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Upfront Mortgage Lender
Mortgage abuses persist because most lenders do not disclose
mortgage costs, making it difficult for consumers to negotiate a
fair price. The solution: transparency.
Jack Guttentag, a retired finance professor, has identified a group
of lenders and brokers who will disclose a mortgage's actual cost
in writing and in advance. The lenders are called
Upfront Mortgage Lenders, and the brokers are
called
Upfront Mortgage Brokers.
You can find a list of Upfront Mortgage Lenders and Upfront Mortgage
Brokers on Guttentag's helpful website:
www.mtgprofessor.com.
Compared to a traditional lender, the main advantage of working with
an Upfront Mortgage Lender is transparency - clear
explanations of all costs and fees - and fewer
opportunities for mortgage tricks. Note, however, that Upfront
Mortgage Lenders do not guarantee lower prices or better service
than traditional lenders. You need to check that out for yourself.