At first, it might seem tricky to differentiate a mortgage broker vs lender. After all, both provide mortgage loans. While both brokers and individual lenders can help you with the same service, there are some important differences homeowners should be aware of.
Here is a basic guide to the difference between direct lenders and mortgage brokers:
A mortgage broker connects borrowers and lenders, while the mortgage lender - a bank or financial institution - deals directly with the borrower. Brokers can help you with comparison shopping for different rates and facilitate the application process.
Working with mortgage lenders directly means you are in full control of every step of the journey - and any associated hassle.
Brokers are usually paid on a fee-based schedule, while lenders make their money through a variety of different fees and charges. Origination fees and interest are major examples of how lenders are compensated.
Choosing between a mortgage broker or a direct lender depends on a number of factors and personal preferences. A broker can be the more convenient choice for many borrowers, as they handle the process of contacting different lenders to find a good fit. However, for those who want full control of the homebuying process, going straight to the bank might be a better choice.
One thing to keep in mind is some lenders work exclusively with mortgage brokers, and some brokers are exclusive with certain lenders. This could mean working with a broker may limit your choices of lender and vice versa.
However, if you place a high value on convenience, a mortgage broker can save you significant time and effort in the mortgage process. If you prefer contacting each direct lender to crunch the numbers yourself, skip the broker and work directly with a bank or institution of choice.
I am an experienced Real Estate Professional who has anchored rich relationships within the Greater Cincinnati and Suburban Area Regions. I analyze the market multiple times throughout the day in order to optimize the search criteria of my clients. The knowledge and experience I have attained over the years has led to thousands of lives to being positively impacted through purchasing and selling real estate. My dynamic commitment to the success of others has allowed me to help many individuals and families realize their dreams. Wouldn't you want to be Real Satisfied with the service you receive?
Collaborating with Coldwell Banker West Shell, we possess the technology and other remarkable industry-leading resources to help you connect with the best possible property for you. We have your best interest as our TOP PRIORITY!
My extensive history in Management within Butler, Warren, and Hamilton counties empowers you, my client, to benefit from the richness of the diverse markets and resources that are an integral part of the real estate relationship.
I desire to be in sync with your goals. YOU are my focus. YOU are my business.
