Home Loan Quotes for Beginners

Is it really possible to get home loan quotes online these days? And if so, how does the process work? Is it safe? Which websites are the best for getting quotes on mortgages?

These are common questions among first-time home buyers, and it’s easy to understand why. Applying for a home loan online can be downright scary. But with a bit of research and planning, you can enjoy the convenience of this strategy while minimizing the risks. Here’s what you need to know about getting home mortgage quotes via the Web.

What is a Mortgage Quote Anyway?

Within the context of this article, a home loan quote is the initial offer or estimate your receive from a mortgage lender. If you apply for a loan through a lender’s website, and they give you a general idea of the interest rate and terms, then you have received a quote from them.

Of course, nothing is written in stone at this point. So it’s basically a way to get the ball rolling.

Here’s how it usually works:

1. You would fill out a form on the lender’s website, or through a lender network.
2. Based on the information you provided, you would receive some preliminary information from the lender.
3. The information might include the interest rate they are willing to offer, your qualification level, etc.
4. After this initial home loan quote, you would follow up by sending additional documents.
5. You might even meet with the lender in person, by visiting one of their local offices.
6. After they review your credit score, income, debt and other factors, they would either approve or reject your application.
7. If you get approved, the lender will offer you an interest rate and give you an estimate of the closing costs.

The process of getting home loan quotes will vary from one financial institution to the next, but this is generally how it works. Like I said earlier, it’s just a way to get the ball rolling and to find out where you stand. By using the Internet to get quotes, you can save yourself a lot of time and energy. You’ll also have access to a larger pool of lenders, which could increase your options as well.

There are plenty of websites that offer home loan quotes to borrowers. You can get them through a bank website, such as Wells Fargo or Bank of America. Or you could get quotes through a lender network (more options this way).

Personally, I recommend you start the process here:

Before Applying for Home Loans

Let’s back up for a second and talk about the things you should do before you request home loan quotes through a lender’s website.

The first thing you need to do is establish your home buying budget. How much can you afford to spend each month, in the form of mortgage payments? This is something you need to know before you start gathering quotes online.

A lot of people think this is the whole point of getting home loan quotes, to find out how much they can afford to pay for a home. But this is the wrong way to think about it. The only thing a lender can tell you is what they’re willing to lend you, what interest rates they have, etc. They cannot tell you how much you can actually afford to pay each month. That’s something you need to determine for yourself — and you need to do it long before you start asking for quotes online.

Here’s an article that will help you establish your home-buying budget:
How Much House Can I Afford to Buy?

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