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2. Privacy Policy:
You will likely be sharing some personal
information, in exchange for loan offers. You
shouldn’t be so concerned about this that it
limits your ability to reach out to possible
lenders. However, use your common sense.
a) Does the website post its privacy policy? If
so, take a quick peak at it.
b) Does it seem to make sense, and is it
reasonable?
Virtually all trustworthy online businesses now
have posted privacy policies to both assure you
of their intent, and to comply with current laws
and regulations.
3. About Us:
Does the lender post an “about us” page?
a) If not, this could be a red flag. In other
words, the lender should take pride in its
history, its vision, and its mission statement.
An “about us” page is an opportunity for
your lender to tell you a little bit about
themselves. If you don’t see it, then what are
they hiding?
b) On the other hand, if you do see an “about
us” page, go check it out. How long have they
been in business? Where are they located? Do
they post a phone number, and do they provide
contact information? What are their policies and
philosophies?
Reading the “about us” page can tell you
tremendous information about the lender.
4. Popularity:
Take your lender’s website address, and plug
it into Alexa.Com. Alexa is a tool, created by
the folks at Amazon, to evaluate traffic on the
internet, and to provide a venue for visitors to
post critiques of websites.
a) Popularity is gauged by the Alexa rating, and
the lower the number, the higher the rating. For
example, our site, http://loanresources.net , as
of today’s date, has a 3 month average Alexa
Rating of 86,517. This means that we are one of
the top 100,000 websites in terms of traffic
(and popularity). If we get down to let’s say
50,000, then our traffic and popularity has
increased.
b) You can use this tool to evaluate the traffic
of your prospective lenders.
c) Our advice is this: Don’t be blinded by
popularity alone. There are plenty of
competitive lenders and mortgage brokers out
there with the highest integrity, which may not,
necessarily, have a favorable Alexa rating. It
doesn’t mean that they shouldn’t be
considered. It is simply a measurement of
traffic, and that’s it. Don’t miss out on
what they have to offer.
Just use popularity as one of the many tools at
your disposal, when evaluating online lenders.
5. Reputation:
There are a number of ways to evaluate a
lender’s reputation. Talking to friends,
family, and associates, of course, is one way.
Another method is to see whether or not the
prospective lender is a member of the Better
Business Bureau (BBB at BBB.Com), and if there
are any complaints on record filed against them.
a) The BBB produces what’s called a
“Reliability Report”, and this report will
provide you with corporate information (such as
name, address, phone number), BBB membership
information, whether or not the lender is a
participant of the “BBB Online” program,
along with a complaint history, and each
complaints final resolution.
b) The report also states the overall rating
that they give the lender. Remember we discussed
earlier, that popularity is not everything?
Here’s a prime example. You’d be surprised
how many “popular” lenders, may in fact
carry a rather lengthy BBB Reliability report
filled with a variety of complaints.
c) Again, just use your good, common sense, and
consider reputation alongside all other factors.
Also, if you see something on the reliability
report that may be concerning you, talk to your
prospective lender, and see if they can give you
a reasonable explanation for what happened.
6. Short-Form:
Complete an online “short form” application,
and within minutes, several competitive loan
offers could be making their way to you.
a) Consider the short form application, when
evaluating the lender. Is it short indeed, or
are they asking you for way too much
information?
b) Be expected to share some basic information
about yourself, such as name, phone number,
salary information, etc., but never disclose
what you feel is too personal or compromising,
such as a social security number, credit card
numbers, etc.
c) Does the short-form make sense, is it well
organized, and is it simple for you to follow
and understand? This is important, because if
the form is easy to complete, the lender may be
saying that their whole loan process is simple
and easy. On the other hand, if the form is
arduous and complex, what does that tell you?
So, evaluate your comfort level with the context
of each lender’s short form application
online.
7. Points, Fees, Terms, and Rates:
After you complete the online short-form,
prospective loan offers will almost instantly be
making their way to you.
a) These preliminary loan offers will present
you with important information about the points,
fees, terms, and rates being offered.
b) This, of course, is the nuts and bolts of
what you are evaluating…This is the dollars
and cents of your preliminary loan offers.
c) Obtain several offers, and compare them to
each other.
d) Who offers the best savings? Who seems too
low to believe? Who is way too high to consider?
e) Check the current rates and see how these
offers compare. We’ve got a RateWatch set up
at our website, or, you can find other resources
from any search engine.
8. Communication:
After you’ve obtained several loan offers, it
will be time to talk to your prospective lenders
over the phone.
a) Do not fear this process. Remember, you are
the buyer of this product, and you are in the
driver’s seat. Think of it as an interview,
and you are in charge. Ask some good questions,
and see if you are comfortable with the
relationship forming.
b) How does the lender strike you over the
phone? Is it someone that you feel you could do
business with, or, does the conversation seem
forced and uncomfortable?
c) Use the phone call to evaluate the
relationship, and to obtain useful information.
d) Do not make an immediate decision. Talk to 3
or 4 lenders, and then take a pause, and
evaluate what you’ve learned.
Use your instincts to gauge who you worked well
with, and who might present challenges down the
road.
We’ve enjoyed providing this information to
you, and we wish you the best of luck in your
pursuits. Remember to always seek out good
advice from those you trust, and never turn your
back on your own common sense.
Sincerely, Tom Levine
info@loanresources.net
http://loanresources.net
Tom Levine provides a solid, common sense
approach to solving problems and answering
questions relating to consumer loan products.
His website seeks to provide free online
resources for the consumer, including
rate-watch, tips and articles, financial
communication, news, and links to products and
services. You can check out Tom's website here:
http://loanresources.net , or you can email Tom
at info@loanresources.net.
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