Access to the internet has made big changes to the way we buy homes. The ability to locate information online means you can learn about the home buying process, about applying for mortgages, about improving your credit rating, and many other aspects of home financing. These days, technology and the real estate world have advanced to the point where you can now apply for, and be approved for, a mortgage wholly online. No need to visit lenders, or even make phone calls – you can complete the entire transaction over the internet, if you wish.

That said, there are some important aspects of the process you should keep in mind when purchasing a mortgage online. There are similarities between the traditional and the online purchase methods that are important to remember, and there are some differences that mean you should take particular care when buying a mortgage online. Here are some tips and things to watch out for, to ensure your online mortgage purchase is a success.

Tip #1: Learn about the Mortgage Process

If you’re a first time home buyer, it’s very important to learn about the mortgage purchase process before you start looking at online mortgages. Even though the process of buying a mortgage isn’t exactly the same as the traditional method, there are enough similarities that you’ll benefit from reading all you can about the subject.

For example, you’ll need to obtain a copy of your credit report and check for errors and obsolete information—and repair bad credit if necessary—for an online mortgage purchase, just the same way as your would if you obtained your mortgage via the traditional method. Online mortgages go through an application and approval phase during which your credit and other financial information is checked, and you’ll have to go through closing at the end of the home buying process too.

Tip #2: Learn about the Online Mortgage Process

There are a few crucial differences between the online and traditional methods of obtaining a mortgage, so it’s worthwhile learning where those differences lie. Here’s a quick run-down of the steps to obtaining an online mortgage.

1. Check your credit report and repair if necessary
2. Evaluate your finances – income, debts, down payment.
3. Locate online mortgage lenders you’re interested in.
4. Provide the necessary preliminary information to get quotes.
5. Compare quotes, including interest rates, terms, fees, and other aspects.
6. Once you get a firm quote, have it confirmed in writing. Make sure you obtain a Good Faith Estimate and Annual Percentage Rate from the lender you choose.

Tip #3: Safeguard your Personal Information
When you make any online purchase, or give out any personal information over the internet, it’s vitally important that you make sure you’re not giving information to unscrupulous parties. Try to deal only with companies that you’ve actually heard of, rather than the ones that make promises about rock-bottom interest rates and no fees.

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