How are some homebuyers are using Online Mortgage Pre Approval Marketplaces to get 10% more purchasing power for free?
Under current market conditions, of rising home prices and higher mortgage rates, most homebuyers are looking for ways to decrease the cost of homeownership.
Traditional methods of obtaining a mortgage, like calling a bank or lender, may not always be the best option. Mortgage shopping is overwhelming and time-consuming; therefore, many homebuyers may not be aware of all the lowest rate and fee loan options available to them.
More importantly, most homebuyers do not understand how much money they loose when they fail to get the best mortgage loan in our market.
What is an Online Mortgage Pre Approval Marketplace?
One solution to this mortgage shopping problem is using an online mortgage pre-approval marketplace. These marketplaces are multi-lender loan pre-approval websites that match a homebuyer’s basic profile to the lowest rate and fee mortgage loan that they qualify for.
By using automation, these systems can typically return a 1% lower interest rate mortgage loan compared to most traditional lenders and banks. This can result in a cost/savings difference of approximately 10% of the purchase price of a home, which can be a significant amount.
The problems with traditional mortgage pre approval and loan shopping?
Real Estate Agent’s Preferred Mortgage Lenders:
Most often, real estate agents will recommend their preferred lenders. In most cases, these lenders may not always offer the best lending terms in the market.
More often, homebuyers will loose 10% of their purchasing power when working with a real estate agents recommended lenders.
Do it yourself: Shopping for an online mortgage pre approval:
Homebuyers who decide to search for the best terms on a mortgage pre-approval on their own may quickly realize that it is like looking for a needle in a haystack.
First, there are many teaser-rate offers that most do not qualify for. Second, the amount of time needed to call each mortgage lender and provide all the information is beyond acceptable.
How can an Online Mortgage Pre Approval Marketplace help?
EquiFund’s online mortgage pre-approval marketplace solves these problems by automating the underwriting guidelines for multiple national lenders and lenders in the marketplace.
Within three minutes, a homebuyer can identify the lowest rate and fee mortgage loan and see all rate information, closing costs, and loan terms.
These marketplaces do not require a credit pull, and their objective is to give homebuyers the opportunity to see how low the best rate and fee loan is matched to their basic profile.
Once a homebuyer sees these loan offers, they will be more likely to initiate a final full loan pre-approval.
Will these Online Mortgage Marketplaces close and fund loans?
Yes. These online mortgage pre-approval marketplaces are contracted with multiple lenders and will originate, process, and close a loan request within 30 days or less with the lender that offers the lowest interest rate.
This not only saves homebuyers time and money, but it also improves their financial security. With the home being one of the largest investments and debts that a person holds, it is important to not only protect but improve their financial security by finding the best mortgage options available.
Conclusion to getting an online mortgage pre approval:
In conclusion, online mortgage pre-approval marketplaces are a valuable resource for homebuyers to compare and find the best mortgage options from multiple lenders.
They use automation to return lower interest rate loans than traditional methods, potentially resulting in a cost/savings difference of 10% of the purchase price of the home.
These online marketplaces do not require a credit pull, are easy to use and provide a streamlined process to originate, process, and close a loan request with the lender that offers the lowest interest rate.
It’s worth considering as an option for homebuyers looking to decrease the cost of homeownership and improve their financial security.