What is an Honest Mortgage Broker?
Joe Metzler, MLO, MMS, in Minnesota & Wisconsin. NMLS #274132

It's pretty simple. When looking for a mortgage loan in MN, or WI, you want to get a great deal with no games. That's what you get with us. We keep it simple! Slick advertising is not our game. We are a top MN lender, and it's not just because of our LOW interest rates. Its because we offer the whole package! We provides fully automated processing, with all of the latest instant approval systems. We even give you instant Email notification for each step of your loan! 

How does an Honest Lender differ vs. a typical Mortgage Broker?

There are major differences between a  honest Lender and the average  mortgage broker:
 
Honest lenders disclose their fees to customers in advance and in writing, and disclose the wholesale prices (rates and points) passed through from lenders. Customers of honest lenders pay the broker's fee plus wholesale loan prices.  In contrast, conventional mortgage brokers and lenders add a markup to the wholesale prices, and quote the resulting “retail prices” to customers.  Most standard lenders reveal their markup only in required disclosures after an application has been submitted.
 
The honest brokers interests are fully aligned with their customers. They can  thus represent borrowers in shopping for loans.  In contrast, brokers shopping the market are often in a conflict situation with customers.  For example:

  • The loan type that best meets the customer's needs may not be the one that allows the largest markup for the broker
  • Brokers may profit by ignoring customer requests to lock the rate/points, putting the customer at risk.
  • Brokers often increase their markup on customers who allow the rate/points to float by not giving them the best available rate (the float rate) when the loan is finally locked.

Honest brokers credit customers with any rebates they receive from third parties. Mortgage brokers and lenders often receive rebates from lenders or concessions from home sellers.  Honest lenders credit customers for any such payments that would otherwise increase the bank,  lender, or broker’s fee beyond what was agreed upon.  In contrast, banks, brokers, and lenders may or may not credit customers for payments from third parties, depending on the circumstances. 

Why should a consumer choose a local honest lender?

Easy, transparency. For most people, a home is the biggest investment they will ever make. However, few people do the research necessary to make a good buying decision. The home-purchase o refinance process is extremely confusing for most people. With a little bit of homework, and some advice from dedicated true professionals, you can make this a little easier on yourself. There is no substitute for taking the time to educate yourself before you buy or refinance a house, which typically costs you 25% to 40% of your gross income! Buying or refinancing your home in Minneapolis, St Paul, Rochester, Duluth, Madison, Milwaukee, or all of MN or WI shouldn't take you days or weeks to find a lender. The honest lender gives you immediate comfort you've found the best lenders in the mortgage business.

The basic nature of the mortgage process allows brokers and lenders the opportunity to “mark up” the interest rate and/or increase the fees. The net result is many consumers end up paying more than they should for a mortgage loan. One of the reasons that conventional mortgage brokers conceal their fee as long as possible is a concern that consumers don't fully appreciate the value the brokers provide.  Because consumers dealing with honest mortgage lenders agree on a fee in advance, it is important that consumers also understand exactly what they are getting for their money, and what it might be worth.

When dealing with an honest lender, you are assured of fair treatment because of pricing transparency, you get access to wholesale interest rates posted by lenders, you get the benefit of the lenders’s expertise and contacts in shopping multiple lenders for the best deal.

Commitments of a typical honest Mortgage Broker, Bank, or Lender

  • The lender will endeavor to act in the best interest of the customer at all times.
  • The lender will establish a price for services upfront, in writing, based on information provided by the customer.
  • The price may be a fixed dollar amount, a percentage of the loan, an hourly charge for the broker's time, or a combination of these.
  • The price or prices will cover all the services provided by the broker.  This includes loan processing, for which customers always pay a broker or lender.
  • On third party services, such as an appraisal, ordered by the lender but paid for by the customer, the lender will provide the invoice from the third party service provider at the customer's request.  Alternatively, the lender may have the payment made directly by the customer to the third party service provider.
  • Any payments the lender receives from third parties involved in the transaction will be credited to the customer, unless such payments are included in the broker's fee.
  • The lender will use his best efforts to determine the loan type, features, and lender services that best meet the customer's needs and to find the best wholesale price for that loan.
  • When directed by a customer who has met lender lock requirements, the lender will lock the terms (rate, points, and other major features) of the loan, and will provide a copy of the written confirmation of the rate lock as soon as it has been received from the lender.  At the same time, the lender will guarantee all fee charged.
  • If a customer elects to float the rate/points, the lender will provide the customer the best wholesale float price available to that customer on the day the loan is finally locked

 


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Mortgages Unlimited Minnesota
33 Wentworth Ave E, St Paul, MN 55118
(651) 552-3681

Member, Minnesota Mortgage Association

Search for homes for sale - for free

Mortgages Unlimited, Inc. NMLS # 225504. Joe Metzler NMLS # 274132



 
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