8-Point Checklist: Online Vendor Assessment

Here are 8 things to consider when evaluating online lenders:

1. Web-page design
2. Privacy Policy
3. About us
4. Popularity
5. Reputation
6. Short form
7. Points, fees, terms and fees
8. Communication

1. Website design:

The website is, in fact, the showcase of the Internet. In the real world, your first impressions make a difference. Well, it is no different on the Internet.

1. Does the site seem correct? Can you get some valuable information right away, or does it seem like you’re being pressured to click here, click there?
2. Does the page load fast, indicative of a reliable server, or does it seem like it takes forever to display everything (or worse, are you getting multiple error messages)?
3. Is there a ridiculous number of pop-ups, underlays, and other ad campaigns on your face, or is the lender just putting it all together for you to decide?

Take a look at the website design and trust your first impressions.

2. Privacy Policy:

You are likely to share personal information in exchange for loan offers. You shouldn’t be so concerned about this that it limits your ability to communicate with potential lenders. However, use your common sense.

1. Does the website publish its privacy policy? If so, take a quick look at it.
2. Does it seem to make sense and is it reasonable?

Virtually all trusted online companies have now posted privacy policies to assure you of their intent and to comply with current laws and regulations.

3. About us:

Does the lender publish an “about us” page?

1. If not, this could be a red flag. In other words, the lender should take pride in its history, its vision, and its mission statement. An “about us” page is an opportunity for your lender to tell you a little about themselves. If you don’t see it, what are they hiding?
2. On the other hand, if you see an “about us” page, check it out. How long have they been in business? Where they are located? Do they post a phone number and provide contact information? What are their policies and philosophies?

Reading the “about us” page can give you great information about the lender.

4. Popularity:

Take your lender’s website address and connect it to Alexa.Com. Alexa is a tool, created by the folks at Amazon, to assess internet traffic and provide a place for visitors to post website reviews.

1. Popularity is measured by the Alexa rating, and the lower the number, the higher the rating. For example, our site, http://loanresources.net, as of today has a 3-month average Alexa rating of 86,517. This means that we are one of the top 100,000 websites in terms of traffic (and popularity). If we go down to, say, 50,000, then our traffic and popularity have increased.
2. You can use this tool to evaluate the traffic of your potential lenders.
3. Our advice is this: don’t be blinded by popularity alone. There are many competitive lenders and mortgage brokers with the highest integrity, who do not necessarily have a favorable Alexa rating. It does not mean that they should not be considered. It is simply a measure of traffic, and that’s it. Don’t miss out on what they have to offer.

Use popularity as one of the many tools at your disposal when evaluating lenders online.

5. Reputation:

There are several ways to assess the reputation of a lender. Talking to friends, family, and associates, of course, is one way. Another method is to see if the potential lender is a member of the Better Business Bureau (BBB at BBB.Com) and if there are any complaints filed against them.

1. BBB produces what is called a “Reliability Report”, and this report will provide you with corporate information (such as name, address, phone number), BBB membership information, whether or not the lender is a participant in the “BBB program. On-line”. , along with a history of complaints, and the final resolution of each complaint.
2. The report also establishes the overall rating given to the lender. Remember we discussed earlier, that popularity isn’t everything? Here is an excellent example. You’d be surprised how many “popular” lenders can, in fact, have a fairly extensive BBB Reliability Report filled with a variety of complaints.
3. Again, use your good common sense and consider reputation along with all other factors.

Also, if you see anything on the reliability report that might concern you, talk to your potential lender and see if they can give you a reasonable explanation for what happened.

6. Short format:

Complete an online “short form” application, and within minutes, several competitive loan offers could be coming to you.

1. Consider the short form application when evaluating the lender. Is it really short or are they asking you for too much information?
2. You are expected to share basic information about yourself, such as name, phone number, salary information, etc., but never reveal what you think is too personal or compromising, such as a social security number, credit card numbers, etc.
3. Does the short format make sense, is it well organized, and is it easy to follow and understand? This is important, because if the form is easy to complete, the lender may be saying that the entire loan process is simple and easy. On the other hand, if the shape is arduous and complex, what does that tell you?

So please assess your comfort level in the context of each online lender’s short form request.

7. Points, rates, terms and rates:

After completing the short form online, potential loan offers will be directed to you almost instantly.

1. These preliminary loan offers will present you with important information about the points, fees, terms, and rates being offered.
2. These, of course, are the basics of what you are evaluating … These are the dollars and cents of your preliminary loan offers.
3. Get multiple offers and compare them with each other.
4. Who offers the best savings? Who seems too short to believe? Who is too tall to consider it?
5. Check the current rates and see how these offers stack up. We have a RateWatch set up on our website, or you can find other resources on any search engine.

8. Communication:

Once you’ve gotten several loan offers, it’s time to get on the phone with your prospective lenders.

1. Don’t fear this process. Remember, you are the purchaser of this product and you are in the driver’s seat. Think of it as an interview and you will be in charge. Ask some good questions and see if you are comfortable with forming the relationship.
2. How does the lender appeal to you on the phone? Is it someone you think you could do business with, or does the conversation seem forced and awkward?
3. Use the phone call to assess the relationship and get useful information.
4. Don’t make an immediate decision. Talk to 3-4 lenders, then pause and evaluate what you’ve learned.

Use your instincts to assess who you worked well with and who might present challenges in the future.

We have enjoyed providing you with this information and wish you the best of luck in your endeavors. Remember to always seek good advice from those you trust and never turn your back on your own common sense.

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