Have you ever wondered why there’s a distinction between mortgage brokers and mortgage lenders? Today, we'll discuss the different responsibilities of each position so you can make an informed decision when shopping for a new home!
What is the Difference Between a Mortgage Broker and Mortgage Lender?
A mortgage lender is a financial institution or bank that provides direct loans to borrowers. On the other hand, a mortgage broker acts as an intermediary between borrowers and multiple lenders.
In other words, brokers help match borrowers with lenders who offer suitable loan options. So, what does this mean for you, when buying a home?
Mortgage Brokers vs. Mortgage Lenders
Mortgage brokers have access to a variety of loan products from different lenders, which offers borrowers more options and, potentially, better terms.
However, mortgage lenders offer only their own loan products and typically work with borrowers directly. Lenders handle loan origination, underwriting, and funding processes. This cuts down on middle-man costs, potentially saving the buyer fees.
Mortgage Help for Your Family
Both mortgage brokers and mortgage lenders play crucial roles in the home loan process, but their functions and relationships with borrowers differ.
At the Mortgage Minds Group, we are dedicated to helping you find the home of your dreams. Begin the loan application process now or reach out to us with any questions.
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