Facebook Twitter Instagram
    Mortgage.info
    • First Time Homebuyer
    • Loan Programs
    • VA Programs
    • Refinancing
    • Beyond the Mortgage
    Mortgage.info
    Home»Lenders»Know the Difference Between Mortgage Brokers and Mortgage Lenders
    Lenders

    Know the Difference Between Mortgage Brokers and Mortgage Lenders

    JustinMBy JustinMJanuary 31, 2018No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    These days, home buyers or mortgage borrowers can easily get information with just a click of a button. Accessible resources are all over the internet if you just know where to look.

    While these resources are very helpful to a lot of home buyers, it’s still vital that borrowers have face-to-face interaction with mortgage industry professionals.

    Throughout your home buying process, you get to meet these professionals. As you go along with every step, they will help make your homeownership journey a little bit easier.

    As experts in their field, they surely have substantial information up their sleeves. Other than that, they will lead you towards the right direction until you reach your goal of becoming a homeowner.

    Since information is power, home buyers should be familiar with the different mortgage industry players so that they will know who to turn to for help. When it comes to these professionals, home buyers commonly confuse one from the other.

    This is especially true for mortgage lenders and brokers. In order to understand their differences, here is some of the key information about each one.

    [sc_content_link label=”Become a homeowner today.”]

    Mortgage Brokers

    Mortgage brokers act as an agent that connects a borrower to mortgage lenders. They will look into your financial profile in order to assess which lender is a perfect match to your current situation.

    One important advantage for borrowers seeking help from lenders is that they can match you with a network of mortgage lenders you can choose from. Once you get matched with a lender, the mortgage broker will now be out of the picture.

    Mortgage Lenders

    Mortgage Lenders are professionals who are responsible for lending or [sc_content_link label=”giving home buyers funding”] they need to buy a home through a mortgage. Lenders either provide financing directly from them or connect through a third-party organization or company.

    There are different types of lenders depending on how borrowers get in contact with them or how the loan is acquired. Among these lenders are retail, wholesale, and correspondent lenders.

    Retail lenders, also known as direct lenders, make transactions directly to individual borrowers or consumers. True to its name, retail lenders can provide direct funding to borrowers.

    On the other hand, a wholesale lender funds mortgages in bulk through a mortgage broker. The broker gets a number of loan applications then sells them to a wholesale lender.

    Mortgage brokers are not the only link that borrowers will have to wholesale lenders. A lot of banks and credit unions also work closely with them.

    Finally, correspondent lenders have combined characteristics or a mortgage lender and a mortgage broker. They can fund a mortgage directly and they can also connect borrowers to other lenders.

    There are types of lenders who work with borrowers after their mortgage is funded. These are portfolio lenders and mortgage bankers.

    Portfolio lenders get fund from their customers’ deposits in order to fund mortgages. They may either be community banks, loan companies, or credit companies.

    Mortgage bankers, on the other hand, borrows funding from banks in order to fund the mortgage and pay it back when it’s sold.

    Purchase your home with ease

    The expertise among mortgage lenders, mortgage brokers, and other mortgage and real estate professionals will help you get the best practices on how to go through with each step.

    Through these professionals, your home buying experience is sure to be a lot easier to handle. In the end, you’ll finally become the homeowner you always dreamed of.

    [sc_content_link label=”Talk to our mortgage experts.”]

    JustinM
    + posts
    • JustinM
      https://mortgage.info/author/justinm/
      Homeownership Costs Every Home Buyer Need to Prepare For
    • JustinM
      https://mortgage.info/author/justinm/
      Currently Renting? Here's Why You Should Get Renters Insurance
    • JustinM
      https://mortgage.info/author/justinm/
      Interested in Getting Home Improvement Financing?
    • JustinM
      https://mortgage.info/author/justinm/
      Here's Why Buying a Home is Still Better Than Renting
    Mortgage mortgage basics mortgage brokers mortgage lenders mortgage professionals mortgage tips
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    JustinM

    Related Posts

    Pros and Cons of Using a Credit Union for a Mortgage

    April 27, 2021

    Finding a Lender That Doesn’t Have Overlays

    January 20, 2020

    Should You Consider the Realtor’s Preferred Lender?

    October 28, 2019
    Mortgage.info
    © 2023 Mortgage.info Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.