LENDER VS. MORTGAGE BROKER

You will want to find a lender or mortgage broker who relates to you well, and who can find you the best loan package for your situation. The main difference between the two, is that a mortgage broker is an independent agent hired by you for the purpose of obtaining a loan.

Mortgage brokers, just like primary lenders take a percentage of your loan (points) , which in some cases is tax deductible.

Some people feel that they don't need a broker to assist with a loan that they could arrange for themselves. You may choose to go directly to a local bank or savings and loan association to shop for a mortgage.

The mortgage industry offers advantages not available in the past, having access to many different lenders as well as banks and savings and loans. The lenders discount their loans to brokers, making the cost to you the same. The borrower may save money working with a broker who can shop for the best loan at the lowest price.

Check my Real Estate Terminology Section for information on various key financing words.