Is an online mortgage loan right for you?

• Shopping for a mortgage loan online is fast and easy, but what you gain in convenience, you lose in personal attention. When you work directly with a mortgage broker or banker, you can ask questions and seek advice. You can ask questions through e-mail or through an 800-number at many mortgage loan websites, but this is not the same as having a one-on-one dialogue with a banker or broker.
  
  You will, however, be able to use online mortgage sites to get a feel for the types of rates that are available on 30-year, 15-year and more exotic mortgage loans. You'll be able to compare fees and origination charges from several companies, and you'll be able to do all of this quickly.
  
  For these reasons, online mortgage loan sites make the best sense for borrowers who already have some idea of what type of loan they want, and just want to shop for the best loan product for them. Those borrowers who need more individual attention, or who have little knowledge of mortgage lending, might do better to work with an actual banker or broker.
  
  

Safety First

• As with any online transaction, you'll need to exercise caution when shopping for an online mortgage loan.
  
  Most sites such as Bankrate.com, LendingTree.com and Zillow.com ask for basic information as you begin shopping for a mortgage loan. They'll ask for your annual income and your level of debt. They'll ask about what type of mortgage loan you are looking for and if you've had any bankruptcies or foreclosures on your record.
  
  They won't, though, ask you for your Social Security number or address until you're actually ready to commit to a mortgage loan. Don't work with any site that asks for these key pieces of information upfront. The company behind the Web site might use this information to run your credit report. This can end up hurting your credit score.
  
  

Watch for hidden fees

• Make sure, too, to get a list of all of the fees and other costs that the Web site charges for either originating a mortgage loan or referring you to an outside source for a loan. Reputable companies are quick to share this information. Others hide them until you get to closing, then you'll receive some nasty surprises.
  
  Either getting or shopping for a mortgage loan online is a good choice for many home buyers. It does come with risks, though, and shoppers should understand that most online mortgage sites eventually connect buyers to real, live mortgage loan officers. You may not meet this lender in person, but you will have to close your mortgage with an actual banker or broker.
  
  If you're cautious, and if you shop at more than one site, working with online mortgage companies can pay off.