How Does Online Mortgage Work....... (approval, credit, bank, lender)

[Quaker15]

Once you are approved, do they wire the money? If so, to where?

[emm74]

You don't get the money until you actually close on a house - and the approval is always conditional, based on whether the house appraises for at least what you are buying it for, and depending on how long the process takes, they may also check your credit again before you close.

Once you are ready to finalize things, the money will be wired transferred to the title company, so they can disburse to the seller and/or seller's mortgage company.

[Quaker15]

Do you get pre-approval from one lender or multiple lenders?

When you get pre-approved (they will do a hard inquiry into your credit history) and 3 months later apply for a mortgage, would they do another hard inquiry?

[Quaker15]

How do you sign documents at closing if you're doing with an online lender?

[EngGirl]

I would stay away from online lenders. They are HORRIBLE to deal with and can do whatever they want whenever they want.

They do electronic signatures/ wet signatures with the fax/email option

[Quaker15]

Originally Posted by EngGirl

I would stay away from online lenders. They are HORRIBLE to deal with and can do whatever they want whenever they want.

They do electronic signatures/ wet signatures with the fax/email option

But they offer great deals and can save you thousands. Isn't the hassle worth $$$$$?

[Jeo123]

I found my mortgage online (National mortgage alliance). My lawyer told me that he was really nervous when he found out I was using an online company, but that they were actually better and faster at replying than most of the normal banks(especially the big ones like Chase, Wells Fargo, etc.) Online vs Brick and Mortar doesn't really matter because other than a small credit union, they're probably sending the information to a central regional bank for most of the stuff anyway and red tape can get in the way no matter who you use. Ultimately you hear horror stories from all sides.

As for how it works, Fax machines and Scanners. There weren't a lot of things I actually had to send to them with a signature though. The biggest thing is the contract at closing which the mortgage company doesn't even need to be there for. They just get the copies at the end.

[Quaker15]

Originally Posted by Jeo123

As for how it works, Fax machines and Scanners. There weren't a lot of things I actually had to send to them with a signature though. The biggest thing is the contract at closing which the mortgage company doesn't even need to be there for. They just get the copies at the end.

So, the lender were not at the closing?

[Jeo123]

Originally Posted by Quaker15

So, the lender were not at the closing?

Nope. Just me, my agent(probably wasn't necessary but he was my cousin), my lawyer, and the lawyer for the seller. The seller himself wasn't actually even there, he just signed his pieces ahead of time.

All that matters is the signatures. While not common, there's nothing stopping people from doing a closing without ever meeting in person.

[EngGirl]

Originally Posted by Quaker15

But they offer great deals and can save you thousands. Isn't the hassle worth $$$$$?

They also very well known on changing terms in last possible minutes, so their great deal are not so great. My co-worker had to find another lender because online lender changed things around dramatically.