the LO if I have to stop the closing for questions, or "readers." Please be available!!!

3. Tell your borrowers we are expected to come and go in 1/2 hour. If they want to read the entire 15 page mortgage, they have 3 days to do it, and rescind. if they start reading.....I leave and take the reading material with me!

I guess you can tell my "side job" :roll: can drive me nutty at month end?

I actually have title and closing companies I refuse to answer the phone for. They have horrible clients for Lenders and LO's. Bet you never knew Notaries black list companies did you? :evil:

1800LoansNow · Joined: 28 Jan 2005 Posts: 7

It is perfectly safe and sometimes easier to apply online. I would suggest though that the lender has a brick and mortar office. They should be open during normal hours, and have a staff to answer any questions.
I would not however deal with ANY company that you can't speak to immediatly and directly. we accept online applications at
[delinked - see Advertising Policy] , but after the initial internet meeting most of the work is done the conventional way, person to person or by phone. and our phones are answered 9-5 m-f [Phone # removed - feel free to add this info to your signature]

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

In a face to face situation, if they lie to you or try to mislead you, you can at least egg their car, or roll their lawn. :lol:

idratherbeonthebeach · Joined: 11 Jun 2005 Posts: 1

I have found that getting a contact initially from a lender or broker that has an online presence, means that you can ask them to phone you, email or post all kinds of information, before deciding whether a face to face is going to benfit you. I used australianhomeloans.com.au to send in my details and after having a discussion about rates and types, decided a face to face would be worth it.
A loan officer came out to the house (they had an office but it was more convenient for me) and did the forms.
So, I would suggest a bit of both.
If the lender or broker has an online presece, then at least they have the savvy to deal with all the institutions that like to deal that way.
I wouldn't take my advice though.................. I'm useless with money !

chow · Posted: Sat Jun 11, 2005 10:03 pm Post subject:

I agree, if a lender has a local office presence, that's a good thing! I'm part of a national group of people ( and no-you will not find that information here unless you ask. I've only given it to the other moderators)

We in the lending business, both Broker's and Banker's have had to become really saavy about how we do business. I've worked as a Underwriter, I have bought loans from banks on the secondary market when they "brokered" them. I startered as a "Mortgage Banker" and had the bank yank my line out when I had loans to fund.

(Kids, that is 2 boogie's short of the crisis of the Asian flu in 1998. I fyou don't understand that- just bend over, and get a large tube of KY jelly, and then ask Who's gonna fund what, and how, and how can I stand up, jump, re arrange a bank account, and keep my customer's happy? The other most recent issue would be 09/11/01 The FED shut down, the markets' closed down, and no one honored a lock, we could not fund anything. We couldn't lock anything. We all just got put on hold.)

I've done everything from knocking on your door to ask for a payment, to tracking you down to find you and assist the lender to suing you-if you moved your home, or it was never really there-to Just settling for, I guess I'll take the "easy way out"????

If a crook can make this much money on loans, selling snowballs in hell, Why can't I- stay in one place and make decent money, giving decent advice, and selling the money?

Well, I was mobile with a printer and a scanner as soon as I could be. I'll just remind you not to shop yourselt out of a deal, if you're really a "cookie cutter" credit customer! I love mobile deals, unless I have to fight a tornado, or a snowstorm-then email works just fine for me!

chow · Posted: Sat Jun 11, 2005 10:11 pm Post subject:

wrong thread! :oops:

lenderama · Joined: 08 Aug 2005 Posts: 22

One of the biggest advantage to a broker over a e-loan type company is that they are local. My dad tried using an internet company and they were trying to require a termite inspection... in Colorado :roll: Every State is a little different and I think that local experiance can't be matched by saving maybee a hundred bucks on the loan.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

It would depend on the type of loan, wouldn't it? I have yet to do a loan in CO (Actually doing my first one there next month :) ) but I have yet to have an FHA loan for example that doesn't require a termite inspection.

lenderama · Joined: 08 Aug 2005 Posts: 22

It was a FNMA loan. No termite inspections would be ordered for FNMA loan here in Colorado. It's the same for most North-West states. The point is that every state is different. Some fund at the table, some in escrow... National companies don't understand local nuance. That's where a broker has the advantage.

chow · Posted: Tue Aug 09, 2005 1:33 pm Post subject:

There may have been something in the appraisal that made the Underwriter require the Termite. Read the appraisal, and the VC sheets. Remember, it may not be required by your state for FNMA, but something told that UW to ask for one. Appraisers are not home inspectors, but if they see something-they are bound by USAP, to state the issue on the VC sheets in your appraisal. If there is nothing noted in the appraisal, and your state doesn't require termite on FNMA transactions-then call the UW and question it. If you don't get any response there-Call the UW manager, and be humble and ask them to look at the file, and explain to you-why one is needed.

JMHO, if this is a purchase-I would always suggest one, along with a home inspection. (maybe they had a home inspection and that tripped the termite issue too?)

Face it, if your in the transaction and something comes up later-like a swarm of termites. (yes, had it happen and had to fire the LO for NOT disclosing that only the garage was treated-and found colusion between the bug company, and realtor.) If you're the UW, the LO the Owner of the broker company, the lender, the bug company....you could face a claim for waiving the inspections.