How To Apply To Get A Mortgage Online

by: Carl Thompson

4 years ago

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The process of securing a home loan has changed dramatically since the turn of the century. For previous generations, the plan was simple – if you wanted a mortgage, you headed to the local bank. The bank would provide you with a few basic options, and you could fill out some paperwork to apply for a loan.

These days, of course, things are different. You could still head to your local bank and do it the old-fashioned way, but there are better options in a digital world. With online lending more popular than ever before, you can easily shop for rates and apply for loans from the comfort of your own home.

If the competitive pricing, convenience, and flexibility of online lending appeals to you, we’d like to present three options –

Consumer Direct Mortgage
SoFi
Rocket Mortgage

The rest of this article will take a closer look at each of these three lenders and how they can make your home buying experience successful – and even enjoyable.

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Our Top Choice

A simple process
Easy rate quotes
Approachable for first-timers
Nearly nationwide

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How We Determined Our Top Pick: Consumer Direct

It is the overall package offered by Consumer Direct Mortgage that earns it our top spot in this review. As you search for a conventional home loan to purchase a property, this lender steps to the front due to their combination of rates, service, and simplicity. In a market that is famous for being complicated and frustrating to manage, Consumer Direct Mortgage takes a different approach, and it pays off nicely.

Pros

A simple process. One of the biggest advantages of shopping for a mortgage online is simplicity, and Consumer Direct Mortgage delivers on that promise. You’ll follow along with a straightforward, four-step process to work toward selecting the right loan offer for your situation.
Easy rate quotes. If you are in the early stages of the home buying process and simply want to check out your options and look at some rates, the Consumer Direct Mortgage website makes it easy to do so.
Approachable for first-timers. It can be intimidating to try and secure a loan for your first home, but those new to the process are welcomed here and will be able to get answers to all of their questions.
Nearly nationwide. If you live in the United States, there is a good chance that Consumer Direct Mortgage can serve you. Maryland is the only one of the 50 states where home loans are not offered by this company.

Cons

Informational resources lacking. This is a minor point, but the Knowledge Center and FAQ section of the website are lacking. If you need answers to questions that aren’t covered here, contacting Customer Service would be your best bet.
Online only. Unless you happen to live near one of their few physical locations, this will be an online-only experience. Of course, there are plenty of advantages to shopping online for a loan, so you may not see this as a drawback at all.

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Our Next Best Choice: SoFi

Modest Down Payment
Loan Officer Help
SoFi Member Convenience

Get Pre-Approved With SoFi

How We Determined Our 2nd Best Choice: SoFi

Home loans are just one of the many products and services offered by SoFi. This personal finance company has a relatively short history – it was founded in 2011 – but it has made a notable impression on the market since then. In addition to credit card consolidation, investment options, and many other products, SoFi also offers home loans. In this section, we’d like to take a quick look at the pro and cons of turning to SoFi for your conventional home loan needs.

Pros

Modest down payment. If you are a little short on cash for your home purchase, look to SoFi and consider the option of putting as little as 5% down to close the deal. There are limitations and restrictions that apply, so take the time to educate yourself on your various down payment options.
Help is available. While the process of getting a home loan through SoFi is entirely digital, you will have access to mortgage loan officers who can help you get the information you need to complete the process and make the right choices.
Already use SoFi? If you happen to already be a SoFi member through using one of their other products, you could be eligible for a fee discount when you use this platform to secure a home loan.

Cons

May not be able to serve you. You might not live in a state eligible for a loan from SoFi, as their home loan products are only available in 42 of the 50 states, plus Washington, D.C.
Rates are harder to access. One of the great things about shopping with Consumer Direct Mortgage is how quickly and easily you can see rates. It’s possible to view rates at SoFi as well, but there are a couple more steps required.

Get Pre-Approved With SoFi

Our Third Best Choice: Rocket Mortgage

Quick Information Gathering
Automation In Place
Information And Help Available

Get Pre-Approved With Rocket Mortgage

How We Determined Our 3rd Best Pick: Rocket Mortgage

Even if you haven’t been paying close attention, you may already be familiar with the name Rocket Mortgage, as this brand has invested considerably in advertising in recent years. As with the other options we have mentioned on this page, you’ll find a quick and easy application process at Rocket Mortgage, and you will be able to shop their competitive rates. So, what stands out about this platform as compared to the others? Let’s take a look at one more set of pros and cons.

Pros

Gather information quickly. A big part of the appeal of seeking an online home mortgage is the speed with which you can go through the process. As the name would suggest, Rocket Mortgage is particularly focused on speed and efficiency, so this may be a good option if time is of the essence for you.
Automation in place. More and more processes are being automated in today’s world, and you can leverage that technology to make the notoriously complex mortgage application task a little easier. Rocket Mortgage can automatically grab many of the pieces of information needed to get your loan offer ready.
Plenty of information and help available. While you won’t be working directly with a person in this process, there is plenty of guidance along the way to help keep you on track.

Cons

Credit check. You’ll always have to go through a credit check when trying to get a home loan, but that check happens earlier in the process with Rocket Mortgage than with some other online lenders. So, if you are just wanting to look around and consider your options, you might not like having to submit to that check so quickly.
Closing costs. All home loans have closing costs, and the exact costs you have to pay will vary depending on your situation and the loan you choose, but the costs with Rocket Mortgage may prove to be higher than some of your other options. Pay particular attention to this point during the shopping process.

Get Pre-Approved With Rocket Mortgage

Closing the Deal for an Online Home Loan

Yes, it is a new way of thinking to turn to an online lender for a home loan as compared to your local bank. However, there are many benefits to doing so, including a faster process, less back and forth communication, and the ability to shop around for the best deal. If you are getting ready to buy a house and need to start working on your financing, consider the three options we’ve listed above. While we put Consumer Direct Mortgage at the top of the list, each of the three is worthy of your attention. Good luck!

Get Pre-Approved Now