Morgage lenders and morgage brokers
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Before you will enquire about morgage loan you have to realize differences between lenders and brokers.
There are many types of morgage lenders, for example commercial banks, bankers, credit unions or thrift institutions.
Lenders like bankers gain funds by selling loans in the secondary morgage market. Bankers are focused especially on making loans, so they can offer attractive terms and rates of loan.
Brokers assist the consumer in the selection and application process, because they have access to a many lenders. Brokers are paid when a loan is closed and fee are paid by the lender or the borrower.
Lenders have retail and wholesale departments. Brokers gain rates at wholesale, they are free to set pricing, so they add points and quote a retail rate for consumers.
Brokers have big advantage, they have a few sources of morgage wholesale lenders, so they can find and offer a loan at the best rate.
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