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

A mortgage broker and a lender are both important players in the mortgage process, but there are some key differences between the two. A mortgage lender is the company that actually provides you with the money that you need to purchase a home. The mortgage lender gathers information about your finances, credit score, and property, then makes a decision on how much money they are willing to lend. The lender is responsible for collecting the payments that you make each month and applying them to the loan. A mortgage broker, on the other hand, works as an intermediary between the lender and the borrower. The broker acts as a middleman in the process, helping to match borrowers with lenders that are most likely to approve them for a loan. They also provide valuable advice and assistance during the mortgage process. In Virginia, a mortgage broker is required to be licensed by the Virginia Bureau of Financial Institutions, and the lender must follow applicable state and federal laws. Additionally, the broker must provide services only in the best interests of the borrower. The differences between a mortgage broker and a lender are significant. It is important that you thoroughly understand the roles of each in the mortgage process before you begin the process of buying a home in Virginia.

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