The Advantages of an Upfront Mortgage Lender

If you've ever bought a home, or even considered doing so, you probably know that there are lots of mortgage lenders out there. You may have also found out that some have better reputations than others. Unfortunately, some borrowers do not find out that their lenders are not above board until it is too late – that is, until they have already closed on their homes.

When you're shopping for a mortgage, you need lenders to provide you with certain information. This includes the types of loans they offer and the fees that they you are required to pay. When shopping for a mortgage online, this information is just as important as it is if you go to a lender with an office in your home town. And that's why the Upfront Mortgage Lender program was created.

A lender is only allowed to call itself an Upfront Mortgage Lender if it meets certain criteria set forth by Mortgage Professor, a mortgage industry watchdog group. The advantages of choosing an Upfront Mortgage Lender (UML) include:

* You can quickly ascertain which loan products are offered by the lender. A UML is required to list the types of loans offered and the niches served on its website. That means that you won't have to waste time with a lender that can't give you what you're looking for.

* You won't be exposed to any unexpected fees. Members of the UML program must disclose the interest rate and all fees before you have committed to the loan. All lenders are required to provide a Good Faith Estimate to borrowers prior to proceeding with the loan, but there is no law in place that prevents them from changing these fees. Upfront Mortgage Lenders, on the other hand, must disclose fees ahead of time or risk losing their certification.

* There's no danger of getting burned by unclear rate lock requirements. A UML must make it clear to potential borrowers how rate locks work and which variables can affect them. Things they must disclose include what must be done to lock in the interest rate, what happens if the market price changes before the application is approved, and how long a rate lock will remain in effect.

* All Upfront Mortgage Lenders must disclose how their loan officers are compensated. That means that if they have an incentive to overcharge borrowers, you will know about it.

Upfront Mortgage Lenders offer borrowers the option to get a mortgage online while eliminating many of the concerns about doing so. If you're considering borrowing online to buy a home, consider a Upfront Mortgage Lender.