Posted on: 22nd Oct, 2013 02:27 am
What is the difference between lender and broker? Who should you go to first to get the loan?
Hi Guest,
The lender is the person who will finally give you the loan. The broker is an agent of the lender. He will have contacts to various lenders. Depending upon your needs and requirements, he will take you to the best lender.
Take care
The lender is the person who will finally give you the loan. The broker is an agent of the lender. He will have contacts to various lenders. Depending upon your needs and requirements, he will take you to the best lender.
Take care
The money for the mortgage is provided by the Lender at closing.
The Lender may or may not also take and process the mortgage application. The Lender underwrites the mortgage whether they take the mortgage application or a Broker takes the mortgage application and submits the loan documentation to the Lender for underwriting.
The Broker never underwrites the mortgage documentation for approval nor does the Broker ever provide the mortgage money at closing.
The Broker takes the mortgage application and works with you. They submit the loan documents to one or more Lenders for approval.
There is no correct answer as to which one to go to first. Any given Lender could have the best rates and terms compared to any Broker and vice versa. Some Lenders do not work with Brokers and some do.
Shop with as many of each as you want to. Shop and compare.
The Lender may or may not also take and process the mortgage application. The Lender underwrites the mortgage whether they take the mortgage application or a Broker takes the mortgage application and submits the loan documentation to the Lender for underwriting.
The Broker never underwrites the mortgage documentation for approval nor does the Broker ever provide the mortgage money at closing.
The Broker takes the mortgage application and works with you. They submit the loan documents to one or more Lenders for approval.
There is no correct answer as to which one to go to first. Any given Lender could have the best rates and terms compared to any Broker and vice versa. Some Lenders do not work with Brokers and some do.
Shop with as many of each as you want to. Shop and compare.
The lender is actually the person who is going to provide you the loan that you want to take out. On the other hand, the broker is the agent of the lender. If you are obtaining a loan for the first time, then you may not know trustworthy lenders from whom you can get your loan. As such, the broker can help you out in this. Since he knows several lenders, he will be able to help you get a good lender depending upon your requirement.
You may or may not trust a Lender.
However, you may or may not trust the Broker either.
The best way to trust a lender or broker is perhaps get referred to one by a friend.
The one to trust more often than not is the Loan Officer you will be working with, not which lender or broker he works for.
So, get referred to someone by someone you know or shop and compare.
However, you may or may not trust the Broker either.
The best way to trust a lender or broker is perhaps get referred to one by a friend.
The one to trust more often than not is the Loan Officer you will be working with, not which lender or broker he works for.
So, get referred to someone by someone you know or shop and compare.