Are online mortgage quotes reliable?

Hi Kaly,

Welcome to the forum.

Online quotes are helpful. It will save you time and energy. You can easily and quickly get access to the mortgage but surely you will have to have good credit and employment history.

Best of luck,
Larry

Frankly speaking Kaly, I don't think online quotes are the final words! That's because when you meet the lender/broker in person, you get the chance to speak about your finances and credit in detail. Trust me, it's very important for the lender to understand your financial needs and how much you can afford based on what your other liabilities are. So, it's perfectly fine if you apply for quotes online and then receive them only after you have a discussion with them regarding your finances and credit.

Having said the above, I don't criticize sites which are offering quotes online, those may simply be an estimate and in most cases, the final quote or rate offered doesn't even come closer to what the borrowers gets after the underwriter looks through the paperwork you've submitted. So, I believe quotes offered on the internet aren't that much authentic.

The best as I feel is to apply for quotes online and then have an open talk with the lender and discuss possible combinations and credit problems if any. In case the borrower has credit problems, he'll be able to explain the possible cause and the lenders can then fix up a plan with which he'll be able to repair his credit.

Thanks,

Brain Dela Cruz

Online quotes are only as reliable as the company / loan officer providing them. And most of online quotes are pretty generic (meaning they dont take into account your partcular situation and you end up getting the best case scenario). Also alot of things depend on the completenes and the integrity of information you provide.
There is no way for any loan officer or institution to qualify you without looking at your financial info, job history, credit report, ect. The more information we have the better educated decision we can make.
Finally untill the rate is locked any quote you get can change due to the market conditions.

I absolutely agree with Evo on this topic.

An online quote is blind to all the pertinent details in accessing your information as a borrower. Therefore I feel an online quote is not reliable. So I concur with Eugene.

i agree with the opinions expressed here already. i like what eugene said about the quote being only as reliable as the quoter - so very true.

as for qualifying - you may indeed be able to rely on an online quote, but there can be no guarantee until your credit and your income/asset structure have been reviewed. furthermore, as noted by eugene, rates are simply quotes until such time as they are locked; and they can change quite often - as we have seen in the recent past. there are times when rates will change a couple times in one day alone.

rate swings are like mood swings - regrettably and completely unpredictable.

This is a somewhat complicated question.

There are many factors, many of teh important ones have already been discussed by the other competent posters here.

Something that I would add to the discussion is that an online quote should considered no more binding than a gentleman's handshake. Until someone puts it in writing and is willing to sign their name by it... then it should be taken as no more than sales/marketing in my opinion.

I have lost clients in the past, as I'm sure others here can attest to, once I have taken a full application and provided a complete good faith estimate and 1003 to the client. They proceed to take that quote to every Tom, Dick, and Harry on the block who will proceed to offer them a lower "quote" than what I provided them. I am always amazed at the same day quote given solely based upong my complete GFE. They don't review income documentation or credit. THey are generally provided the credit scores and my quote. Somehow it never fails they manage to beat me out even if it's by .125%. The client of course feels they are getting a better deal and go elswhere.

I ALWAYS follow up regardless to find out the results of their "better" deals. Many times the rates or terms are changed once a full application is taken. Sometimes not until the closing table. I am actually able to win back many of the clients once they see they have been baited and switched. Sometimes they go down to the wire and refuse to sign at closing because they know they had previously been approved for better terms.

What I'd like for people to take away from my story is that you can't count on anything unless you provide as much information as possible and get something in writing. If you provide minimal details and want a quick quote.. be prepared for a fully responce.

My company does take information online for mortgage quotes. However we follow up personally with every single client and don't provide any quote until at minimum credit and income have been examined. Then they receive a quote in writing as I've said before. This has been to our detrimant at times, but in this business honesty and full disclosure are the best ingredients for long term success. We may lose a deal or two here and there to less scrupulous competition, but we know we are here for the long run.

Certainly online quotes are a good place to start to get an uninformed idea of the range of rates available -- however, they are simply a lead source for the most part. Many lead originators source those quote engines.

The best comparison any good loan originator can give you is: Online quotes are as effective as Online dental advice -- if you need oral surgery, go to a professional.

Online quotes are only as good as the information provided in order to receive them. Just like going to a dentist, auto repair mechanic, or even a computer store - some people will likely need a full review of your situation in order to receive an accurate quote.

Depending on the situation, some people will need to just provide limited information in order to receive their mortgage quote, some people will need to provide more information, even to the point of providing paycheck stubs, have their credit run, etc., in order to receive their mortgage quote. For example, someone who has so-so credit scores but doesn't know what exactly is on their credit would be hard to quote a pinpoint accurate interest rate for. Someone who makes a majority of their income from non-salaried wages but doesn't know the exact figures would require their income be looked over to make sure they would indeed qualify.

Interest rate & terms of the mortgage are an important aspect to consider, but are not the whole picture. You should also take into consideration the individuals expertise, experience, and work ethics as well. Do you want to work with someone who has been able to manuever their way through surprise issues which comes up during the loan process, or someone who is trying to learn how to do loans by doing your loan? Are you looking for a specific "niche" loan program that isn't widely offered? Do you require being able to work with someone after normal work hours? Do you want to work with someone local? These are just a few questions that one should ask themselves.

There's been a lot of good advice. It's always a good idea to work with a competitive local loan officer and see how their rates compare against the online quotes. Make sure you are quoted rates on the same day. Be sure the information you give to the parties offering the quotes is accurate and consistent.

Best regards,

consumers expect a mortgage website to deliver the level of satisfaction they get from lets' say, borders books or amazon. online loan quotes should read "the person who chose this product, also looked at: the fha arm; the fha eem (energy efficient mortgage) and the home equity loan". mortgage interest rates are volatile and this market is strange it is always best to speak to atleast 3 different mortgage sources and get three different quotes when shopping for a loan. whether it be online or joe from abc mortgage down the street, "are online mortgage quotes reliable"? that depends on the source, although the vast majority of online quote engines offer you 3 to 5 quotes it depends on what you are looking for. do you want a lower rate or a better loan with benefits, do you want a arm or fixed rate? do you want coke or coke zero? “the goal of reliable online mortgage quote systems will have been achieved when no mortgage rates have changed and no consumer has experienced a bad customer service and does not know anyone personally who has ever been given a bad loan.” the best place to get a mortgage quote is the people you have discussed your concern with right here at this forum, just request a personal consultation and one of the experts here will lead you in the right direction.

good luck in the future, come back soon!
robert summers

well said, Robert.

this site has some terrific individuals posting, and i suspect a person inquiring of any of us would be receiving the utmost of service in any case.

I believe it's better to talk to lenders face-to-face and discuss your financial situation and loan options rather than getting quotes online. I'm doubtful as to how many times a day does the rate quote shown online change.

Does the online quote change with respect to changes in the rate, say if rates are changing couple of times a day? If it doesn't then how does one get a close-to-accurate rate? That's the reason I believe that a face-to-face conversation is a much better way to proceed for a loan. Otherwise, how does one repair his credit after receiving online quotes? Can a company offering online quote repair a person's credit as effectively as a lender can help him do after a one-to-one consultation? I don't think so.

Regards,

Jessica

I agree with some of the posters above. It's better to fix an appointment with the lender/loan officer, talk to him about your finances and if you've had credit problems which is a major concern these days especially ever since the credit crisis. So, how would a lender give you the exact quote without knowing what your actual credit situation is. Moreover, don't you think it's better to explain things through a face to face meeting rather than just get quotes online? anyway, good luck with whatever decision you take.

In general it is best to be face to face with the borrower. However, it is often not possible when you originate loans in many states. In my case, I simply cannot drive to Florida or California to meet with a borrower. My demeanor on the phone is trusting and people feel comfortable with me. Still, it would be best to have a face to face meeting.

Now, to the original question regarding online mortgage quotes...
Typically, the information being asked on an online form is just basic info. (On my site, I try to ask as much as possible). As a result, the quote given may just be a ballpark based upon the limited information provided. You never really know the true scenario until you speak with the borrower, ask lots of questions and run the credit report to get the score and determine the ratios. There are many things that can impact the rate such as whether the borrower escrows the taxes, # of floors on a condo, credit score, etc.. In addition, rates can change significantly from the time of the quote until the borrower is ready to lock in a rate. In the past, I used to lock a rate for a borrower the moment I begin the process just in case rates increase before we are finished with all of the data collection. Then, if the rates drop a bit I would re-lock with another bank that has the lower rate. Just looking out for my customers. Now, banks are cracking down on that and are ending relationships with brokers who consistently lock loans that do not close.