The process of obtaining online mortgage loans has grown exponentially in the last few years. If you think back just ten years ago you had to sit face to face with a “hungry” mortgage broker or bank employee in order to get a mortgage loan. There was a lot of time and pressure involved in that type of transaction. Today you can research and apply for online mortgage loans from a comfortable chair in your own home in front of a computer screen. This article will discuss some of the advantages and disadvantages of online mortgage loans and will provide a roadmap to get you to the proper destination if you decide to get your mortgage loan online.

The paramount issue with online mortgage loans has to due with security. You need to be assured your online information is stored and deal with in a secure manner. First, make sure your are dealing with a “real ” business that has a brick and mortar physical address before you submit any personal information. A simple check with the Better Business Bureau can assuage your concerns. Also, do not submit your social security number through the Internet. Instead, call the institution to provide this sensitive type of information to a real person.

There are three categories of contacts that you may end up working with in the process of online mortgage loans. They can be defined as direct lenders, mortgage brokers, and lead generators.

Direct lenders are the institutions that are responsible for originating the loan. For example, Countrywide Financial, Ditech® Mortgage, GMAC Mortgage, Wachovia Home Mortgages, Bank of America and Wells Fargo are just a few of the direct lenders you may encounter in your research. Direct lenders are the most secure organizations to deal with online.

Mortgage brokers are experts at taking your financial application and then comparing it with hundreds of different banks and institutions to find the best-suited lender to match your specific needs. They usually provide a valuable service but there is some risk because your personal financial information is circulated across the web without you having the ability to track all of its destinations.

Lead generators are the least secure type of organization you want to deal with in finding online mortgage loans. This type of organization simply takes your personal financial information and sells it to mortgage brokers for a fee. It is best to avoid lead generators and go directly to mortgage brokers or direct lenders yourself.

In this new age of the Internet where data encryption is becoming more and more secure, online mortgage loans will continue to be a booming business. If you follow the advice provided in this article your online mortgage shopping experience should be safe and productive.