How Do I Apply for a Home Loan Online - Safely?
© 2009, Brandon Cornett. All rights reserved.
Reader Question: I have heard it’s possible to apply for a home loan online these days. But I’m a bit of skeptical of doing this. Is it safe to submit a loan application online, and if so where should I start?
You’re not alone. Many people have fears about web-related identity theft, and it’s easy to understand why. But by choosing the right websites (and exercising some old-fashioned common sense), you can enjoy the convenience of applying online while minimizing the risks. Here are some tips to get you started.
The Home Loan Application Only Starts Online
The first thing you should realize is that it’s not possible to complete the entire application process online. In most cases, you would only submit an initial application or request through the lenders website. After that, you would have to follow up by faxing or mailing additional documentation — or by making an office visit to a local representative for that company.
This will make a lot more sense if I walk you through the steps. Let’s say I want to apply for a mortgage loan online to save myself some time and energy. So I visit a couple of lender websites and look for the “apply online” button in the mortgage area. I click the button, and I’m presented with a form that asks me for basic information about myself. The lender will use this information to (A) pull my credit report, (B) verify my identity, and (C) follow up with more information.
So I apply online for the home loan, and I provide all of the information requested. What next? Well, I can probably expect a phone call from a loan officer or broker at some point, or at least a follow-up email. This person will tell me if I am qualified for the type of loan I want, and what the next steps are. Typically, they will start requesting financial documents — tax documents for the last two years, bank statements with balances, pay stubs and employment verification, etc. I’ll probably have to hand deliver these items to a local office, or send it by certified mail.
After all of this document submission, I will eventually be presented with a home loan offer. This will include the maximum amount of the loan, the terms of the mortgage, the interest rate and related information. At this point, I can review the offer and determine whether or not it meets my needs.
This is the basic process that takes place when you apply for a home loan online, and the process varies from one lender to the next.
Practice Web Safety When You Apply Online
We’ve covered the basic application process above. Now let’s talk about Internet security for a moment. As part of the initial online process, you may be asked for sensitive information such as your name and Social Security Number. Anytime you are asked for your SSN, you need to pause for a “security check.” Here are some questions you should ask when you apply for a home loan online and transmit sensitive info:
- Am I on a website that I trust? Am I on the website of a well-known mortgage company or lending portal, or is it a company I’ve never heard of before? (Stick to the former and avoid the latter.)
- Is this a secure web page? Does it have security verification seals somewhere on the page? Does the web address begin with https://whatever.com? (Note the letter ’s’ in the address prefix. This indicates a secure page.)
If you cannot answer the questions above, then don’t transmit your private information through the site. All of the reputable mortgage companies have secure websites, as explained above. Stick with these kinds of sites when you apply online for mortgage quotes. If you’d like to save yourself some time and headache, you can use the trusted links offered on the Mortgage Quotes page of our website.
I hope this answers your question, and I wish you well in your financial pursuits. If you have other questions about applying for home loans, or anything related to the home buying process, be sure to send them to us. Good luck.
Related article: How does online mortgage approval work?