Online companies on bid loan

What a change from just a few years ago. Today you can fill out a single application online and have several lenders or mortgage brokers provide you with their best quote after reviewing your application. You may not get anything better than what you can get locally, but you still get four mortgage quotes without having to complete four different applications.

Before the advent of various ‘‘mortgage bidders’’ it was unheard of for a consumer to have multiple mortgage applications out at once. Not that it was illegal or anything, it was just if one lender found out that you applied somewhere else then the lender wouldn’t approve your loan unless you cancelled the other ones. Not so today. Now some Web sites actually encourage you to apply, not using several mortgage applications, but with just one application. After you complete the application, it is sent to a select group of lenders or brokers for their review. They’ll see how much money you make, what your current debt load is, and they’ll get your credit report along with your credit scores. After an evaluation, those lenders will make an
offering, which you can accept or reject. This is a relatively easy process for making multiple applications.

Sometimes however you don’t know who’s going to be bidding on your loan or who all will see it. You might see a list of approved lenders but you might come back with a quote from someone you’ve never heard of or who doesn’t have an office in your city. Some of these sites do less ‘‘bidding’’ and instead rely on selling your lead to other lenders or brokers who pay money to see your application. Such companies are nothing more than lead generators who get paid by mortgage companies. No harm there, but be prepared for an onslaught of e-mails and telephone calls advertising their super low, low rates.

The mortgage process has been made both easier and harder at the same time. As the loan approval process becomes more efficient, lenders and loan officers can find themselves in a more difficult situation when it comes to marketing. After all, a loan is a loan is a loan. Lenders have turned a mortgage into an off-the-shelf commodity, making it harder for them to differentiate themselves from other lenders. Most cases, anyway.