At first, it might seem tricky to differentiate a mortgage broker vs lender. After all, both provide mortgage loans. While both brokers and individual lenders can help you with the same service, there are some important differences homeowners should be aware of.
Here is a basic guide to the difference between direct lenders and mortgage brokers:
A mortgage broker connects borrowers to their lenders, while the mortgage lender - a bank or financial institution - deals directly with the borrower. Brokers can help you with comparison shopping for different rates and facilitate the application process. They look for different prodocts and programs that they know will benefit you for your specifit need. At La Belle Mar Realty our agents try to connet the buyers with Mortgage Brokers who may already be an expert in your needed loan or government helping hand programs.
Working with a mortgage lender directly means you are in full control of every step of the journey - and any associated hassle. At La Belle Mar Realty our agents make sure that you understand any of the little things that you may find confusing as a liaison with your mortgage broker.
Brokers are usually paid on a fee-based schedule, while lenders make their money through a variety of different fees and charges. Origination fees and interest are major examples of how lenders are compensated. If you have a very high FICO score and a very solid income flow your best bet is to go directly to a bank or financial institution although they can only offer you the product that they have available at the time. A Mortgage broker will look at many venues to see what could be available to better your chances at a lower interest rate or government help to buy your dream home.
Choosing between a mortgage broker or a direct lender depends on a number of factors and personal preferences. A broker can be the more convenient choice for many borrowers, as they handle the process of contacting different lenders to find a good fit. However, for those who want full control of the homebuying process, going straight to the bank might be a better choice. What ever your choice, La Belle Mar Realty and their agents will work with you to facilitate all facets of your transactions.
One thing to keep in mind is some lenders work exclusively with mortgage brokers, and some brokers are exclusive with certain lenders. This could mean working with a broker may limit your choices of lender and vice versa.
However, if you place a high value on convenience, a mortgage broker can save you significant time and effort in the mortgage process. If you prefer contacting each direct lender to crunch the numbers yourself, skip the broker and work directly with a bank or institution of choice.
The thing to know is whether you work with a mortgage broker or direct lender or a private lender you will always be able to work with one of our experienced realtor associates that can help you define how and who would be a good fit for your loan. Call me Maria Casas Qualifying Broker of La Belle Mar Realty at 786-953-7807 or 786-991-7770 for a private consultation and we can move forward from there....
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