“Confidence” and “competence” are not the same. Just because you can click a button to get a mortgage doesn’t mean it’s a good deal. You can be completely confident in absolute incompetence. If you use an online company for your closing and your loan, chances are you’ll pay an astronomical amount for lack of ground control when it comes closing cost and other concerns.
Online mortgage companies offer one-stop shopping, in that you get your mortgage loan and your closing from the same source. However, one-stop shopping isn’t so convenient when it comes with an extra pricey payload.
First of all there’s closing cost. Real Estate is a location-specific commodity, and different regions have different customs regarding fees charged at closing. Online lenders aren’t familiar with local customs. They may tag on a fee standard for their area which does not apply for the location in which you’re buying. However, a local closing company will only apply fees specific to the area—you won’t have superfluous expenses. Also, online lenders may add fees for working long distance, fees that would not be charged when using a local title company.
And secondly, there’s oversight cost. A title company owned by the lender and run by the lender does not have the oversight that an independent, locally owned title company does. “Houston, we have a problem.” Lack of oversight can be costly!! A lender-owned title company is only really concerned about the deals that they get audited on. A local title company is concerned about EVERY deal.
You don’t have to be a rocket scientist or be in a rock band to get a good mortgage. If you pay, you choose—you don’t have to use the lender’s title company. Even with an online lender, you can choose a local title company for a smart financial decision.
Mortgage competently with a local title company.