What are the differences between a mortgage broker and a lender?

Mortgage brokers and lenders play an important role in providing financing for home purchases in California. The two are different however, and understanding the differences is important when making mortgage decisions. A mortgage broker is an intermediary between a borrower and a lender. The broker helps a borrower find the best loan rate and terms based on their individual needs. The broker will shop around at different lenders to find the most suitable loan, usually offering advice and guidance throughout the process. A lender is the entity that actually provides the loan. This could be a bank, credit union or even a private mortgage lender. A lender will assess a borrower’s creditworthiness, income and other factors to determine whether a loan should be approved. They are also responsible for setting the loan rate and collecting mortgage payments from the borrower. Therefore, a mortgage broker helps a borrower find the best loan available and a lender provides the loan to the borrower. It is important for borrowers to do their research when deciding whether to use a mortgage broker or lender in order to make the best decision for their situation.

Related FAQs

Are there any mortgage programs for first-time homebuyers?
What is the role of the Appraiser in the mortgage process?
What is the difference between an open-ended and a closed-end mortgage?
What is a mortgage-backed security (MBS)?
What is a HARP mortgage?
What is a “no cost” mortgage?
What is a bridge loan?
Can I get a mortgage if I am self-employed?
How can I calculate my monthly mortgage payments?
What is the difference between fixed-rate and adjustable-rate mortgages?

What are the differences between a mortgage broker and a lender?

Related FAQs

Related Blog Posts