If you are ready to buy a home, you are probably thinking about your finances. If you do not have enough capital then you will need to get a loan.
This means that there will be two options presented to you. You can either get the loan from a mortgage broker vs direct lender.
If you are brand new to all of this, things can get confusing fast. Here is a look at which loan option is the best for you.
Mortgage brokers act as a middleman for several different lenders. They will attempt to match you with a loan that suits your needs. Once you get approved you will begin to deal with the loan provider.
When you opt for a direct loan you skip the middleman and go straight to the source of the loan. The person who is assigned to handle your application will have a say in the final decision. The agent that you deal with will often continue to be a point of contact for you for many years to come.
You can clearly see how a direct lender can save you a lot of time especially if you want to make a purchase quickly.
A direct lender will usually be licensed across the country while a mortgage broker may only be licensed in the area in which they provide services. This can create problems for you if the property you are trying to purchase is outside of their licensing area.
With a direct lender, you have a wider variety of loans at your fingertips, since they originate loans.
When you decide to go with a mortgage broker you are bound by the guidelines set down by the lender. The broker will not have the authority to waive requirements in order to give you the loan.
They would have to go back to the direct lender and then get back to you. All of this can be time-consuming. When you get a loan from the direct lender you have the opportunity to ask them to modify the loan directly so that it can be better suited to your financial needs.
You will also get a break on fees too because the direct lender will not need to charge hidden fees to make up for the back end fees they incur.
You may have been weighing in your mind whether you should go to a mortgage lender vs direct lender you should now clearly see the benefits of working with a direct lender.
Unless you have no other option available you should go directly to the source of the funds, which is a direct lender, in the end, you will get a better deal.
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