Many legitimate mortgage lenders offer online applications. Unfortunately there are also some scam artists who have websites that appear legitimate but are not. It is important to try your best to make sure you are applying for an online loan from a legitimate company.

Applying for an Online Loan – Legitimate Companies

There are many legitimate companies that have online loan applications. The first step of course is making sure that they are legitimate companies. You can do this by checking with the Better Business Bureau and doing some online research. Next, Google the company name with the word,”scam” or “fraud”. Example: “XYZ mortgage company scam”

This we see if other people have had bad experiences with the company. Finally, Google map the company address. See if it is a real business address… also if you can do a Google street view you can see the front of the business. Is it a house, garage… or is it a legitimate business with their name on a sign out front.

Once you have determined it is legitimate you want to make sure that the website has a privacy policy visibly displayed on the website. You also want to make sure the application is on a secure server. The way you do this is to check the URL of the application page. You want to make sure the URL starts with https and not http.

You can also ask the company if they have a hard copy application for you to complete and submit.

Apply for an Online Loan – Avoiding the Scammers

You can avoid the scammers by being a little extra careful with online companies. First of all, make sure you are on the right website. Do not fall for the common scam of a site using a sub-domain with a legitimate company name.

Here’s how you know the difference. Every URL includes a main domain, they may or may not include a sub-domain. The main domain appears immediately before the .com, .net, .org, etc. So, an example is: http://www.maindomain.com. A sub-domian appears between the period after www and before the period and main domain. It would look like http://www.sub.maindomain.com.

You should generally avoid sites that have the company name in a sub-domain rather than in the main domain. It is a common tactic of scammers.

Online Loan Applications – Bottom Line

The bottom line is that you have to be careful if applying for a loan online. You can do it safely but you need to use some common sense and your best judgment. Follow the guidelines above and if you have any uncertainty you can contact the lender about alternative ways of applying for a loan. Also, visit the Federal Trade Commission website for more advise for doing business online.

This article is intended for general information. Always seek sound financial and legal advice before making any financial decision.

Author Bio: Helpful mortgage information at Online-Home-Mortgage.net P. Payne works for OHM Mortgage and Foreclosure Information Site providing answers to all those questions people need to know.

Category: Finances
Keywords: applying,online,home,mortgage,safety,scam