Getting Mortgage Refinance Quotes Online

© 2009, Brandon Cornett. All rights reserved.

 

The Internet has changed many aspects of the refinance process. One of the most obvious changes is the ease with which you can get mortgage refinance quotes from lenders. But there are right and wrong ways to go about this process. In this article, you’ll learn everything you need to know about getting free quotes from online lenders.

Instant Refinance Quotes Online – 7 Things You Should Know

Sure, you can start getting free quotes without doing any research. But if you want to do things right, you need to learn a little about how the quoting process works. Here are some key things you should know about applying for a refinance loan online.

1. It’s a big time saver.

Getting Internet quotes is a great way to save time and energy. It lets you narrow the field of lenders to the ones that are (A) willing to work with you and (B) able to offer a decent rate. So you can quickly zero in on the best lender for your needs.

2. You should practice Internet security.

Practice Internet security when getting mortgage refinance quotes online. Whenever you fill out a form that asks for personal information, make sure it’s a secure website. One way to do this is by looking at the web address. It should start with “https://www…” if it’s a secure web page. The “www” part is optional, but the letter ’s’ is important. If the web address only starts with “http://” (without the letter ’s’), then it’s not a secure page. Keep this in mind when you get online refinance quotes from lenders.

3. Be prepared for the follow-up process.

In truth, the application process only starts online. After you get the initial quote from a lender, you’ll be asked to submit additional documents. This usually includes W-2 statements for the past two years, bank statements, income verification, etc. I would not send this stuff through the mail. I recommend submitting these documents in person, through the lender’s local office.

4. Your credit score will survive.

Multiple quotes probably won’t affect your credit score very much, if at all. So feel free to shop around and get refinance quotes from several different lenders. The people who create the credit-scoring models (such as the FICO score) realize that people shop for rates when refinancing their homes. So they build a certain amount of “intelligence” into their scoring models to allow for this.

5. Do some research first.

Do your research first before applying for refinance quotes online. For starters, you should find out what your credit score is, and make improvements if necessary. If you want to get the lowest possible rates when refinancing, you’ll probably need a score of 760 or above. Research this early, because it takes time to improve a credit score.

I hope this article has given you a better understanding of mortgage refinance quotes and how they work. Remember, the key tips from this lesson. Using the Internet can save you a lot of time and energy. You can apply with different lenders in a short period of time without lowering your credit score much. You need to practice Internet safety / security when getting quotes online. It’s a good idea to check your credit score before starting this process, and to gather your financial documents.