It seems like everyone wants to loan you money. You are truly in the driver?s
seat by going online for your mortgage, refinance, and consolidation needs. But
how do you select a lender? How do you choose the right institution? How do you
know who to trust?
In this brief article, we will cover the 6 simple, practical, and essential
key points that we feel you should evaluate, when exploring online lenders: Feel
free to print this out, and use it as a free guide, while pointing and clicking
your way to success:
1. Privacy
2. Design
3. Popularity and Reputation
4. The Short Form
5. Communication
6. Points, Fees, Terms and Rates
1. Privacy:
In the modern world of ecommerce, it is essential that all respectable
businesses honor your right to privacy:
a) Check for a posted PRIVACY POLICY, prominently displayed on the
homepage of your prospective lenders site. Read it. Does it make sense to you?
Does it address how they will use your email address, your name, and your
private information?
b) Do they ask for things that may seem unreasonable at this stage of
the game? Be wary of requests for credit card numbers, social security numbers,
and similar information that may not be appropriate early on, for example, when
you are filling out the initial, short form. Naturally, your lender will need
that information down the road, but certainly not right out of the gate, when
initiating the first steps towards a relationship with you.
c) Is the lender a member of a posted, third party, privacy program?
For example, TRUSTe is one such independent company that will designate a member
site. You can look for their emblem, and similar third-party companies. This is
not a requirement for securing a good privacy policy; however, it is worth
noting.
2. Design:
The storefront of the online world, is the website. Therefore, it is
important that you examine the sites design, and evaluate it, much the same way
that you evaluate an office or store as you walk in the front door. Let me give
you a couple things to consider:
a) Is it a fast-loading site, or are you waiting forever?
b) Is it straightforward or elusive? Can you glean important, direct
information from the homepage, or does the site appear to coax you in
deeper?
c) Are you inundated with pop-ups, pop-unders, and other in-your-face
ads, or does the site seem helpful?
Remember, how the lender presents themselves online, is a reflection of their
business philosophy, and it tells you a lot about what kind of lender they may
be, after you sign on the bottom line.
3. Popularity and Reputation
I?m sure you learned in high-school, that popularity and reputation aren?t
everything. However, just like in the real world, it is important to gather
information on these two key points, and use them as a gauge.
a) By typing your lenders URL into http://www.alexa.com, you will be
able to ascertain how popular your lenders site is, because Alexa will tell you
how much visitor traffic the site gets. This isn?t a science, and popularity
isn?t everything. For example, an extremely popular website could treat you like
a number, and a relatively new lender or smaller institution, might not be
frequently visited, but still be a perfectly viable choice. So, review
popularity alongside rock-solid common sense.
b) Say, why not check out your prospective lenders reputation, by
going to the online Better Business Bureau, http://bbbonline.com and checking
the Reliability Report? This report will provide you with corporate information
(such as name, address, phone number), BBB membership information, whether or
not the lender is a participant of the ?BBB Online? program, along with a
complaint history, and each complaints final resolution.
c) These aren?t the only methods for gauging popularity and
reputation, of course. You can talk to people, go to chatrooms, conduct
search-engine research, etc. Again, popularity and reputation aren?t everything,
but keep them in mind while exploring lenders, both online and in the real world
of course.
4. The Short Form
The Short form is a term used to describe the basic application that you
initially fill out, when seeking a loan from a lender or institution.
a) Is it short indeed? Does it ask you for basic information, relevant
information, and is it presented in a simple and concise fashion, perhaps no
longer then 1 to 2 pages?
b) Is the short form organized and appropriate? Does it make sense, is
it simple to fill out, and is it easy to understand, and appropriate for an
initial application?
c) Consider this form as an introduction to your lenders style. If the
form is simple, concise, and easy to fill out, this may tell you a lot about the
lender. On the other hand, if the form is complex, difficult, and requesting a
little more information than your comfortable providing, this too might spell
out a word of caution, and provide important information about your prospective
lender.
5. Communication
Never underestimate the importance of communication. How the lender chooses
to communicate with you from the get go, might indicate choices the lender will
make later on in the process.
a) Does the lender have an ?about us? page, and do they provide
meaningful information about their business, such as how long they?ve been
around, where they are located, their phone number, their physical address, and
perhaps even their corporate structure? Or, are they a ghost in the machine,
providing little to no information about themselves?
b) You will ultimately be speaking with a live person on the phone.
How do they strike you? Are they pleasant, cordial, and polite? Are they
low-key, helpful, and respectful? Or, do you see signs of pushiness, or over
marketing?
c) Never make an immediate decision. Talk to 3 or 4 lenders, and then
give yourself a pause to reflect on who provided the best deal, and, who might
be the easiest and most appropriate to work with.
6. Points, Fees, Terms and Rates
a) Obtain several offers from competing lenders, and compare the nuts
and bolts.
b) Who offers you the best savings? Who seems just too low to believe?
Who is way too high to consider?
c) Check out the current interest rates, and make some market
comparisons. Our site has a free RateWatch updated frequently throughout the
day, or, you can easily find this information at any search engine or at other
reputable websites online.
We?ve enjoyed providing this information to you, and we wish you the best of
luck in your pursuits. Remember to always seek out good advice from those you
trust, and never turn your back on your own common sense.
