Los Angeles, CA (PRWEB) October 09, 2013
United Online Mortgage Loans of America agreed to weigh in on the subject of cash home purchases, offering advice on how best to deal with online lenders, and discussing the long-term impact of online mortgage lenders on the market at large.
"Borrowers simply have to conduct their due diligence, just as they would with any lender. When they research each site, they need to read the fine print, the terms of service and completely understand how each lender functions," said a representative of a united loan company offering cash loans throughout the United States. "Thorough research of a lending company’s history, policy and customer satisfaction rates are incredibly important. Buyers are using their 'united cash', a term the company is using to designate two individuals coming together each with their own savings, to buy houses outright without using loans."
When making a long term commitment as sizable as a mortgage loan, borrowers need to be absolutely certain what the terms of the loan entail. Borrowers must also be wary of giving out their personal information to any potential lender. "When you look at the company’s policies, you need to be certain what they will do with your personal information. It is necessary for you to give them your information when applying for a loan or requesting a rate, but it is up to you to find out what their policies are regarding the dissemination of that information," said the representative.
Some online lenders make money not only through their cash loans, but also through referrals they earn by passing on a prospective borrower’s information to another company. The representative preached caution when dealing with online lenders. "There are some lenders that distribute this information to 20 to 30 other lenders, so borrowers have to be careful."
It seems likely that online lenders are here to stay. The business world is becoming increasingly digitized, and it is easier for consumers to research and compare lenders from the comfort of their homes. "It is totally safe, but only as long as consumers are aware that they must be diligent when selecting a lender. This is not a choice that should be made without careful consideration."