Choice is Power When Shopping For A Mortgage

Posted on Wednesday, November 2nd, 2011 at 12:40pm.

When it comes to shopping for a mortgage, it pays to get referrals from  people who have a good relationship with a respected lender.  Talk to your bank, then shop around and visit at least three lenders.  Compare rates, fees and service.  Things on the lending front seem to be changing all the time, so get advice from people in the business, like myself!  Here is a good article I found, enjoy!

 Don't rely on lead generation sites for accurate interest rate and loan fee combinations

 By Jack Guttentag

Inman News™

 Share ThisMortgage lead generation websites (henceforth LGSs) have become a major part of the home mortgage distribution system. LGSs collect information from potential borrowers visiting the sites, and sell it to mortgage lenders. There are dozens of LGSs, perhaps hundreds; I haven't seen an exact count. Among the largest LGSs: LendingTree.com and LowerMyBills.com.

 How lead generation sites work

 An LGS attracts borrowers to its site primarily by promising to provide mortgages at attractive rates with one-stop shopping.

 A prospective borrower visiting an LGS fills out a questionnaire covering the loan request, property, personal finances and contact information. The completed questionnaire is the lead that is sold to lenders.

 Each lender participating in the site fills out a form indicating the features of loans they are looking for. This "filter" covers credit score, loan size, loan-to-value ratio, property ZIP code, type of property, and other factors. The LGS sells a lead with a given set of features only to lenders who have indicated that they want those features.

 In general, LGSs sell leads to the lenders who will pay the most for them, subject to volume-based discounts. The sites commit that they will not sell the same lead to more than three or four lenders, but skeptics abound.

 Lead generation sites from a lender perspective

 Lenders view LGSs as one more way to market themselves. They can advertise online and in a variety of media, hire more loan officers to solicit business from real estate sales agents, invest in affiliated business arrangements with title agencies or others that will refer customers to them -- and they can buy leads.

 While each approach has its advantages and disadvantages, for many lenders the purchase of leads appears to be a relatively attractive option for some part of their marketing budget.

  Don't rely on lead generations sites alone to do the shopping for a mortgage for you, call today for a list of good lenders in our area who can meet with you and provide you the service you are looking for.

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