I’m not a fan of online mortgage companies. I once had a client who was using a major online mortgage company and they were really sticking it to her on costs.

I think you should use a mortgage company recommended by your Realtor. I know people are suspicious and worry that their real estate agent is only recommending those loan officers because those loan officers are paying the real estate agent something. Wrong. That’s illegal by federal law.

The only thing real estate agents get by recommending a good loan officer is a happy client and a smooth transaction.

Loan officers are notorious for screwing up home purchases because they don’t do what they are supposed to do on time. In a worst case scenario, a home buyer could lose her earnest money because her loan officer screwed up and didn’t get the loan done on time.

The quality of loan officers varies tremendously from professional crooks to trusted professionals.

Now, if you use a loan officer I recommend, that means two things, 1) they’ve treated my clients well in the best, and 2) if they don’t make you happy, I won’t recommend them anymore. That means my recommended loan officers will go the extra mile for you when a problem pops up because it’s not just your business that is at stake.

On the other hand, see what kind of leverage you have with your online loan officer when a problem arises. Good luck with those phone calls.

Google developing online mortgage search tool.