8-Point Checklist: Online Supplier 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, Charges, Terms and Rates
8. Communication

1. Website design:

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

1. Does the site seem direct? Can you get valuable information right away, or does it seem like you’re being pushed to click here, click there?
2. Does the page load fast, does it indicate a reliable server, or does everything seem to take forever to display (or worse yet, are you getting multiple error messages).
3. Is there a ridiculous amount of pop-ups, under-windows, and other in-your-face ad campaigns, or does the lender just put everything out there for you to decide?

Examine the design of the website and trust your first impressions.

2.Privacy Policy:

You are likely to share certain 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.
2. Does it seem to make sense and is it reasonable?

Virtually every reputable online business has now posted privacy policies to assure you of their intent and to comply with current laws and regulations.

3. About us:

Does the lender post 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 them. 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 tremendous 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 reviews of websites.

1. Popularity is measured by Alexa rating, and the lower the number, the higher the rating. For example, our site, http://loanresources.net, as of today’s date, 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 get to, say, 50,000, then our traffic and popularity have increased.
2. You can use this tool to assess traffic from 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 may not necessarily have a favorable Alexa rating. It does not mean that they should not be considered. It’s simply a measure of traffic, and that’s it. Don’t miss out on what they have to offer.

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

5. Reputation:

There are several ways to assess a lender’s reputation. Talking to friends, family and associates, of course, is one way. Another method is to see whether or not the potential lender is a member of the Better Business Bureau (BBB at BBB.Com), and whether 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 participates in the “BBB at line”. , along with a history of complaints and the final resolution of each complaint.
2. The report also sets out the overall rating they give the lender. Remember what we discussed earlier, that popularity isn’t everything? Here is a good example. You’d be surprised how many “popular” lenders can, in fact, have a fairly lengthy BBB Reliability Report filled with a variety of complaints.
3. Again, just use your good common sense and consider reputation along with all other factors.

Also, if you see something 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 form:

Fill out a “short form” application online, and within minutes, several competitive loan offers could come your way.

1. Consider the application in short, when evaluating the lender. Is it really short or are they asking you for too much information?
2. You are expected to share some basic information about yourself, such as your name, phone number, salary information, etc., but never reveal anything you feel is too personal or compromising, such as a social security number, credit card numbers, etc.
3. Does the short form 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 form is arduous and complex, what does that tell you?

So, assess your comfort level with the context of each lender’s brief online application.

7. Points, Charges, Terms and Rates:

After completing the short online form, potential loan offers will come 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’re evaluating… These are the dollars and cents of your preliminary loan offers.
3. Get various 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?
5. Check out the current rates and see how these offers compare. We have a RateWatch set up on our website, or you can find other resources from any search engine.

8. Communications:

After you’ve gotten several loan offers, it’s time to talk to your potential lenders on the phone.

1. Do not fear this process. Remember, you are the purchaser of this product and you are in the driver’s seat. Think of it like an interview, and you are in charge. Ask some good questions and see if you feel comfortable with the formation of the relationship.
2. How does the lender call you on the phone? Is this someone you feel like 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 or 4 lenders, and then take a break and review what you’ve learned.

Use your gut 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. Always remember to seek good advice from those you trust and never turn your back on your own common sense.

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