What is the difference between a direct lender and a mortgage broker?

In the simplest terms, a mortgage broker is able to find you a favorable mortgage by submitting your loan application to their pool of possible lenders. Unlike direct lenders, mortgage brokers are able to work with banks, investment groups and other financial sources to secure you the best possible loan program. Mortgage brokers work with all the lenders you’ve probably already heard of including: Wells Fargo, Credit Unions, Bank of America, Bank of Manhattan,  and others. 

An example of a direct lender would be your bank. When you work directly with your bank, your loan options are limited to programs that your bank is currently promoting. 

Further, mortgage brokers often have access to loan programs within the banks that are not necessarily available to the bank’s customers. 

The more experience a mortgage broker has, the more contacts they will have developed within the lending community. Whether your FICO scores are in the 800’s or you’ve had a few bumps in your finances, the more contacts a mortgage broker has in the industry, the better loans they’ll be able to get. 

Because every loan application is unique, you’ll benefit by working with a local, respected mortgage broker. 

Programs available from our preferred, local mortgage brokers include:

Interest only loans

Purchase loans

Refinance of your current home

Bridge/swing loans

Investment/commercial loans

Construction

Equity lines 

Last updated on January 24, 2012 by Blake Roberts