While it certainly isn’t for everyone, if you’re comfortable with Internet shopping, a do-it-yourself mortgage may be for you.
According to a recent article in Fortune, the mortgage market has tightened over the past few years, and even qualified buyers are finding it difficult to enter the housing market. It may be time to look elsewhere.
The most recent product, Rocket Mortgage from Quicken, has been around since 2015, but attracted mass attention through an ad during this year’s Super Bowl game. Competitor Guaranteed Rate is using TV home makeover host Ty Pennington to promote its product. Both provide an online option that may give traditional lenders a run for their money.
“Applying for a mortgage and supplying supporting documents – traditionally one of the most time-consuming, paperwork-intensive, and frustrating ?nancial exercises around – increasingly is being automated. That means applicants will ?nd the process easier, faster, and, possibly, less expensive than before,” says financial writer Russ Wiles in USA Today.
According to one Rocket client, you get actual approval in minutes, including verification of credit, income, and assets. It also shaves off an estimated seven days from the process. The human touch is evident, as hands-on appraisals and underwriter approvals are required; humans are also available to work through glitches.
Some are concerned about a seeming return to the risky lending practices of the bad old days, but this does not appear to be happening. The only negative to date is applying for a mortgage in your sweats with your morning coffee. And is that really a negative?