Provide Details To Calculate Your Affordability
Total income before taxes for you and your household members.
Payments you make for loans or other debt, but not living expenses like rent, groceries or utilities.
City or ZIP code you are searching in.
Money that you can spend on the down payment and closing costs.
Yes, I or my spouse served in the U.S. Military
0% down for veterans and their spouses, no mortgage insurance required.
Total income before taxes for you and your household members.
Payments you make for loans or other debt, but not living expenses like rent, groceries or utilities.
Yep You Can Apply For A Mortgage And Even Close Online
Mortgages used to be a very paper-heavy process, with stacks of documents to sign and multiple in-person meetings.
Some lenders still work this way. But lately, the market has seen a surge in digital mortgages.
These tech-enabled mortgage applications remove much of the tedious, manual work normally required and streamline the transaction significantly.
Are you planning to buy or refinance a home? A digital mortgage could ease the process. Heres what you need to know.
In this article
Cons Of Applying For A Mortgage Online
- Less hands-on help If you have a question during the loan application or underwriting process, you might not have a dedicated person to help you if youre applying online. Also, if you prefer an in-person interaction, that likely wont be an option with many online lenders you might instead find yourself on the phone if you need to connect with someone.
- Might hit snags A digital mortgage is designed to speed up the closing process through automation, but if your situation is outside the norm maybe youre self-employed, your credit history has some dings or your debt-to-income ratio is high it could take more time to process your loan application.
- Potentially higher fees Some lenders offering digital mortgages assess higher loan origination fees.
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How Quickly Can You Get A Mortgage Pre
Timing is everything when youre buying or refinancing a home. Of the many advantages that online pre-approval offers, speed is one of the biggest. Because they rely on outdated processes, traditional lenders can take days to issue a mortgage pre-approval. With Better Mortgage, online pre-approval lets you get started right away and kick-off your homebuying or refinance in as little as 3 minutes. Use your laptop or your mobile device to upload financial documents and keep everything organized in a streamlined dashboard.
Working with a digital lender means you can log in and upload your documents anytime, anywhere. At Better Mortgage, we use bank-level security to process pre-approvals, so your data is always kept safe and secure. After you submit your initial documentation, our online tools will instantly match you with great mortgage options. From there you can use your pre-approval letter to start shopping for homes in your price range.
How To Pay Your Mortgage Faster
This article was co-authored by Ryan Baril. Ryan Baril is the Vice President of CAPITALPlus Mortgage, a boutique mortgage origination and underwriting company founded in 2001. Ryan has been educating consumers about the mortgage process and general finance for almost 20 years. He graduated from the University of Central Florida in 2012 with a B.S.B.A. in Marketing.There are 9 references cited in this article, which can be found at the bottom of the page. This article has been viewed 61,398 times.
Prepaying your mortgage can shorten the life of the loan and save you a large amount of money in interest. There are two ways to do this: you could contribute extra money every month or you might be able to take advantage of falling interest rates by refinancing the loan. Whichever method you choose, the important thing is to make consistent payments. This article will show you how to save money by shortening your mortgage.
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When Does It Make Sense To Charge Your Mortgage To A Credit Card
If the timing is such that you canât mail in your monthly payment then it can be worth the cost of a convenience fee to avoid making a late payment, as late payments will show up on your credit report and have a significantly negative effect on your credit score. Another scenario where it can make sense is if the value of any credit card rewards in the form of cash back, points or airline miles is greater than the cost of the transaction convenience fee.
Refinance To A Shorter Term
Another option involves refinancing, or taking out a new mortgage to pay off an old loan. For example, a borrower holds a mortgage at a 5% interest rate with $200,000 and 20 years remaining. If this borrower can refinance to a new 20-year loan with the same principal at a 4% interest rate, the monthly payment will drop $107.95 from $1,319.91 to $1,211.96 per month. The total savings in interest will come out to $25,908.20 over the lifetime of the loan.
Borrowers can refinance to a shorter or longer term. Shorter-term loans often include lower interest rates. However, they will usually need to pay closing costs and fees to refinance. Borrowers should run a compressive evaluation to decide if refinancing is financially beneficial. To evaluate refinancing options, visit our Refinance Calculator.
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Look At The Big Picture
Your mortgage statement allows you to assess the big picture. Buying a home is the largest purchase most people ever make. And taking on the accompanying mortgage is a huge commitment. You need to be well-prepared to make the monthly payments for several years. Unfortunately, many people take on more than they can handle. If you see that you are always struggling to pay your mortgage, you should consult with a financial advisor who may recommend a second mortgage or modifying your existing loan to make payments you can more comfortably afford.
I’ve Heard Some Brokers Do Cashback How Do I Get This
It’s worth asking what commission your broker’s getting for arranging the mortgage. This should be stated on the last page of the mortgage illustration too it’s likely to be between 0.35% and 0.5% of the mortgage value. So on a £100,000 mortgage, the commission or ‘proc’ fee they get will be between £350 and £500.
It’s worth asking if they’re prepared to rebate any of their commission as cashback to you when the mortgage completes, especially if you’re paying a fee for their services as well.
You’re more likely to be able to strike a deal on larger mortgages , but the broker’s well within their rights to say no, whatever the final income they get from arranging your mortgage.
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Here Are The Three Crucial Questions To Ask Brokers
1. Can you get me a mortgage from any UK lender, right now?
This finds out if your broker can source you ANY UK mortgage. Not all can so it’s important to know which you’re dealing with. Here are some of the possible answers:
- ‘No.’ Some brokers are tied to one lender or operate off a small panel of lenders, so they search fewer deals. This makes it simpler and cheaper for them to operate.
- ‘We check all products available to brokers.’ The key point to note here is the last phrase available to brokers. This used to be called ‘whole of market’. Many of these brokers will exclude lenders and products which are only offered directly to the public, mainly as they won’t receive a commission. On top, they may not be able to submit an application on your behalf.
- ‘We check all lenders.’ Some brokers do check lenders’ direct-only deals too. However, they are more likely to charge a fee. In reality, it’s unlikely a broker could guarantee you access to EVERY mortgage, as exclusive deals can be arranged between lenders and brokers .
Just be clear on what your broker is offering. Weigh up the need to check every deal, your willingness to do some legwork yourself, and if you’re happy paying a broker fee. Once you’ve found a broker you’re happy with, you need to ask them the next questions to find out if they’re the best broker for you.
2. Do you charge a fee?
This tells you how the broker makes their money from your mortgage deal. Brokers have two possible sources of income, which are:
Best Online Mortgage Lenders
| Lender | NerdWallet rating
NerdWallet’s ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service. |
Min. credit score Minimum credit score on top loans other loan types or factors may selectively influence minimum credit score standards |
Min. down payment |
|---|---|---|---|
|
Best for overall mortgage experience |
620 |
| 620 |
New American Funding works with down payment assistance programs in 14 states, including California, Texas, Florida and Illinois.
| 620 |
Best for traditional lending experience
Best for variety of loan types
Best for low interest rates
Best for borrowers with weaker credit
Best for credit union lending
Best for low down payment options
Best for variety of loan types
Min. credit score
NBKC offers conventional loans for as little as 3% down.
View details
View details
Why we like it
Good for: borrowers who want low rates and fees and an online experience with phone support. VA loans are an emphasis.
Pros
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Offers government-backed loans and some harder-to-find products, such as construction loans and specialty mortgages for pilots.
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Offers low rates and fees compared with other lenders, according to the latest federal data.
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Displays customized rates, with fee estimates, without requiring contact information.
Cons
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How Does An Online Mortgage Lender Work
Generally, an online mortgage lender should allow you to get rate quotes, fill out an application and upload documents from your computer or mobile device. In some cases, you may not even need to dig up all of the documents yourself.
Many lenders can access necessary information from government agencies, financial institutions and employers with your permission, and take days off the closing process. And with e-closings, you can even close the loan remotely in a little as 15 minutes.
Bundled Buildings / Contents Insurance
All lenders will insist you take out buildings insurance, and normally it’s a condition of them giving you the mortgage in the first place. But be very suspicious of deals which insist you buy your buildings insurance through your lender. While the amount quoted may seem reasonable in the first year, you’ll then be trapped into accepting whatever premium increases they foist on you in subsequent years, for as long as the mortgage lasts.
Some lenders might add on an admin fee of around £25 if you decline to take their insurance, but this can normally be recouped from the insurance provider you end up going with. If you go elsewhere for your home cover, some seriously cheap deals are possible. By using cashback sites, some people have even been PAID to take out insurance. See our Home insurance guide.
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How To Get Pre
The mortgage pre-approval process is essentially the start of your loan application. Youll need to provide some key details to the lender in order for them to process your loan. If you have a co-signer, theyll also need to provide their financial information to the lender. Below are a few steps to help get you started.
Applying For A Loan May Be Less Time
If youve never applied for a mortgage before, it goes something like this. The lender will hand you a stack of paperwork and a laundry list of documents that youre required to make copies of. Getting everything in order can take days or even weeks if youre chasing down bank statements or tax forms.
Online lenders can make the process less difficult to navigate. Instead of making copies of tax returns or other financial documents, you can just upload them to the lenders website. That can speed up the loan process and save you some headaches.
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Should You Apply For Mortgages Online
The process of getting a mortgage involves a lot of paperwork and time. Whether applying for a loan online, over the phone or in person, your mortgage lender will ask for documentation about your employment history and income, any assets you own and any debt you owe.
As of May 2022, the average time to close a mortgage for a home purchase was 48 days, according to ICE Mortgage Technology. The timeline can be impacted by many factors, including the time it takes for an appraisal, title search and employment verification. Applying for mortgages online could potentially speed up this process, but there are also potential drawbacks to consider.
Automatic Payments Made By Ach
To schedule a recurring monthly payment from an account held at KeyBank or another U.S. bank or financial institution, complete and submit our ACH form. You select the date you want your payment withdrawn monthly, so youll know your payments are made on time. Remember, if that date happens to fall on a weekend or federal holiday, your payment will be processed the next business day.
ACH activation usually takes five business days after we receive your completed form, so continue to make your payments with another method until you receive written confirmation of your enrollment in ACH from KeyBank Mortgage.
If your mortgage servicing was transferred to KeyBank and you were already using ACH for payments, you dont need to complete a new form your payments will remain uninterrupted.
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Shop For Your Home And Make An Offer
Connect with a real estate agent to start seeing homes in your area. You may find that because of high demand and COVID-19 restrictions, many homes can be viewed online only. In fact, the number of sales completed online during the pandemic has skyrocketed.
In other words, your buyers agent today will likely be your eyes and ears like never before. Real estate professionals can help you find the right home, negotiate the price and handle all the paperwork and details.
The Benefits Of Managing Your Mortgage Online
- View your current mortgage details, including interest rate, outstanding balance, monthly payment amount and next payment date, and transaction history.
- Explore and secure a new deal for your existing mortgage.
- Make single overpayments and set up regular overpayments start the process to change your mortgage term or repayment method and apply to borrow more money after getting an instant decision in principle.
- For flexible offset mortgages, you can also increase or decrease your payments, make a one-off payment, request a payment holiday and withdraw money from your mortgage.
- If you have a Santander current account, credit card or investments with us, youll also be able to see them in Online Banking and carry out some transactions.
Pick your mortgage in the account summary screen
From here, you can see your mortgage details and manage your mortgage
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How To Get A Mortgage
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.
Getting a home loan isn’t just a big step, it’s an entire staircase and it can take a long time to reach the top. There are times when the climb will feel dizzying, but knowing how to get a mortgage before you start can help you stay organized and feel more in control.
Ready to learn what it takes? Here’s how to get a mortgage, step by step.
Best For Flexible Loan Options
Who’s this for? It’s sometimes tough to find lenders that offer USDA loans in addition to other standard mortgage options, but PNC Bank includes USDA loans in their lineup. This lender also offers conventional loans, FHA loans, VA loans, jumbo loans and a PNC Bank Community Loan, which is a special program that allows homebuyers to put down as little as 3% while still choosing between fixed-rate and adjustable-rate mortgage terms.
This lender also offers a special loan option catered to medical professionals who are looking to buy a primary residence only. With this loan, medical professionals can apply for as much as $1 million and won’t have to pay private mortgage insurance , regardless of their down payment amount. They can also choose between fixed-rate and adjustable-rate terms.
PNC Bank offers online and in-person mortgage application processes, which can be a plus for homebuyers who don’t live near a PNC Bank location but still want to apply for a loan. You can get online pre-approval in as little as 30 minutes as long as you have all the documentation on hand and similar to most other lenders, PNC Bank has a minimum credit score requirement of 620.
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How To Find The Top Uk Mortgage Brokers
Now you know what you’re looking for, as we can’t review every mortgage broker in the UK, we’ve concentrated on some of the big ones that have nationwide scope, plus ways to find local face-to-face brokers. If you have any doubts about a broker, find a different one there’s nothing wrong with talking to several before you settle on one.
