If you’re considering using the Internet to find a new mortgage loan, the best advice you can get is to read before you click. There are a number of situations where using an online lender will get the best deal; however, it is important to read the terms and conditions before providing your information.
Many of the so called “mortgage” sites you visit on the Internet receive a computerized loan origination fee for collecting your contact information and financial details. There’s nothing wrong with sites that generate mortgage leads; however, the problem comes with lenders that pass this fee to you on your Good Faith Estimate. Lending Tree is notorious for the Computerized Loan origination fees that come out of your pocket. Take a look at the Licenses and Disclosure statement found on their website and you’ll see that they can receive as much as $1,300 for selling your information. This fee then appears on your Good Faith Estimate and you are obligated to pay it.
Would you be happy paying a mortgage site $1,300 just for filling out contact forms requesting information? This is why you must read before you click. No one likes to read the user agreements and disclosure statements found on these websites; however, if you read before clicking you can save yourself a lot of money and frustration. You can learn more about refinancing your mortgage while avoiding costly mistakes with our free video tutorial.