What Is The Difference Between A Mortgage Broker and A
Mortgage Lender

The main difference between a mortgage broker and a mortgage lender: one lends money and one doesn’t. A mortgage broker uses the lender’s money to fund the mortgage. Some of the other differences include:

• Mortgage Brokers cannot charge any fees directly
• Lenders Underwrite Loans
• Mortgage Brokers have lower rates and fees
• Mortgage Brokers typically close loans faster as they have less transactions
• Lenders take on more risk

Pros of a Mortgage Broker

• Better Mortgage Rates
• Lower costs
• More personal service
• Faster process
• Mortgage brokers have networks of lenders that they use and will have a better chance at getting mortgages approved
• Should mortgage rates go down while you are in process, a mortgage broker has the option of taking you to another lender if your loan is locked as opposed to being stuck at the higher rate while in process
• Did we mention better mortgage rates?

Cons of a Mortgage Broker

• Usually no company branding (most people never heard of the company)
• What you see is what you get! Brokers cannot lower their fees (still, mortgage broker fees are lower as a whole).