What is the difference between a broker and a lender?
It may not always be clear if you are working with a lender or a mortgage broker. The difference between the two: Brokers match you with the right lender and loan from many different banks and options. Lenders make the loan themselves but often have fewer products available than a broker. Be prepared to negotiate with brokers as well as lenders to ensure you get the best deal.
It may not always be clear if you are working with a lender or a mortgage broker. The difference between the two: Brokers find a lender and loan for you. They serve as a matchmaker between you and the lender. A broker does not actually fund the loan but uses the information you have provided to find a lender that can provide the most appropriate loan. Lenders make the loan themselves. Some financial institutions operate as both lenders and brokers. Be sure to ask whether the person you are working with is a broker. It is important to know the difference between lenders and brokers because brokers are usually paid a fee that is in addition to the loan origination or other standard fees. Most broker advertisements do not include the word “broker.” These fees are passed on to you, the borrower. A broker’s compensation may be in the form of “points” paid at closing or as an add-on to your interest rate, or both. You should ask each broker you work with how he or she will be compensated in
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