Freddie Mac Explains World of Online Florida Home Loans

Confused about the Florida home loan process? Don’t be. Soon enough, it will be as simple as purchasing an airline ticket over the Internet.

As Ed Albrigo, vice president of enterprise programs for Freddie Mac, explains, borrowers will go through steps, from application to registering with the county courthouse, without the piles of messy paperwork currently required.

“In the past year,” he said, “a more concerted push was made across the [online Florida home loan] industry,” noting that volume is small but growing. The first e-mortgage successfully sold was by Wells Fargo Home Mortgage to Freddie Mac in 2000 and other mortgage lenders, such as First Advantage Mortgage and Greenlight Financial, write a small number of mortgages electronically already.

Advantages of e-mortgages to the buyers

So, why should this news excite anyoen thinking about purchasing a house in the next few years? There are many reasons:

Turnaround time: Much of the time spent on Florida mortgage loan approval comes from moving bulky paperwork from one desk to another. Not only can electronic forms be transferred almost instantaneously, but more than one person can access and work on them.

This can cut loan processing time in half, or less. Instead of a turnaround time of 30 to 45 days or so, it could take two to three weeks. There’s a limit, however. “Some of the time is spent on due diligence,” says Albrigo, ” and that can’t be shortened too much.”

Cost: A gret dealof the savings will come from vanquishing the production, management and maintenance of paper. Deliver costs alone can add up.

Loan officers should be able to process more loans, increasing their efficiency. Gabe Minton, vice president of industry technology for the Mortgage Bankers Association, says lenders and settlement services providers might encourage consumers to do paperless transactions by offering discounts.

“I did a refi recently,” he says, “and I saved $100 on the spot from the settlement services provider by submitting my settlement information online.”

Once e-mortgages go mainstream, buyers will REALLY be in luck. Lenders should begin to pass along savings in the form of lower fees and Florida home loan rates.

Accuracy: Corrections can be made in many electronic documents at once, rather than going through each individual hard copy. The completed documents will be available for examination by home buyers before closing to make sure everything is clear and correct.

Typically, the first time all the paper work is completely assembled occurs at closing. Many times, discoveries are made then and there that have to be dealt with on site and under pressure. Consumers often feel forced to make concessions because they don’t want to jeopardize their purchase.

All this can be avoided through the use of online Florida home loans. Won’t that be nice?