Are online mortgage quotes reliable?

eric1 · Posted: Sat Jan 17, 2009 7:14 pm Post subject:

In general it is best to be face to face with the borrower. However, it is often not possible when you originate loans in many states. In my case, I simply cannot drive to Florida or California to meet with a borrower. My demeanor on the phone is trusting and people feel comfortable with me. Still, it would be best to have a face to face meeting.

Now, to the original question regarding online mortgage quotes...
Typically, the information being asked on an online form is just basic info. (On my site, I try to ask as much as possible). As a result, the quote given may just be a ballpark based upon the limited information provided. You never really know the true scenario until you speak with the borrower, ask lots of questions and run the credit report to get the score and determine the ratios. There are many things that can impact the rate such as whether the borrower escrows the taxes, # of floors on a condo, credit score, etc.. In addition, rates can change significantly from the time of the quote until the borrower is ready to lock in a rate. In the past, I used to lock a rate for a borrower the moment I begin the process just in case rates increase before we are finished with all of the data collection. Then, if the rates drop a bit I would re-lock with another bank that has the lower rate. Just looking out for my customers. Now, banks are cracking down on that and are ending relationships with brokers who consistently lock loans that do not close.

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