One of the decisions you’ll need to make when looking for a home loan is whether to go through a lender directly or hire a broker. There are quite a few differences between these two types of lenders. You’ll need to weigh the pros and cons of each before deciding which type to go with.
These are the three key differences when it comes to direct lenders vs. mortgage brokers:
- When you go to a direct lender, they’re the one deciding whether or not you get a loan and lending you the money. Mortgage brokers help you find loans from direct lenders.
- Your options are limited with direct lenders because they only offer certain types of loans. Brokers go through several lenders to help you find the right type of home loan for your situation, so you’re not as limited.
- When you hire a broker, keep in mind that you’ll need to pay broker fees. Most get a certain percentage of the money you borrow, but you can compare several different brokers to find one who offers the best deal. You won’t have these extra fees when you go to a direct lender, but you’ll still have to pay the usual loan fees, such as application fees and credit report fees.
Need more information on direct lenders vs. mortgage brokers so you can decide which type to go to for your loan? Speak to a professional ERA Real Estate Professional. And for more information about the types of mortgages out there, check out this article and video.
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