mortgage brokers vs lenders

Mortgage Brokers vs. Lenders: What Are The Differences?

Buying a home is a big step in anyone’s life, and when it comes time for you, you need proper financing. Many people seek a mortgage loan for financial assistance but still need to figure out mortgage brokers vs. lenders. This short guide can help you determine whether a lender or broker could help you best in home buying.

Altitude Home Loans can pair you with an experienced mortgage broker in Tucson, AZ, and will discuss all available options. Read more about the differences between essential mortgage parties, and then contact Altitude Home Loans at 520-500-1010.

Mortgage Brokers

Mortgage brokers help you find the best lender but do not provide financial assistance to fund the purchase of your house. They know about many lenders and can find one that will help your specific needs. Brokers are the “matchmakers” between you and the lender.

Brokers can help you compare all loan options and show you programs that may be ideal for you. Mortgage brokers work based on their client’s financial information and credit scores, and you may find more affordable lending options with their assistance.

Pros of Working with Brokers

Mortgage brokers can provide you with multiple lending options and allow you to shop around. You will compare all potential choices and work with someone who can find a match, no matter your financial circumstances. Brokers have connections and access to information that can benefit you.

Cons of Working with Brokers

Working with a broker might not be what you’re looking for as an experienced buyer. Some lenders pay brokers to recommend them to clients, and your broker could charge a fee on top of your loan cost. Be wary if your broker is directing you toward a more expensive loan option.

Mortgage Lenders

Your other option when comparing mortgage brokers vs. lenders is a lender. A mortgage lender is often a credit union or bank that determines if your financial background makes you a reliable choice for a loan. Some lenders are private companies that operate online to provide fast approvals and more support to buyers.

You will repay your lender’s loan over time and use the money to purchase a home. Lenders offer funding, while a broker merely connects lenders and buyers.

Pros of Working with Direct Lenders

Working with mortgage lenders may be quicker because they are selective about who will borrow their money. Many lenders operate throughout the country and can loan you money in any state, giving you more options.

Cons of Working with Direct Lenders

Direct lenders may only accept your loan application if you meet their specific criteria. You are responsible for obtaining your financial documents and information for the lender to review. For every lender, you must complete a new application.

Receive Mortgage Loan Assistance with Altitude Home Loans

The Altitude Home Loans team can help if you need a mortgage broker and are purchasing or refinancing a home. Call us today at 520-500-1010 to discuss mortgage loans and lending options in Tucson. We understand whether mortgage brokers vs. lenders suit your needs and are ready to help.


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