Online mortgages seem to be all over the Internet these days. With companies like Rocket Mortgage, Quicken Loans, SunTrust and PNC Mortgage just to name a few are usually targeted at a specific audience like millennials.

Technology is changing the real estate industry and is also making it faster and simpler to get a home loan. You can now file a mortgage application entirely online, no need to schedule appointments with mortgage lenders anymore.

#1 – You Might Get a Better Loan in Person Rather Than Online

The first thing you want to do is to shop around for the best loan. Limiting your options by sticking to online mortgages is a bad idea.

Educating yourself on different loan programs is a smarter approach than just going online and typing in things. The fine print will make it hard for you to know if you’re getting the right loan program, the lowest interest rates and the right down payment options that work best for you.

“You always want to have a variety of options when buying your first home, limiting yourself to online mortgages is just naive” says, Tom Sanchez of Sunny Side Realtors in San Francisco, CA.

#2 – You’re a First-time Home Buyer

New homebuyers should research the most options possible. New home buyers get so excited about moving out of an apartment and into a house that they don’t pay attention to details on interest rates, points, and closing costs.

“First-time homebuyers are the first people who fall victim of high interest rates and out rages closing costs. New home buyers need to do their homework before applying for online mortgages” says, Sanchez.

#3 – Self-employed

With online jobs booming there are more people who are self-employed than ever before. Pew Research Center estimates that over 15 million Americans are self-employed as of mid 2019. While people who work at regular jobs only have to show their W-2 tax forms to prove their annual income, self-employed folks have it tougher.

“People who work from home have it much tougher, they need to show much more income documentation like tax return forms, any 1099 forms from the last few years” says, Sanchez.

Self-employed workers are sometimes considered a risk to some companies; they can make qualifying tougher for a borrower. Mortgage companies see someone who has a traditional job and has been working at the same place for many years as less of a risk.

#4 – You’re Pretty Much on Your Own 

Being on your own when trying to buy a house is a bad idea. You always want to be able to reach out to someone in the real estate industry. When getting an online mortgage you don’t have the connection you will have when you go to a bank where the lender might know who you are. A lot of these websites have some sort of online algorithm on who gets approved and who gets denied. 

“Online mortgages have so many hidden fees and false advertising that I wouldn’t let my worst enemy apply there, you want someone you can rely on and you just cant do that with a screen and a automated online mortgage service” says, Sanchez.