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Mortgage Shopping, Incognito
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The site requires users to enter three pieces of information: the loan amount, the property's value and its Zip code. Users can toss in a few more variables, including specifying whether they're hoping to buy a condo or a detached home, whether they would prefer a 30-year, fixed-interest rate loan or an adjustable-rate mortgage.
The site then displays a list of any lenders offering quotes on the loan.
But that's where anonymity ends. To find out whether a borrower qualifies for the rate, he must fill out an application, providing personal information to the lender.
"It's easy, reliable, accurate and fast -- there's no bait-and-switch," said Dan Welbaum, chief marketing officer for Mortgagebot.
Zillow's Mortgage Marketplace page also doesn't ask for identifying information other than an e-mail address.
Instead, Zillow relies on the honor system, counting on users to fill in accurate information about their personal financial profile, such as their credit score -- unlike sites that ask for a Social Security number to run the credit check themselves -- annual income, money in savings and so on.
Zillow users are also asked to enter how much money they want to finance, as well as preferences on their loan type.
The site broadcasts this information to its roster of more than 3,300 participating mortgage brokers and lenders, which then e-mail loan rate quotes.
After selecting a broker, borrowers submit a formal application with personal information.
Zillow says loan queries will garner six rate quotes, on average, with 97 percent of all queries receiving at least one rate quote.
With several brokers vying for a sale, it's not hard to imagine that some might have incentive to low-ball their quotes in hopes of luring business.
Zillow, which makes its money by selling ads on the site, encourages participating mortgage brokers to "stick to your quote."
