What Is the Difference Between a Mortgage Broker and a Mortgage Lender?
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
1. A Mortgage Lender Is the Direct Source of Your Loan
A mortgage lender is a financial institution, such as a bank, credit union, or online lender, that provides the loan directly to the borrower.
Key points about mortgage lenders:
- They fund the loan and handle the approval and underwriting process.
- You work directly with the lender to secure your mortgage.
- Mortgage lenders typically offer their own loan products and may give you more personalized service, especially if you have an existing relationship with them.
Mortgage lenders are the primary source of your loan, and you’ll deal with them from application through to closing.
2. A Mortgage Broker Acts as a Middleman
A mortgage broker is a middleman who helps you find the best mortgage options by working with multiple lenders.
Key points about mortgage brokers:
- Brokers don’t lend money themselves; instead, they help you connect with lenders who offer the best terms.
- They have access to a wider range of loan products from various lenders, so they can often offer more options than a single lender.
- Mortgage brokers work on behalf of the borrower, aiming to find the most suitable loan options for your financial situation.
A mortgage broker is great if you want to compare options across various lenders without having to do all the legwork yourself.
Whether you work with a broker or lender, comparing loan scenarios is essential. Calculate your Compare 2 Rates (Interest Costs) now to see how different interest rates and terms impact your long-term costs.
3. Which One Is Right for You?
Choosing between a mortgage broker and a mortgage lender depends on your needs and preferences.
Mortgage broker: Ideal if you want access to a variety of loan options and need someone to do the legwork of comparing rates from multiple lenders. Mortgage lender: Great if you prefer working directly with the institution that funds your loan, especially if you have a strong relationship with a bank or credit union, or want more control over the loan process.
Both brokers and lenders can help you find the right mortgage, so it’s all about what works best for you!
Not sure which loan program suits your situation? Take the Discovery Quiz to find out which mortgage options align with your financial goals and homebuying plans.
Ready to explore your options? Browse our Loan Calculators to compare conventional, FHA, VA, and other loan programs—so you can have informed conversations whether you choose a broker or direct lender.
Ready to Choose the Right Mortgage Option? Let’s Get You Started
At Stairway Mortgage, we help you find the best mortgage solution for your homebuying journey—so you can move forward with confidence.
📘 Download our homebuyer guides to understand your mortgage options.
📊 Check Current Rates to see what’s available today.
🧮 Compare loan scenarios with our Compare 2 Rates Calculator.
🎯 Take the Discovery Quiz to find your perfect loan match.
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