Mortgage Broker vs Mortgage Lender: What's the Difference?

What's the difference between a mortgage broker and a mortgage lender? Mortgage brokers find people who provide mortgage loans. Mortgage lenders lend money to the home buyer.

What is a mortgage broker in real estate? The mortgage broker is the middle man between the mortgage lender and the person borrowing the home loan. What the mortgage broker does is simple. They will assess the lender to see how much they can borrow and then find a lender for them. Their job is to match a lender with a lendee, which saves time for all parties.

A mortgage lender on the other hand is the entity that lends the money to the lendee. Often times a homebuyer will need to take out a loan, so they will go to their mortgage broker to help them find a mortgage lender. The mortgage lender assess the information that the broker gives them and makes a decision to lend money based off that. The mortgage lender is usually a bank or other large financial entity.

If a homebuyer pays for a house with all cash, then they skip the mortgage broker and mortgage lender process altogether. They have all cash (not actually all cash) so they can afford the house without borrowing money.

And that's all there is to it! Remember, the mortgage lender is someone who lends the money whereas the broker will connect the mortgage borrower with the lender. Easy, right?

Chapters:
00:00 - What are we talking about?
00:12 - What is a mortgage lender?
00:45 - What is the mortgage broker?
01:04 - What's a third-party originator?
01:15 - How do mortgage broker's get paid?

#MortgageBroker #mortgagelender #mortgage

[nickcrespo]

One of the best ways to remember this for the state exam is the mortgage broker is the “negotiator” and the mortgage banker is the “lender.” The banker makes the loan.

[Linda_Arie]

Mortgage Broker And A Blender @0:06 🤣😂💯.
But Still, Great Info 😉😀

[jeffpfitzer]

Awesome video Rico! Hope you crush it this year with your business!
Video Liked and Subscribed to support your channel.

[chasemilner]

Great video! Thanks for sharing this info Rico.

[sinarella]

Thank you so much for explaining this!! 🙏🙏

[imanjay]

Rico, how can I meet with you boss. I love to buy you lunch and see if I could chit chat and pick your brains, I find your content amazing im studying to pass my exam and my goal is to become best agent out in SoCal I love love love to have a mentor like you sir. Thank you for being so awesome