A mortgage broker acts as a sort of matchmaker. They will serve as a point of contact between you and your lender, collecting the documents required for inquiry and approval. Whereas, a direct lender finances mortgages using their own funds. Credit unions, banks, and large lenders are examples of direct lenders.
Comparing loan alternatives is made simple by mortgage brokers. Your financial details are given just once. To obtain a loan with favorable terms, they will shop for your loan among the lenders they know. Whereas with a direct lender, you are only able to choose from their own line of items. The majority of lenders permit applicants to contact them directly rather than through a mortgage broker.
Loan origination fees are typically used to pay mortgage brokers. On the other hand, direct lenders are paid through a range of fees and levies.