I'm selling approximately 40 houses a year and I've yet to have an "Internet Mortgage" close. Most of the time I can convince my clients to do some comparative shopping and they always find a better rate and/or less junk fees by working with local bank or brokers. Every once in a while, a client becomes defensive when I suggest they shop around for a mortgage and I let them find out the hard way. Unfortunately, more than just the buyer can get burnt when a deal doesn't close. Today I had to put a house back on the market because the "Internet Bank" didn't do its job in qualifying a borrower.
The U.S. Department of Housing and Urban Development recommends that you "Shop, Compare and Negotiate" when looking for the best mortgage. (See their brochure: http://www.hud.gov/buying/booklet.pdf) This brochure has a worksheet for comparing mortgage programs but I like the one I designed better. It's an Excel Spreadsheet and it is formatted the same as the traditional 'Good Faith Estimate' that is issued by lenders to illustrate all the details of their mortgage offering. To obtain a copy of my spreadsheet, drop me an e-mail at MShelsby@gmail.com .