Why You Should Not Use A Virtual Lender

Although the Internet is a wonderful tool to use during the home buying process with online resources for finding a new home and loan payment calculators, the Internet is NOT the place to find your mortgage.  Why you may ask are the virtual lenders not a great tool to use, even though they appear to be a direct lender and offer a hassle free lending process. Well the answer is simple. Most vertical lenders like; www.lendingtree.com and www.quickenloas.com are actual third party lead-generators.

As a lead generator, these sites entice the borrower to enter their personal information in return for a FREE mortgage pre-qualification. Once the lead generator as obtained the borrows personal data the information is then sold to a mortgage loan officer as a qualified lead.

Although obtaining a virtual lender is not recommend, online lending companies are great resources to find lending program classifications, housing market conditions and even provide great tools like a mortgage calculators that will help calculate payment schedules. Feel free to use virtual lenders as a resource, as long as you do not provide any personal information to them. For by doing so, one thing is certain, you will be receiving a whirl wind of calls from hungry and ambitions lenders.