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A Whole Different Kind of Mortgage Broker

by Craig Romero, Mortgage Analyst,

There's a different kind of mortgage broker on the block, and they're giving conventional mortgage brokers a run for their money. With today's current economy, consumers have to be as budget conscious as ever, and it's showing in every consumer decision they make - including shopping for a mortgage.

Gone are the days where the consumer waits with baited breath as to whether or not the corner mortgage broker can find financing for the home they want to buy.

Say hello to today's new mortgage seeker; the one who has lenders competing for their business, makes educated lending choices and is making upfront mortgage brokers more popular than ever. So what is an upfront mortgage broker? The main difference between an upfront mortgage broker and a conventional mortgage broker is that an upfront mortgage broker discloses their fees to the borrower up front and in writing.

The borrower will pay the broker a fee in addition to paying the wholesale loan price. With conventional mortgage brokers, borrowers don't know the true cost of the loan until after the application has been submitted. The conventional lenders add a markup to the wholesale rate of the mortgage to make their profit. While on the surface it may seem like the prices quoted by upfront mortgage brokers compared to the quotes received by conventional lenders would not be the wise choice, don't be fooled.

The quotes you get from an upfront mortgage broker will be an accurate reflection of what you're really going to pay. Just because a conventional mortgage broker promises you the moon, does not mean that he can actually deliver it. There are other reasons that have conscious consumers choosing upfront mortgage brokers over the traditional conventional brokers.

While conventional mortgage brokers don't always have the best interests of their customers in mind, upfront mortgage brokers gain nothing by providing their borrowers with anything other than the mortgage that best suits their needs.

There are also times when mortgage brokers are given rebates by third parties. While a conventional broker may keep this rebate as a part of their profit, an upfront mortgage broker will always pass this rebate on to the borrower.

With consumers appreciating honesty and no-nonsense approaches when dealing with their lending needs, upfront broker methods may just change the face of mortgage lending forever.

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