Why you should Shop for a Mortgage on the Web.

Net Shopping.
You can buy books, music, TVs, groceries, and just about everything else on the Web these days without leaving the comfort of your home, office, the nearest wi-fi or other hot spot. Why can't you do the same for your mortgage?

Almost every lender or mortgage broker has a web site but people continue to go to the bank or the mortgage company's office where they have to stand in line behind people cashing checks or the bag of pennies. Following are some steps that you can take to avoid the inconvenience of driving to the bank.

Consider more than one program(Term).
It is not because you have a 30 years fixed mortgage that you cannot look at the twenty five, twenty, fifteen and why not the ten years fixed program. you may even check the ten years while you are at it.

Identify the precise mortgage you want.
Do not confuse the term and what is included in the mortgage. Here you decide if you want your payment to be interest only, principal and interest, principal, interest, taxes and insurance. You will pay mortgage insurance if your loan is greater than eighty percent of your property's appraised value. It may cost you extra if you decide to keep the taxes and insurance out of your payment so you can pay for them yourself when they come due.

Do some research.
Asking for the best mortgage rate does not cut it, instead learn some business terms specific to this field. For instance ask for a fifteen years mortgage for an owner occupied single family, condo, depending on your property. Indicate that you know your credit scores, that you are going full documents and if you are satisfied with the quote that will be e-mailed to you, you may lose within thirty days or sooner. You want your taxes and insurance to be included or not, how much will the later option cost you. Can that fee (usually 1/4%) can be waived. Configure your needs as you see fit.

Conduct your business by e-mail.
It gives you a paper trail. It also gives you control because you can take the time to review the information you receive, analyze it and respond when you are ready. It removes the pressure that you may feel seating in front of someone who speaks a language you barely understand, and like most people, you accept the terms so you don't look "dumb". You can even walk away from an offer you do not like without being rude. It is true that rates change daily, but it is also true that mortgage origination and the whole lending industry are down.

Be firm in your negotiation.
The only reason you should go to the bank or title company is to sign your loan documents, period. Better yet, for a small fee, you can request to close in your own home, even after "business hours"! Once the terms have been agreed to, the lender can e-mail, mail or fax you all the loan documents at home. You gather all the file requirements, read the file, sign it if you agree and return the package. The Appraiser will come to your home by appointment and you will pay C.O.D.
While working for a national lender, I have closed loans across the country with borrowers I have never met!

This is just one way to use the information super highway to your advantage. If you want to see how this can work for you or your friends, e-mail me at jpalla@panamlending.com , I will direct you to www.mortgageapp.blogspot.com to get started and you will see how this approach works.