Can I get a mortgage online?

The online lending environment has become increasingly sophisticated, thanks to Web sites like LendingTree.com, Interest.com, Eloan.com, and 4LowRates.com, all of which serve as sales channels for the originating lenders, who subsequently lend you the money and to whom you will make your mortgage payments. Most of the major lenders (Wells Fargo, Countrywide, etc.) also offer an online application process, homebuyer educational information, and other resources online.
Whether you’re using a traditional lender or an online marketplace, the loan process is fairly simple. I recently applied for and obtained a home equity line of credit from GMAC Financing. The process took about forty minutes: five minutes to fill out the online application; five minutes on the phone with a loan officer to guarantee that I was who I said I was; and about thirty minutes of gathering necessary paperwork, such as proof of homeowners insurance, and faxing it to GMAC. For a first mortgage, that means entering the required information and/or providing necessary documentation from the comfort of your own keyboard, then letting the online lender use that information to track down the right mortgage for you. After completing the application form, LendingTree.com guarantees that you will receive up to four ‘‘real’’ loan offers within hours. The company says it’s unique in that it spurs lenders to ‘‘compete’’ for your business, rather than your having to track down the lenders individually. Whether you choose to work with one of those lenders is up to you, but the process will give you a good idea of what type of mortgage product will be best for you.
With online security issues like credit card fraud and identity theft at the forefront of consumers’ minds right now, it would be wise to inquire about the online lending firm’s information protection and security processes before sending sensitive financial data (particularly social security numbers, driver’s license numbers, and other personal information) through cyberspace. Lending Tree, for example, has reserved a Web page for explaining its security process, information protection, and other privacy issues at www.lendingtree.com/stm/aboutlt/privacy/security.asp. Interest .com has a similar site at www.interest.com/privacystatement.html. Make sure your online lender has taken similar measures, and ask questions if you have any specific concerns about these issues.