How to get an online mortgage
The online mortgage process depends on the bank or lender.
Some lenders allow you to complete the entire home loan process online from start to finish.
Other lenders might allow you to check your mortgage rates online and upload documentation, but might require you to speak with a loan officer by phone before your application can be processed. (Note: Due to notary requirements, closings generally still take place in person, although a lender might send someone to your home instead of making you go anywhere.)
Whatever the level of online services available, an online mortgage loan follows the same basic steps in most cases. In general, here are the steps you may encounter.
1. Check your interest rates
This is typically referred to as a prequalification, and it involves your bank or lender performing a soft credit check to verify your credit score. This does not include verifying income, employment, or assets. Typically, you can fill out a lender's prequalification form in a matter of minutes. Provided you have the lender's minimum credit score or higher, you'll then be able to see the loan products you qualify for.
2. Decide what type of mortgage loan you want
Are you looking for 15 years, 30 years, or another length? Conventional, FHA loan, VA? Select the type of mortgage loan that fits your needs and formally apply.
3. Submit documentation
You'll likely be able to do this entirely online. Many lenders will allow you to directly link to your bank accounts and other sources to make it as easy as possible.
4. Wait for verification
After you submit your documentation to your mortgage company, the lender's underwriting department will verify it. Once your documentation is verified, you'll be cleared to close.
5. Sign documents and schedule closing
Schedule your closing time and date and sign your loan documents. This will likely need to take place in person, but many online lenders will send a notary to you, so you won't have to go anywhere.
It's also worth noting that if your mortgage is a refinance loan, you'll have the added step of scheduling an appraisal of your home to confirm its value.
This happens with a purchase mortgage as well, but it's more of a behind-the-scenes step (as opposed to an appraiser coming to the home you're living in when refinancing).