Online Mortgage Application

Online mortgage applications can save you money and speed up the mortgage application process. Unfortunately there are some potential drawbacks to this process that people may not be aware of.

You should never confuse a mortgage application with a mortgage quote. A mortgage application is an actual application for a mortgage.

A mortgage quote is simply a rough estimate of the cost of a mortgage that a mortgage provider gives you. The mortgage quote is what you get when you enter the amount of the mortgage you want, the interest you want and your area in the mortgage calculator on the website.

The mortgage application is when you put in your identification information and other data. This is then submitted to the mortgage lender so that they can actually issue you a mortgage. The mortgage application is a legally binding contract while the quote is simply a rough estimate.

Mortgage Applications and Your Credit Score 

Most people don’t realize that filing online mortgage applications can actually damage your credit score. This can occur because a mortgage provider usually runs a credit report when it receives a mortgage application. Most mortgage applications actually give the mortgage lender the right to do this.

Running a credit report can hurt your credit score because credit bureaus sometimes take points off your credit score when a credit report is run. If several applications are filed in your name and several credit reports are run your credit report will go down by several points.

This means that you should only file an online mortgage application when you are serious about getting a mortgage and known you will be approved. Don’t file applications if you know that you have bad credit and won’t get approved.

Why Online Mortgage Application is so Fast

An online mortgage is usually faster than a traditional mortgage application because it is sent directly to the lender. In a traditional mortgage application, a mortgage broker or bank application has to send in the application. In an online application the information you provide goes directly to the lender.

This means that you can get an online mortgage approved in just a few minutes or hours. That is why you should be careful when filling out these online applications. You could think you’re asking for a quote when you’re actually applying for a mortgage.

The way to avoid being issued a mortgage you don’t want is to only provide your name, your Social Security Number and other information when you actually want a mortgage. A legitimate mortgage provider will be able to give you a mortgage quote without knowing your name or Social Security number.

Identity Theft

There are some ways to reduce the possibility of identity theft when you are applying for an online mortgage. The best is to only give your name or identification numbers when you are actually applying for a mortgage. Remember no legitimate mortgage lender will ask for this information for just a quote.

Another thing to remember is never give this information in response to an e-mail. Especially one from a mortgage lender you’ve never heard. No legitimate mortgage lender will solicit applications via e-mail or have you apply via e-mail.