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Brokers usually charge a small percentage of the loan amount (generally 1 to 2 percent) for their services, which the lender pays for (but passes on to you as part of the cost of your mortgage).
Not all lenders are alike. Here’s how to distinguish them, and why it matters for your mortgage.
A correspondent lender originates, and unlike a mortgage broker, underwrites, and funds mortgage loan using their own funds. [1] The initial loan is usually made in the name of the correspondent lender, and then after closing, the loan is either sold to a larger primary lender or on the secondary mortgage market.
A mortgage banker is tied to one financial institution, while a mortgage broker works independently of lenders. As a result, mortgage brokers can help you compare options from various lending ...
Mortgage lender vs. mortgage broker. Though they sound similar, mortgage brokers are quite different from mortgage lenders. Brokers don’t originate mortgages themselves. Instead, they shop your ...
Mortgage broker: A mortgage broker is not employed by the lender (though the latter often pays their fees or commission). Instead, they are independent professionals who act as a go-between ...
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related to: correspondent lender vs mortgage broker reviewsHighest Satisfaction for Mortgage Origination, 2010-2017 - J.D. Power