Tips for Safe Online Mortgage Shopping

One of the most important decisions you’ll face when purchasing a home is choosing the right lender.  Up until recently this was a fairly straightforward process and homebuyers typically relied on their banks for loans.  But nowadays, with online brokers and mortgage lenders competing for your attention and offering the best mortgage refinance rate available it can be a daunting task to make an informed decision. One of the most common fears for homeowners and prospective homebuyers is the question of who to trust?

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To help you get started and assist you in your evaluation of reliable online mortgage lenders, here are a few guidelines to follow.

First, consider if the lender has a trusted name and good reputation. On the Internet most people trust bigger names and expect better protection from companies like Amazon or EBay.  This can typically be applied when shopping for mortgage lenders but there are situations when smaller merchants have better deals and it can be difficult to pass them up.  Overall, a good rule of thumb is the classic warning, if it sounds too good to be true then it probably is.

Secondly, if you have any doubts about the company, check them out. Contact the website and ask to speak with someone who can verify the privacy policy.  If you get no reply or simply don’t like what you’re hearing then move along to one of the other numerous lenders.

The next thing to look out for before choosing a mortgage lender is some form of security verification.  If the URL changes to https or if a closed padlock or key is displayed, then you know the site has a secure server.  Some cites provide page encryption or use other forms of verification to ensure customers private information isn’t misused or transferred elsewhere.

Finally, always suspect the suspicious.  If you are filling in a contact sheet and the site asks for your date of birth and social security number then be careful.  This type of information is enough for major credit card fraud and driver’s license fraud.  If you feel suspicious about the site then contact them and simply ask to speak with someone about their privacy policy.  Fortunately, many sites don’t require a social security number on our forms and can provide you with quotes from lenders without giving away sensitive personal information.

So if you have doubts about a mortgage lender and are weary of releasing private information online, consider these four simple strategies to ensure you are having a safe experience.