Up Front Mortgage Lenders

Why An Upfront Mortgage Lender?

Home loans and mortgages are big business. The mortgage industry is a multi-billion dollar a year industry, and when you have that much money involved, there's bound to be some "bad apples" trying to get involved.

There are a lot of players in the mortgage business. The government, large banks, private investors, and small brokerages. With so many options on the market, how is a person to know what the best choice is?

There is no clear cut answer, except that it's in your best interest to deal with an "upfront" lender or broker.

In most states, a high school education isn't even required to become a loan officer. Most loan officers, to put it bluntly, are more sales people then they are financial consultants. Their income is directly related to how much money they can make off of YOUR loan.

And to be honest, there is nothing wrong with that, until you run into loan officers or brokerages that have unethical practices.

When a loan officer writes a loan, they get quoted "wholesale" loan prices from various lenders. They then add in there own fees with points, which is raising the interest rate, or fees such as processing fees and application fees.

This holds true for most mortgage brokers, and again, there's nothing wrong with that. They're in business to make money just like everyone else.

The real problem that you need to worry about are hidden additional points and fees that suddenly pop up during the loan closing. It's not uncommon of hearing stories of a family ready to move into their new house, only to find out at the closing that they're spending several thousand dollars more than they previously thought.

Upfront lenders and brokers are required to reveal the total cost of the loan to you, before you ever sign any paperwork. Unlike other loan providers, you don't have to worry about any hidden fees. With this knowledge you can shop around for the best loan with confidence.