Money Talk With Slater

Making Money Across the Board

Monthly archives "April 2019"

What is the Difference Between a Broker and a Direct Lender (Part II)?

Slater 0 Comments

Direct lenders may be a better option if you are looking for a house out of state since they have a nationwide license. 

Why Should I Work with A Direct Lender?

Working with a direct lender has many advantages. Interest costs and rates are typically a little lower with a direct lender than they are with a mortgage broker. While pricing differs somewhat between mortgage brokers and lenders, the devotion, knowledge, and expertise of seasoned a mortgage loan originator are crucial.

Here are another couple of reasons why you might consider partnering with a direct lender.

Speed – Since procedures are entirely in-house – from processing to underwriting to funding, they can usually close loans very swiftly.

Licensing – numerous big lenders have nationwide licensing, so they can help clients all over the whole nation. So, if you’re looking at out-of-state houses, they can assist.

Also, customer service plays a huge role when selecting a company to work with. Be sure they have a positive reputation. The home loan process necessitates a mortgage expert with plenty of experience, great communication, and great customer service.

The mortgage marketplace is a busy place. It’s natural to have questions about how it all works, particularly with hundreds of new apps, websites, and technology. Lots of businesses and entities claim to have the best solution when it comes to financing, but it’s critical to be able to tell the difference between these types of institutions.

Mortgage lenders have certain lender licenses. There are a couple of types of lenders, for instance, correspondent lenders or conduit lenders who serve as a broker-lender hybrid, closing and funding the loan or very quickly selling the loan to a direct lender.

Direct lenders have the money to fund mortgage loans. In some instances, they will use lines of credit. Also, direct lenders may hold on to and service some of the loans they originate. Or, they may securitize or sell them in the secondary mortgage market.

What is the Difference Between a Broker and a Direct Lender (Part 1)

Slater 0 Comments

A mortgage lender, banker, and direct lender all mean the same thing. 

You’ve been on a mission to accomplish your financing goals and it’s now that time. With numerous options and information floating around out there about home financing, it can be difficult to know where to begin.

You’ve been referred to a mortgage broker, been told to look at several banks, or even been exposed to the term direct lender and mortgage lender. Below is the difference between a direct lender and a mortgage broker.

What Is A Direct Lender?

You’ve heard the terms mortgage lender, mortgage banker, and direct lender. While they sound different, they mean the same thing. A direct lender is just a lender or bank that works directly with a homeowner, with no requirement for a broker or middleman.

Direct lenders fund loans and then once funded will sell them in the secondary market to investors or agencies like Freddie Mac or Fannie Mae. At times, instead of selling the loan, the direct lender won’t sell the loan and will serve as the mortgage loan servicer, taking mortgage payments too.

What’s A Mortgage Broker?

A mortgage broker is an intermediary who brings homeowners/mortgage borrowers and mortgage lenders together but doesn’t use its own funds to offer mortgages. A mortgage broker collects paperwork from a borrower and forwards that paperwork on to a mortgage lender for underwriting and approval. A mortgage broker is thought of like the middleman of the industry.

It’s good to explore your various options. If you’re reading this, you’re already on the correct path to accomplishing your financial goals. If you still can’t make up your mind, it might be best for you to get in touch with and look around between mortgage brokers and direct lenders. Or, you can do your own online research to see which one works best for you.