I’ve offered multiple posts about the importance of being familiar with frequently-used mortgage terminology prior to entering your mortgage processing.
With all the real estate and financing terminology or slang that can pop-up during a real estate transaction, it’s just best to be prepared and educated about what you’ll be hearing. It’s for your own benefit.
Over the last few years, I have found that one piece of terminology, used frequently, is incorrectly utilized by both professionals and clients alike. That term? “Internet lender”.
Maybe as a mortgage lender myself, I’ve gotten a bit sensitive about HOW this terminology is loosely and incorrectly used. As too often the perception of an “internet lender” is negative in connotation.
I’ve personally had many concerns and stories related to me regarding “internet lenders”, often times as I’m assisting someone after they’ve had a bad experience using an “internet lender’s” services.
I see the same attitude expressed in many referral partner’s blog posts too. Not exactly the impression I want my clients, referral partners, or potential clients to have of MY services. I don’t want any confusion.
Lately, it seems I’m again running into a real rash of articles and blog posts regarding “internet lenders”. And as in the past, the concerns are running in the negative vein. And once again, the manner in which the term “internet lender” has been used within many of these articles and posts has left vast opportunity for the confusion I hope to avoid, in their wake.
I’m going to try to clarify and rectify that here …
There are true “internet lenders”. Those companies conduct business and exist on the internet alone. They have no brick-and-mortar building(s). Their addresses are … http://www.something.com.
We must NOTconfuse this type of mortgage lender with a mortgage originator that facilitates their business utilizing the advantages of the internet. IMO, they are two totally different animals with differences that are quite important and distinguishable.
When the decision must be made as to which type of mortgage lender you hope to work with within your transaction and financing …
I believe a client must recognize at which level of involvement they wish to be engaged in their transaction. How much time can they personally offer to transacting their loan?
I believe that a client must also be honest with themselves about their needs and the level with which they are educated about the mortgage process. They must be aware of their expectations too. What level of service is desired?? As I would argue the results of their choice (“internet lender” or mortgage lender facilitating business via the internet) … will be quite different regarding these issues.
Technology, and its involvement within the servicing of a mortgage, can be a strong and loyal friend … or a foe. Reduce the range or capability of communication, or limit the hours or situations in which you can communicate, and I believe you run a much higher risk for issues to arise within your mortgage processing or to miss your closing date.
Placing your trust in a mortgage originator, that puts an arsenal of technology and communication methods to work on your behalf … and responds to your needs and requests for communication in a timely fashion … will increase your chances of successfully completing your home buying transaction on time, per your real estate contract.
Before making your decision … consider this: Will this lender be accessible when I need them? How accountable can I reliably hold them?
And I might as well confront this issue too. Some will say that your mortgage lender or originator simply MUST be local or capable of meeting you face-to-face. For some clients, I agree. That scenario works best.
But for a growing number of myclients, or for new clients contacting me for mortgage service, this is not a comfort level they need or seek. This is especially true of the younger generation. They are happy, as long as I am accessible via technology when they need me … as long as I return calls, emails, texts, etc. in a timely fashion. They actually prefer to forego the traditional face-to-face meetings once required. Technology simply works better and is much more convenient to their lifestyle.
I will add and acknowledge …
There is one time during a transaction that I think having your mortgage lender physically by your side, is helpful and preferable. That is during your Closing. This is especially true, should your transaction be a more complicated or fragile one.
I am physically in attendance at as many of my Closings as possible. But especially with the more challenging transactions. I personally feel better during those situations. It’s proven valuable to my clients (and referral partners) many many times.
But to reiterate … it is very important that clients know and understand the differences between the two definitions and terms mentioned here. “Internet lender” VS “a mortgage lender that facilitates their business via/utilizing the internet”. It’s also important to know and understand the levels of service and personal accountability that may accompany each, as well. As before, JMO.
As a mortgage lender that utilizes the internet and facilitates the level of service I provide my clients through its many benefits, I hope the confusion does not continue.
Should you have questions, please do not hesitate to ask them or contact me …