AgentMortgage

Choice is power when shopping for mortgage

Don't rely on lead generation sites for accurate interest rate and loan fee combinations
Published on Oct 31, 2011

Mortgage 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...

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