Residential Mortgage Application: Up-front vs Conventional Brokers

When you are filling out a residential mortgage application, you have the option of working with an up-front or a conventional broker. Here are the differences between these two types of mortgage brokers.

Conventional Brokers

You are going to have to provide a conventional mortgage broker information about yourself before you can get any details about a mortgage. You are going to give the broker your Social Security number, your income amount and a lot of other personal information. At that point, the broker will run a credit check and give you some information about interest rates and closing costs on loans.

Up-front Brokers

With an up-front mortgage broker, you are not going to have to provide any personal information before they can give you information about a mortgage. They will tell you information about interest rates, closing costs and loan terms before they require any of your personal information. You will basically have to give them some type of an estimate as to what your credit history is, but you will not have to give them any specific identifying information about yourself. This type of mortgage broker can be beneficial because you can shop around without having to get too involved with any particular broker.

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