What makes mortgage brokers different from lenders and why you would work with them.
Did you know there’s a difference between choosing a mortgage broker and a lender? Not many people do, so I want to discuss what makes the two distinct.
The fundamental difference is that a mortgage broker is not licensed to provide direct funding, while a lender or a bank will provide the necessary funds. Brokers simply put the borrowers and lenders together for a fee.
That might make you wonder why you’d work with a mortgage broker, but there are a few good reasons why. For example, let’s say you go to a big bank for a loan. They pull your credit, and for some reason, you’re denied the loan. In the worst-case scenario, pulling your credit multiple times could drop your score. You can’t use that credit report to shop around for a new lender, but if you work with a mortgage broker, you can use the same credit report with multiple lenders and banks.
Another good reason to use a mortgage broker is that we can shop around for better interest rates. The big banks aren’t awful, but don’t count out the mortgage brokers.
If you have any questions, call or email us. We’d love to hear from you.