Should I do my mortgage application online or with an Advisor?
Should I do my mortgage application online or with an Advisor?
You’ve probably heard the radio ads touting bank approvals in 60 seconds or less as more and more lenders advertise ‘instant’ qualification.
In the words of Radiohead: nice dream. And while I’ve obviously aged myself with the Radiohead reference, the sentiment holds true. In theory, it’s a good idea, but from experience, I would argue that it’s very hard for an algorithm to understand your story fully.
For example, can the app account for the income you earn from your part-time gig? Can you easily explain to an interface why you had those two late payments last year when your mom fell sick? Better still, can it help answer in simple language all of the questions you have about first-time homebuyer incentives and appropriately recommend what type of mortgage is right for you? Sure, you can tell it your income, assets, and liabilities, but how can you share with it your dream of moving to the Okanagan in a few years to start a business in the hopes that it will guide you on the right path.
From what I’ve seen firsthand, these insta-approvals are more about data farming than delivering a decision, and there’s a very high likelihood that your query is going to get rooted to a living, breathing human being anyway.
Personally, I’m a fan of technology, and it’s aided the mortgage industry big time over the last decade. Online applications can be a great way to get your information organized so you can get the ball rolling efficiently. However, technology alone is unlikely to serve your full range of needs.
My recommendation? Enjoy the best of both worlds, leverage information you find online, and also engage with an Advisor that you trust. That way, you have access to resources while building a relationship right from the start. And your Advisor will have so many different ways to communicate (text, email, Skype) that connecting on your terms shouldn’t be a hardship at all.
Questions? Let’s chat.