An Upfront Mortgage Broker is one who selects to conduct business in a direct and fully transparent way. The major differences between a UMB and a conventional mortgage broker are:
1. UMBs provide an advance notice of their fees to their customers as well as the wholesale price charged to the lender. The broker's fee in addition to the wholesale price of the loan is paid by the customers.
2. UMBs interests are associated with that of the customer's needs. They can act as representative of the consumer in scouting for loans. On the other hand, a conventional broker has a different interest with the customer.
3. Third party rebates are credited by UMBs to their customers . Customers are credited for any payments that would increase the fee of the broker to more than the agreed amount.
Dealing with a UMB shifts mortgage price shopping to broker shopping . When retained, scouting the market becomes the UMB's job.
Price quotations may be requested upon interview but no decision should be based on it. A UMB's price is not likely the best price because they are based on honest opinion.
Service fee is negotiated by UMBs at the beginning. Once an agreement is reached, no changes is allowed. Protection of consumers is always guaranteed.
Aside from the price, there are other considerations in choosing a UMB. The qualification and experience of the UMB should also be considered. On the average, service fee of brokers amount to 2% of the loan, although they charged smaller on higher loans and vice versa.
Transaction details may be required by UMBs before they charge a price. Questionnaires or interviews provide these information. The process can be facilitated by lenders through equipping themselves with prior information about the deal.
UMBs deserve upfront customers. Upfront customers do not get a loan application with more than one broker.
Broker as well as the time of the consumers is wasted and unnecessary. Shopping for brokers is not wrong but when a broker has been chosen, it is ethical to remain with the broker. When the chosen broker could not provide the full service, the customer must end the relationship before dealing with another broker.
A state listing of UMBs may take time. Rejecting the offer of the customer is unlikely especially when there is realization of the full appreciation of the broker's value as far as providing and quoting a significant price.
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
