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

Mortgage brokers and lenders are two important parties in the process of acquiring a mortgage in Washington. Both of them are involved in lending money for real estate purchases. A mortgage broker is a person who acts as an intermediary for a borrower, who finds them lenders to work with. They do not directly lend money, but instead, search for lenders that offer suitable loan terms to the borrower. A broker will then help the borrower through the application process, which includes the negotiation and completion of the loan. A lender is the party that provides the funds for a mortgage loan. Lenders can be banks, financial institutions, or private companies. They are the ones who provide the funds for the loan, set the conditions, and are ultimately responsible for repayment. The primary difference between a mortgage broker and a lender is that a broker serves as an intermediary between the two parties, while a lender directly provides the funds. Moreover, while a broker may search for lenders who can provide the most favorable terms, a lender will determine the interest rate, fees, and loan terms according to their own criteria. Therefore, it is important to understand the roles of both a broker and a lender before acquiring a mortgage in Washington.

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

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