Questions On Mortgage Broker And A Mortgage Lender Essays

1684 Words May 3rd, 2016 7 Pages
If you’re reading this blog post, there’s a very good chance you’re in the market to purchase your very first house. First – congratulations. Second – just breathe. Though buying a house is very exciting, it can be overwhelming at the same time.
There is a lot of terminology you may find confusing. For instance, you may be wondering what exactly a mortgage broker is and how they can help you on your home-buying journey.
A mortgage broker is a bit like a headhunter. Instead of working with you to match you to the perfect employment opportunity, they work on your behalf to connect you with the right lender for your personal situation.
What’s the Difference Between a Mortgage Broker and a Mortgage Lender?
Great question and we’re glad you asked!
Lenders and brokers do have some things in common, namely they can both help you better understand the mortgage process and determine your financial situation based on documentation you provide. Beyond this, however, there are some basic differences between mortgage brokers and direct lenders that you should be aware of.
Number of Lending Sources
Direct lenders (such as your local bank or credit union) are themselves a single lending source, but brokers may represent several lending sources. For this reason, brokers act as a liaison between you and various lenders. This allows you to easily shop around to find the best rates. It can be time consuming applying to different lenders yourself, so working with a mortgage broker saves you…

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