Mortgage Broker vs. Direct Lender

  • 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.

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