difference between direct lender and broker
However, there are some basic differences between mortgage brokers and direct lenders that you should be aware of. Mortgage brokers may represent several lending sources as opposed to direct lenders who are a single lending source. Brokers act as intermediaries between you and several lenders.
Mortgage Fees and Disclosures. Because mortgage interest rates are often based on what happens in the secondary markets, rates available to lenders wonât vary too much. However, the mortgage fees attached to those rates can vary greatly. Mortgage Brokers must disclose their fee under federal law; however, Direct Mortgage Lenders do not need to.