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Will Online Mortgage Lenders Replace Traditional Banks? - part 1

by Charles Essmeier

The Internet has changed our lives in more ways than we can imagine. The Web provides a convenient, fast, comprehensive source of information that we have very quickly embraced as our "go to" source for whatever it is we need in a pinch. The emergence of sites such as Amazon and eBay have made it very easy to buy merchandise and now, more than ever, financial products. One of the fastest growing businesses on the Web is that of companies that provide mortgages.

In the past, anyone who wanted to buy a home had to get in the car with a pile of financial documents and visit their local lender. In small towns, there may have been only one lender, and prospective buyers were at the mercy of that lender's terms, rates and conditions. That is no longer the case. The emergence of large lenders such as E-Loan or Ditech has made it possible for anyone with an Internet connection to obtain a mortgage or home equity loan at a competitive rate.

There are several reasons why Internet lenders are seeing increased business:

Convenience - The ease of shopping for a loan from the privacy of your own home is something that many buyers appreciate, especially if they have been driving all over the place looking at houses.

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Will Online Mortgage Lenders Replace Traditional Banks?


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