Upfront mortgage broker
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There is a new type of mortgage broker that is gaining popularity among mortgage borrowers. These upfront mortgage brokers cater towards today’ ever growing budget concerns.
Mortgage-listings.com writer, Craig Romero identifies and explains the benefits of an upfront mortgage broker, in his article, “A Whole different Kind of Mortgage Broker.”
“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.”
It used to be that the mortgage seeker, or “borrower,” had to wait for a broker to find time in order to offer him or her a quote. Now, the borrower has the broker competing for his or her business.
The main feature that distinguishes an upfront mortgage broker from a conventional mortgage broker is that an upfront broker discloses their fees, “upfront,” 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.”
Quotes received from an upfront broker will be an accurate depiction of what you should expect to pay. Since it is in writing, it acts like a contract.
On the other hand, conventional mortgage brokers can basically promise you anything, but that does not mean that he or she will fulfill that promise.
Upfront quotes are not the only thing that has potential mortgage borrowers attracted to upfront brokers over 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.”
It is obvious that borrowers appreciate honesty and a no-nonsense philosophy of business. So, as a result, upfront mortgages will continue to gain popularity and “may just change the face of mortgage lending forever.”
