Mortgage Loan Marketplace and Mortgage Comparison Sites

Feb 8, 2022

7

min read

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t seems as if the world has shifted to the virtual world. Daily activities such as grocery shopping, learning, and even working are done virtually. Most of our daily transactions are now held online, and it’s no surprise that the marketplace has also shifted from the physical to the online world.

What Does Marketplace Mean?

The marketplace is any physical or online location where buyers and sellers meet and exchange goods and services. Nowadays, the online marketplace is more on the trend and is slowly replacing the physical marketplace.

But, don’t confuse it with the online stores because it’s different. An online marketplace is an e-commerce platform that facilitates connecting buyers and sellers virtually.

Suppose you bought a pen from an online store on Amazon. Here, Amazon is the marketplace where you connected with one of the sellers and bought the pen. The same goes for the mortgage and home loan marketplace.

What Is a Mortgage Marketplace?

The mortgage marketplace is where borrowers obtain a mortgage loan from the lenders. There are two types of mortgage marketplace :

Primary Mortgage Marketplace
Secondary Mortgage Marketplace

The primary mortgage market is where customers interact with banks, mortgage brokers, and lenders to obtain a mortgage loan. It’s where mortgage loans are created.

On the other hand, the secondary mortgage market allows investors to buy mortgage-backed securities (MBS). Mortgage-backed securities are like a bond secured by mortgages.

These MBS entitle the investors to the principal and interest from the mortgage payments. In addition, when you invest in an MBS, you receive the right to value the total pool of mortgages.

But, if you are the one looking to borrow a mortgage loan, you’d enter the primary mortgage market to find the lender and obtain the loan at a reasonable rate.

Mortgage Comparison Sites

When you buy something, you definitely would compare the product with other goods. Whether it be a dress or just a potato, you would compare it with others to ensure that you get the best ones.

Buying a home is a big financial commitment and life decision you should take with proper thinking and evaluation.

However, the studies show that only 53 % of homebuyers in the USA compare the lenders when looking for a mortgage loan. As a result, consumers spend more time shopping for a new smartphone than they do when taking out a mortgage loan.

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Finding the right mortgage loan is as important as finding the right home. To find the best one, you need to shop for mortgage loans. But, it can be hectic to contact and compare each lender out there.

For that, mortgage comparison sites are a boon. There are several mortgage comparison sites to go for mortgage shopping. These websites provide you with lender options, and you get to choose whichever is best for you.

Mortgage shopping or comparison sites help you get your best deals online without the need to call lenders or visit bank to bank. Instead, you have to fill in your details, wait for the offers to come to you, and choose the best option.

Here are some of the mortgage comparison sites available :

Bankrate

Bankrate, with the tagline, Your next financial decision just got easier, is one-stop for your financial needs.

The site guides the clients on their financial journey to buy a new home, save for college tuition, or pay off loans. Whatever the needs are, Bankrate provides free tools and resources to achieve financial goals.

You can visit their website to learn more at https://www.bankrate.com/.

Products Offered by Bankrate

Home refinance
Home purchase
Credit cards
Banking
Personal loans
Car insurance

Pros of Bankrate

Free financial management tools
Mortgage comparisons

Cons of Bankrate

Not frequently updated
No face-to-face customer service

Credit Karma

Credit Karma is where credits meet confidence. The site helps you get the best offers based on your credit profile and scores. Credit Karma aims to empower consumers with the knowledge, tips, and tools they need to turn their financial dreams into a reality.

Check out their website to learn more about them at https://www.creditkarma.com/

Products Offered by Credit Karma

Cards
Auto Loans
Home Loans

Pros of Credit Karma

Credit monitoring
Personalized recommendations
Easy interface

Cons of Credit Karma

Cannot access an actual credit report
No FICO score

LendingTree

LendingTree, with the tagline, May the Best Loan Win, is one of the popular mortgage comparison sites.

It is an online loan marketplace where you can meet your various financial borrowing needs, whether it be auto loans, small business loans, personal loans, etc. Moreover, it helps you get the best deals by offering various rates as per your information.

Hop on over to their website to learn more at https://www.lendingtree.com/

Products Offered by LendingTree

Home refinance
Personal loans
Home equity
Auto loan
Business loan
Credit cards

Pros of LendingTree

Trustworthy brand
Quick response
Comparable mortgage rates
Multiple mortgage quotes are available
Free service and resources
Wide range of lenders available

Cons of LendingTree

Possibility of data leakage
Not the best rates
Limits on loans

Nerdwallet

NerdWallet is an online platform that provides reviews and comparisons of different financial products to help users make financial decisions. The site includes credit card selection, college loans, banking, mortgage loans, stock trading, and insurance policies.

You can check more about them through their website at https://www.nerdwallet.com/

Products offered by NerdWallet

Credit cards
Home loans
Student loan
Personal loan

Pros of NerdWallet

Tailored insights
Helpful tools
Free of cost

Cons of NerdWallet

Minimal transaction management
Lacks some of the financial tools
Sponsored partners

SmartAsset

SmartAsset offers online financial services with the aim of helping people make smart financial decisions. It connects consumers with financial advisors and provides them with customer-focused information.

Visit their website to know more about them: https://smartasset.com/

Products Offered by SmartAsset

Mortgage loans
Credit cards
Life Insurance
Refinance
Student loans

Pros of SmartAsset

Easy user interface
Free service
Free and personalized financial calculators

Cons of SmartAsset

Delayed response
No set fees are listed on the website.

Zillow

Zillow is one of the most visited real estate websites, which offers customers an on-demand experience for selling, buying, and renting homes.

Zillow is a one-stop shop for all real estate problems, and it aims to reimagine real estate to make it easier to unlock life’s next chapter. Zillow also provides an easy option to get a mortgage loan.

Hop on to their website to learn more https://www.zillow.com/

Products Offered by Zillow

Home loans
Agent finder
Rental homes

Pros of Zillow

Immediate exposure to the home property
Early search
Home price visibility

Cons of Zillow

Unrealistic evaluations
Premium exposure

Thus, mortgage comparison sites like LendingTree, SmartAsset, Credit Karma, NerdWallet help you make the right financial decision. These sites provide necessary information and resources and help you compare loans with lenders to find the best rate.

However, some drawbacks include the potential risk of data leakage. This is because you provide all of your credit information to these sites and apps.

In addition, some sites sell your data to third parties for their monetary gain. However, many sites claim not to leak personal information, but there is a risk.

Apart from this, the engagement and communication strategy is pretty choppy. Due to high volume sending, these sites face challenges to meet the customers’ expectations. This leads to delayed responses, execution lags, and customers opting out.

Thus, the sites should work on their engagement and communication strategy to optimize high-volume sending and for quick response to their customers.

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