Some people get confused between mortgage brokers and mortgage lenders. Difference between mortgage brokers and mortgage lenders is really one of the most basic things that you should understand before you start looking for a mortgage.
Mortgage lenders are financial institutions or banks that actually lend you money i.e. grant the home mortgage loan to you. So, it’s the money of the mortgage lenders that you use to buy the home of your dreams. Obviously, your monthly mortgage payments too go to the mortgage lenders. The terms and conditions on your home mortgage loan are actually decided between you and your mortgage lender.
Mortgage brokers are very different from mortgage lenders. Mortgage brokers, as their name suggests, are people who help you in getting mortgage quotes for your home by coordinating with various mortgage lenders. And they do this for a fee (i.e. their brokerage). Mortgage brokers do not lend you any money; they just facilitate the transaction between the borrower and mortgage lender. Websites like <---****HYPERLINK****--->"http://www.estreetloans/" target="_blank">www.estreetloans are like online mortgage brokers. With such websites, you can obtain mortgage quotes for your New Jersey mortgage or for your Alaska mortgage or for anywhere, from anywhere in the world. So you might be sitting at a computer in say Wisconsin and getting mortgage quotes for a New Jersey home or for an Alaska home. You can choose the mortgage quote which best suits you, however, you will still be borrowing from mortgage lender only.
So, mortgage brokers are facilitators and mortgage lenders are the home mortgage loan providers.
