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Say you’re thinking about buying a home and you head online and find a great interest rate from a lender you’ve never heard of. Should you get a loan from them?
I define an online lender as someone who isn’t part of a local branch at all. Generally, clients experience delays with these types of lenders. When you’re buying a home and have specific dates that you want to hit to make sure you’re on track, these delays are a bad thing and can ruin a transaction.
Here’s my personal experience with lenders like this. My loan servicer on a rental property I owned contacted me and said they would get me a lower rate on a refinance. I talked to the lender I usually use, but he couldn’t match the rate. So I decided to use the online lender instead.
“My personal experience has not been good.”
This refinance should have taken around 45 days. However, we are now five months into the process and the loan still has not gone through. Fortunately, I’m not in any rush. However, I will never use this online lender again. I wouldn’t use an online lender in any situation if I were you.
If you have any questions about this topic or anything else relating to real estate, give me a call or send me an email. I would love to hear from you.