We all purchase things online. Books, clothing, music, movies, appliances and even new cars are purchased online by consumers today. People have become comfortable with the internet and its ability to provide solid information. The success of internet purchasing has made many people, probably including yourself, comfortable with purchasing over the web.
However, think about the concept of buying a used car, sight unseen, online.
Think about the idea of buying a house for your family to live in, exclusively online.
Now think about the idea of getting your mortgage online and you have an idea of the pitfalls you face.
There are many challenges associated with securing your mortgage online.
Products that allow for successful online shopping share some common characteristics:
• They are commodities, every seller has the same price!
• There is one price. Meaning there are few options or upgrades to impact pricing.
Products that are inherently disadvantaged to being purchased online also have common threads…
• Each one is individual. Cars are a great example of this.
• Nobody wants to buy without the right feel. Houses and cars are both signs of this.
• Everything seems negotiable.
• Many moving pieces make it impossible to compare apples to apples.
The stakes are higher when the consumer tries to purchase online…
• Buying the wrong used car can have you paying endlessly for repairs instead of driving.
• Buying the wrong home online is not likely to happen for most.
• But, what if you get the wrong loan online?
1. You could pay thousands more in “hidden costs at the closing table.
2. You may not get the right loan for your situation and get stuck paying tens of thousands more over the time you live in the home.
3. In a worst case scenario, you may not get an explanation of the terms of your loan and could potentially have terms in it that could lead to foreclosure down the road.
Using a professional mortgage consultant, like a Certified Mortgage Coach or Mortgage Planner can help you make the best decision about your mortgage and the future of your family’s finances.
One of the processes I provide for my client is called the Total Cost Analysis. This analysis requires a few pieces of information from you and the process takes less than 10 minutes. Once complete you will have the numbers for three or four options for mortgages in this market. These numbers allow you to make the mortgage decision thoroughly informed and allow you to be objective with the results.
John is an active Certified Mortgage Coach and Mortgage Planner. You may contact John at (510) 799-1400 or toll free (800) 259-3424 or email John@JPMortgageLoans.com
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