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Buying Mortgages Online - Is it Safe?

Posted by  on Apr 16, 2009
 
Buying Mortgages Online — Is it Safe?

Because the process of buying a mortgage is so stressful and tedious, many people have turned to the easy access at their fingertips to guide them to the best lender. The problem comes when they hear stories of online scams and predators waiting to rob them of their money. If you’re looking for a safe mortgage lender online here are some helpful steps.

Why Buy a Mortgage Online in the First Place?

There are many rewards to purchasing a mortgage online. Because of the overall ease of the internet many turn to it as a place to begin, but can it really be an end all for the mortgage process? When weighing the rewards with the risks one must ask how can I benefit from searching online as opposed to using a real person? And in truth, the benefits are quite tempting:

· The best reward comes from the plethora of mortgage lenders online. Almost all mortgage lenders have websites, and very frequently there are websites devoted entirely to comparing there rates. The use of one of these websites can be very helpful.

· Another great feature of online mortgage shopping involves the competition for your business. Because there are so many lenders out there they need to point out their best features in order to win a customer over. This can be a great advantage overall.

· Online hours of operation are very flexible and allow you to work on the mortgage process from your home after you finish work or perhaps on the weekends. Non-online lenders only function during work hours which make it more difficult to thoroughly examine your options.

But What are the Risks?

The risk comes from the natural anonymity of the internet. Without a direct person to deal with there is greater chance you could be duped into fraud, loosing your credit card numbers and even having your identity stolen.

Because so much information is needed to take out a large loan, you are very vulnerable to online theft. Almost all scam artists are very good at what they do, but if you take the right steps you can ensure that you’re dealing with a verified and secure lender.

What Can I Do?


Look up information about the sight and about the lender. Every legitimate sight should have a contact us or about us page that will provide you with basic information, especially location and contact information. If a sight does not have either of these then it is a good practice to avoid them.

To help ensure a company is legitimate you can contact the Better Business Bureau. If a company has a clean track record and no negative reports have been filed against them recently then you can probably trust them as a secure source to obtain a mortgage.

Also send your information through a website that is secure and encrypted. A website should always have a small lock in the locked position in the bottom right hand corner that shows a user there in a safe-zone. Also make sure in the link that https:// appears, not just http://. The extra s at the end ensures the website is secure.

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