E-Loans and E-Escrows
You may have noticed that loan and escrow services are now being offered over the internet. Can these services help you and should you rely on them? Closing agents and lenders are offering approvals and closings with lightening speed, often being approved for a loan in minutes.
It is now possible to open an escrow from the convenience of your own home or computer. Obtaining credit reports over the internet has become commonplace. Internet mortgage websites offer search capabilities to find just the right loan for you.
It is not surprising that these services have become available and they do offer convenience and speed. It has always been possible to obtain copies of your credit report, but the internet offers a way to do this quickly. The advantages of viewing your credit report before applying for a loan can be invaluable. There may be items on your report which you were not aware of, an unpaid collection that you never knew existed. Other questionable items may be reported, or incorrect information listed, that you may want to clear up before you apply for a loan.
A lender will score your credit report, and the higher you rate on this scoring scale, the better position you will be in to negotiate loan terms with your lender. You may call the creditor and try to determine why they are reporting certain items on your credit report. It may be the case of only a simple error or failure to remove an item. If you have any trouble reading your credit report, you should seek advise from a professional.
Escrow services offered over the internet are useful when dealing with the new internet auction services for merchandise and they may be a useful tool to open a property sale transaction for an experienced buyer or seller. At this early stage, opening escrow yourself should be done with caution.
The face-to-face relationship of an escrow or closing agent is often invaluable in helping a novice close a transaction. Your escrow officer or agent provides a valuable service of pointing out aspects of your closing documents and safeguards for you to consider in your particular transaction.
Signing legal documents may have significant implications later on, so decisions you make should be done with certainty. The internet escrow services do offer toll free telephone numbers to call with questions, but trained professionals, such as closing agents, mortgage brokers, and attorneys, can offer invaluable advice and perhaps should be considered in conjunction with using an e-escrow or e-mortgage service.
This column may not be resold, reprinted, resyndicated or redistributed without the written permission from Escrow Publishing Company.