Mortgage refinance loans have become one of the fast growing trends in the consumer loan market. As home prices remain at high levels, many homeowners have responded by refinancing their mortgage or taking out a home equity loan. Online mortgage lenders have also reacted and the application process has become easier than ever. But, before you apply, it is important to consider the risk involved with shopping online. To make sure you have a secure transaction, use the following guidelines as a start to protecting your personal information.
Research Credentials
Before applying for a mortgage refinance loan, you should always check the lender's credentials. Most websites will post this information on an "about us" page and will include company credentials, certifications, or other mortgage sales experience. If you cannot identify a lender's certification, simply contact them directly or refer to a trusted source like the FDIC (Federal Deposit Insurance Corporation). Reliable lenders will freely provide you with any loan certifications as they most likely understand your concerns about financing over the internet.
What's in a Name?
When shopping online most consumers tend to trust bigger names. Sites like Amazon and eBay are expected to provide better protection and as a result they receive more traffic. The same can be applied for online mortgage lenders. If the lender has a trusted name and good reputation, you can usually expect to have a safe transaction. Of course there are exceptions to the rule and smaller merchants may be just as secure and even offer lower rates. In either case, always verify that the site is secure.
Identify Security Verifications
If you have followed the above recommendations and are ready to apply, make sure you look for security verification on the application page. Typically a closed padlock or key icon signifies the page is secure. Also, "https" displayed in the page URL ensures the website server provides a secure connection. Often the site will use an encryption service and will provide a link or page with details about the connection.
Always be on guard however. If you are filling in an application and it requires a date of birth and social security number, then be careful. This information is enough for major credit card fraud and even driver's license fraud. Fortunately, many mortgage websites don't require a social security number on their forms and can provide quotes without giving away sensitive information. If you are still suspicious about a site then contact them and ask to speak with someone about their privacy policy. If you have further trouble, report them to the Better Business Bureau.
Stay Informed
Perhaps the best way to ease into online mortgage refinancing is to educate yourself about the process. Many sites offer homeowners information about mortgage loans, the home equity loan process , and mortgage refinancing. Even lenders provide relevant advice and up-to-date information on their sites to help make the process as painless as possible for you.
There are always more traditional ways of staying informed and visiting your local bookstore or attending a seminar may help fill in the gaps. But in most cases you can access all the information you need right from you computer at home.
So before committing to any one loan provider, take a moment to consider these safety guidelines; look for proper credentials, verify a site's security, and stay informed about the loan process. If you follow this advice, your experience will be easier and you can be more confident in your loan decision.
Houston Neal is a featured financial correspondent for online publications. He is a guest writer for Citylight Financial and works full time for 10-Spaces Consulting. Citylight Financial is a resource for consumers interested in the mortgage process. They provide homeowners with tips about interest rates, mortgage programs, and mortgage lenders available on the web.
