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Comparison Between Mortgage Brokers And Direct Lenders
Who is a mortgage broker?
A mortgage broker is a mediator between the lender and the borrower and usually helps the borrower to meet the right lender, which would meet his requirements the best. All the understanding and communication takes place with the help of the broker. A mortgage broker works mainly through the side of the borrower and brings him the best deals.
What are direct lenders?
Direct lenders are those who deal with the loaning system on his own. There is no involvement of any third party such as a broker. The direct lenders can be an individual as well as a company.
There will be a difference in the process of lending money if you choose either of the parties.
Direct lenders usually offer only mortgage-related services, whereas mortgage broker handles various types of loan services. According to this perception, the direct loaner seems more specialized when compared to the mortgage broker.
Direct lenders have strict rules and make sure the borrower abides by them. They have no separate rules for each but in the case of mortgage brokers, the rules become flexible, and they can vary with each person.
Direct lenders usually have the permission to lend in all the states, but mortgage brokers do not. They usually have limited access to that.
You are solely responsible for all the decisions you make while dealing with a money lender directly. A mortgage broker can help you with a few things like proper procedure and can tell what is in your best interest.
In case you do not have the kind of time to sit and research for the best deals, the broker can come to your rescue.
A mortgage broker can deal with multiple money lenders at a given time on your behalf and can get you the deals which go exactly with your plans.
Here are a few factual checks which can help you assess what is the better option amongst the two. The answer can be subjective, and it totally depends upon your need to take help of the comparison drawn and choose what suits you the best.
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