HOW TO SHOP FOR THE BEST ONLINE LOANS:

Finding The Best Online Loans From Lenders and Brokers

" I WAS TOLD A DIRECT LENDERS IS THE BEST CHOICE WHEN GETTING A LOAN... IS THIS TRUE?"

The main advantage to working with a lender is their quickness to fund a refinance loan as their underwriting department could be in-house and perhaps their convenience.

" DON'T BROKERS CHARGE YOU MORE MONEY?' 

You can also get online loans and home loan refinancing from a mortgage broker. They arrange transactions rather than lending money directly; in other words, they find a lender for you to get that mortgage home loan quotes for you. A broker has access to many lenders and investors. That can mean a wider selection of loan products to fit your particular circumstances as well as terms from which you can choose.

Brokers will generally contact several lenders to get the best rate but they are not obligated to find the best deal for you unless you have committed to them to act as your agent. You can contact more than one broker, just as you with banks or thrift institutions but a word of caution, neither you or the broker is obligated to you unless you feel comfortable and trust the person you are dealing with.

Another strong point in working with a broker is the many resources they have established to help you find the right kind of loan as well as process the loan quickly for you.

JUST REMEMBER TO ASK...ARE THEY A LENDER OR A BROKER?

Another thing to remember during your search for a refinance loan and that is to find out if the company you are considering is a lender or a broker. Some financial institutions operate as both lenders and brokers. Therefore, be sure to ask whether a broker is involved or not. Often times it is best to work with a mortgage banker, that is they have the ability to represent you with the best banks and lenders. That is because they usually have their own in house processing and underwriting!

WHAT ABOUT FEES? ....OR IS IT WHO YOU REALLY TRUST?

Regarding fees, whether you choose to work with a broker or lender there will always be fees for their services. Yes the broker has origination fees but so do the lenders. Fees are allocated in different categories. The best way to understand how much you are paying is to request a 'Good Faith Estimate' that discloses your fees. You should also get a 'Truth in lending act' print out of the loan you are being quoted on. Then you will probably be able to negotiate with a broker or a lender. A lender will have a higher overhead and many times they need to reach their quotas. However certain costs and fess can be negotiated. Bottom line: Who do you trust to secure your online loans?

 Curt de la Cruz is a free lance writer and is a professional in the mortgage industry. Visit his website at 101-credit-debt-finance.com