If you’re thinking of working with an online lender, the pros and cons we’ll be listing today will help you discern whether such a partnership would truly be in your best interest.
Click here to use our free home evaluation tool.
Looking to buy a home? Click here to search all houses on the local MLS.
Using an online lender may seem like a convenient way to approach the financial aspects of a home purchase, but is it truly the most reliable option? Today, we’ll share a few of the top pros and cons of working with an online lender. Let’s start with a couple of benefits:
Pro No. 1: Working with an online lender is fast and sometimes cheaper.
Pro No. 2: Online lenders can pre-approve those with lower credit scores.
With those in mind, let’s move on to the negative aspects of working with an online lender:
Con No. 1: Some online “lenders” are actually scammers, meaning you could be at risk of fraud.
Con No. 2: Getting pre-approved with a lower score may lead to a sky-high interest rate.
Con No. 3: It’s easier to incorrectly fill out forms, and, therefore, accrue additional fees.
Con No. 4: Online lenders often offer lower quality service, leading to difficulties with closing.
“
There are many risks associated with hiring an online lender instead of a trusted, local professional.
”
Even by looking at just these few points, it’s clear to see that there are many risks associated with hiring an online lender instead of a trusted, local professional.
To achieve a quick and smooth transaction, you’ll typically be far better off handling your financial future in person.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.