A Beginner’s Guide to Mortgage Marketplaces
Technology has revolutionized how we manage our finances, and home buying is finally getting a tech makeover of its own by way of mortgage marketplaces. While searching for a loan to purchase a new home, or refinance an existing one, has typically been laborious and time-intensive – as NerdWallet puts it: “This is where homework and a lot of patience come into play.” – recent innovations in the industry have finally started to take the pain out of the process, and made finding a home loan ridiculously simple.
Mortgage Marketplaces 101
Finding a loan for home purchase or refinancing has typically involved either taking the time to compare lenders yourself, or working with a mortgage broker to find the best loan option. Just like going to an experienced travel agent, whose relationships in the travel industry ensured the best rates, used to be the gold standard in planning travel, mortgage brokers have relationships with various lenders that usually ensure better rates than you can find on your own. Websites such as Expedia, Travelocity, and Kayak have put the power of comparison shopping in the hands of today’s travelers, and that is exactly what mortgage marketplaces aim to do with home loans.
How Mortgage Marketplaces Differ from Mortgage Brokers
Working on your own to compare loan offers can take hours, and result in a handful of options, while working with a mortgage broker takes that time out of your hands and results in better options than you’ll likely find on your own. You are still on your broker’s timeline, which can be several business days. Using a mortgage marketplace, however, often takes only a few minutes, and compares offers from dozens of lenders.
That being said, a unique benefit of mortgage brokers is that they can also offer advice and guidance in the process of applying for a loan and choosing a lender. If you’ve chosen the DIY route and your situation isn’t very straightforward, or has additional considerations, there may still be some homework to do on your part to research those considerations, and how to account for them.
The Benefits of Mortgage Marketplaces
Mortgage marketplaces offer a lot of flexibility by way of mortgage comparisons and, beyond that, they’re an excellent tool for those who are just starting to think of purchasing their first home. Using the mortgage calculators hosted on most mortgage marketplace websites, you can play around and see what kind of rates you’d get depending on the down payment you can afford, as well as your current credit score. This allows you to budget appropriately to begin saving your down payment, as well as making any necessary steps to improve your credit score.
Our favorite mortgage marketplace is Sindeo because they’ve combined the best of both worlds. Many mortgage marketplaces simply match you with possible lenders and leave it up to you to contact the lender yourself. Furthermore, if circumstances such as previous bankruptcies or a low credit score have left you a less-than-desirable loan candidate, most mortgage marketplaces will simply return a message letting you know they couldn’t find anyone to help you.
Sindeo is a full service mortgage marketplace, from start-to-finish. After supplying them with basic information about yourself and what you’re looking for, Sindeo will search dozens of lenders, with over 1,000 loan programs to find the options that will be best for you. Once you’ve decided on a lender, you can submit for pre-qualification and pre-approval right through the Sindeo website. From there, should you make an offer, a Sindeo advisor works with their team of professionals to take care of everything else, including underwriting, appraisal, title, etc. While it takes an average of 46 days for a loan to close, a loan with Sindeo can close in as few as 15 days.
One of the reasons we love Sindeo, and what sets them apart from other mortgage marketplaces, is that if you’re a loan applicant with a blemished record and they’re unable to find prospective lenders for you through their automated search, they’ll give the option of speaking to one of their advisors to receive more personalized attention – for free.
What is your experience with mortgage marketplaces? Leave a comment below and tell us all about it.