The best thing about online mortgaging is that it moves fast. The worst thing about online mortgaging is that it moves fast. In other words, consumers can often shave days (if not weeks) off closing their mortgage. But they've got to be prepared to act quickly once their application hits cyberspace.

In Part I of this article, I related my experiences with online mortgaging. My story turned out fine (to the best of my knowledge!) The company was legit (I spent time off-line checking that out before proceeding online.) The loan closed in less than two weeks, and the paperwork (including verification of funds and filed tax returns) was done via fax. The lender was located in a state two thousand miles away; but I trekked into my local title company down the block to close the loan---never meeting the lender face-to-face.

Now for the questions and concerns. Yes, it could have been that someone sinister “appropriated” my information via the Internet. But that could also be true dealing with someone in person or on the phone (especially in today's world of identity appropriation—just ask my 85-year old mother!)

Yes, it might be true that my financial information was “sold” to someone else who could use it. But think about it. That's virtually true of the majority of credit information on us anyway (unless, as federal law provides, we state in writing to the contrary.)

And I suppose that it could be said that I might have been wise to check-out the company before submitting my financial information to them; (which, in my estimation, poses the greatest potential negative impact when dealing with online applications.) I guess I waited to check out the company until I was off-line, feeling that until I committed to take a loan from a certain lender, the risk was more than compensated by the reward of saving time and effort using this medium. But if I were to do it again, I would first check out the lender's credentials, BBB rating, etc. before submitting my personal information.

The benefits of online refinancing far outweighed the negative impacts. I loved shopping for both rates and fees vicariously from the comfort of my home office. I loved “controlling” the application step-by-step. If I didn't want to move on, I could just “escape” and turn off my computer! And I loved the wealth of information available to me. While I spent less than one hour searching through information, I could have easily spent days!

It's clear that technology is streamlining the way we apply for mortgage loans. But perhaps the greatest roadblock is the speed of our acceptance (or lack thereof) to this way of doing business. Just as we no longer have to visit a physical bank building to withdraw funds from our checking accounts, on-line mortgaging is the next level of accessibility and comfort for financing America's homes. It's built, it's available, and it's expedient---if we choose to embrace it.

Published: April 21, 2000

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Julie Garton-Good, DREI “The Frugal HomeOwner™” As a syndicated newspaper columnist, author and international speaker, Julie Garton-Good DREI, C-CREC™, is called “America’s Home Affordability Expert”, addressing more than 25,000 persons annually on topics of real estate industry trends and home affordability. She is the author of five real estate books and is the sole two-time recipient of the international "Real Estate Educator of the Year" award from the Real Estate Educators Association. In 1997, The National Association of Realtors® nominated Julie as one of the fifty most influential people in the real estate industry. She shared the list with only three other women.