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

A mortgage broker and a lender both work to provide individuals and businesses with mortgages, but their roles in the process are different. A mortgage broker is a middleman who serves as a go-between for the borrower and the lender. A mortgage broker typically works with a variety of lenders, and they help the borrower to find the best loan terms and rates based on their needs. A mortgage broker will assess the borrower’s ability to pay and match them with lenders that are willing to lend to them. They also provide advice on the best loan terms for the borrower. On the other hand, a lender is an institution that provides the funds for the mortgage loan. The lender is the one who will ultimately decide to approve or deny the loan and will be responsible for the repayment of the loan. The lender will assess the borrower’s creditworthiness and take into account their debt-to-income ratio, employment history, and other factors. Additionally, the lender will set the terms and interest rate for the loan amount they are willing to provide. Overall, a mortgage broker will help a borrower find good loan terms, while a lender will provide the funds for the loan and set the terms for repayment.

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