Tonton,

In some of the answers below, it's correct that an upfront mortgage broker will negotiate a price with you and show you what they will charge you. But in reality, this doesn't mean that you will get the best deal. You want a true mortgage professional that will not only be very knowledgeable, but someone that communicates very well, is very responsive in returning e-mails and phone calls, etc,etc. In my honest opinion, many upfront mortgage brokers are just average or good. They use part of this as their way to sell their services to the consumer, thinking that they are getting a great deal because of the transparency issue. I have taken 5 loans away from upfront mortgage brokers in the past, because once the client applied with them, much of what I mentioned above, the loan officer started to show their true colors. To me, it comes down to excellent service and not just because I gave you the best deal. It's like saying the Mercedes or BMW would sell their top line of cars for half price. Why would they when they are offering the best of everything. I am not expensive, but I won't be the cheapest, because I am very good at what I do. This might sound like I am selling myself... but I am just trying to make a point. You get what you pay for in most cases.

On another note, you can still give wholesale pricing as a mortgage banker. The mortgage banker can give the same pricing as a broker. We also deal with many investors, we just underwrite the files in-house and close them in-house. A mortgage broker can't do this.

If you have any other questions, please don't hesitate to call me.

thanks,
jeff

Jeffrey J. Belonger
Area Manager/Branch Manager

Infinity Home Mortgage Company, Inc
Processing : 800-587-2762
Cell : 609-440-5133
Fax : 775-361-6619

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"The referral of my service to your friends and family is the highest compliment I can receive."

The term "Upfront Mortgage Broker" is used for an assn and this is part of their commitment:The broker 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 percent 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. If the broker charges a loan processing fee, the amount will be disclosed to the customer, regardless of whether it is paid directly to the broker or to a third party.
On third party services, such as an appraisal, ordered by the broker but paid for by the customer, the broker will provide the invoice from the third party service provider at the customer’s request. Alternatively, the broker may have the payment made directly by the customer to the third party service provider.

which all of this is required to be disclosed on the GFE anyways, so I see no need for it.

Hi Tonton,

Mortgage brokers can obtain fees up front (directly from borrower to broker) as a fee for their service or they can be compensated by the lender by what is called a yield spread premium. However, when the lender pays the broker this fee the borrower typically is charged a higher rate of interest (but they do not pay an up front fee to the broker). Each situation and broker/lender relationship is different.
Contant me and I will be able to answer all of your questions

Best Regards and Good Luck,
Nancy

Tonton,

A broker can do it this way.. they can also give your a higher rate with no upfront fees.