AgentMortgage

Choice is power when shopping for mortgage

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

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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