There are a lot of good websites on the Internet where people can go if they want to find a loan.  These sites allow you to fill out several online forms, after which you are contacted by several different lenders.  But what is the point of these sites, really?

Basically, these loan sites are lead generation sites.  When they collect your information via their web forms, they are assembling what is known as an Internet mortgage lead.  A "lead" is information that may lead to a sale.  Therefore, a lead generation site collects mortgage leads that are then sold to lenders as potential customers.

When you submit your information into one of these sites, three different parties benefit.  You, of course, get your pick of different loans, allowing you to make sure you get the best deal for you.  The site where you entered your information earns money by selling your information to lenders.  And the lenders benefit by getting potential customers: people who have already expressed interest in getting a loan, and whom the lenders don’t have to track down on their own.

Of course, the drawback is that if you decide to go with one of the first lenders that calls, you may have to deal with the remain half-dozen or so other lenders who have your information.  But for most people, that’s a small price to pay for the best possible rate on a loan!

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