Loans -
Buying homeowner loans online gains popularity
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With the credit crunch affecting the way in which we approach credit, many borrowers have been turning to the internet for loan advice rather than visiting the traditional loan manager at their bank.
Many have found that with the internet as opposed to dealing with a loan manager in a bank they can do their own research and arrive at a more appropriate decision for themselves than an outsider may reach for them.
The world of online credit also has the advantage of often being a lot cheaper than traditional methods of borrowing.
Online credit companies have much lower overheads than banks or building societies or any lender who can be found inside a welcoming old building due to the fact that they do not have to pay the hefty rents associated with business space.
Closeyourownloan.com has gone a step further and offered the customer the opportunity to benefit from the exclusion of a loan officer by pocketing his commission.
On most mortgage or homeowner loan agreements, around 35-40 per cent of the cost goes straight into the loan officers pocket. This means that many companies have to increase their fees in order to keep employing these salesmen and keep the sale of homeowner loans up.
By eliminating the middle man, you, the customer, can get a better deal and reap the rewards of shopping online for your homeowner loan.
Close your own loan works completely online without the hefty overheads which other banks are encumbered with and passes on the profits to its customers.
Dan Mason, president and CEO of Close your own loan, said that they realised that the modern homeowner does not need a loan officer, basically a salesman. They are not looking to be sold something, they simply want to choose a good value loan for themselves.
“We took a good long look at the current mortgage business model and
realized how outdated it was," said Mr Mason.
“We asked ourselves if you can buy a car, a boat or even an island online, why can't you close your own loan online? We researched it and found that this is what people have been begging to do for a long time. So, we just gave them what they wanted."
He says that what his company is doing is unique, as other companies are not passing on the profits of operating online and are still using customers details in order to sell them products they do not necessarily want.
"The biggest mistake many borrowers make is going to one of these 'get multiple quotes from different lenders' websites," says Mr Mason. "What these information brokers don't tell you is that they are going to sell your name and phone number to dozens of different mortgage brokers who will then overwhelm you with phone calls trying to sell you a loan."
A recent survey carried out online confirmed Mr Mason's way of thinking as it revealed that most people were unsatisfied with these multiple choice websites and would not recommend them to a friend.
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| Loan quotations are provided by Leadbay
Ltd. Leadbay Ltd is authorised and regulated by the Financial
Services Authority. |
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