Understanding The Difference Between Mortgage Lenders And Mortgage Brokers
A major and complicated aspect of the mortgage process could be the process of identifying all the different types of lenders who deal with refinancing and home loans. Direct lenders are mortgage brokers, retail lenders and portfolio lenders, as well as wholesale lenders, correspondent lenders, and many more.
Many people simply jump into the process, and then search at what they believe to be fair terms, without thinking about what type of lender that they're working for.
However, if you wish to ensure you're getting the most favorable deal, you are seeking a large loan, or have other situations to consider, knowing the different kinds of lenders you'll encounter can be an important aid. You can also visit sumerhomeloans.com and find reliable home mortgage lenders.
Mortgage Lenders vs. Mortgage Brokers
An excellent place to begin is to understand the differences between mortgage brokers and mortgage lenders. The mortgage lenders are, in essence they are, the lenders who actually offer the loan and the cash to purchase homes and refinance an existing loan.
They set certain requirements that you must satisfy in terms of creditworthiness and financial capacity to be eligible for a loan and they determine their mortgage interest rates as well as other loan conditions accordingly.
Mortgage brokers, on the other hand, don't actually make loans. What they do is work with multiple lenders to find the one that offers you the best rates and terms. When you get the loan, you are borrowing it from the lender, not from the broker, who is simply acting as an agent.