What is the difference between a mortgage lender and a mortgage broker?
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A lender is a financial institution that makes direct loans. A broker does not lend money. You can use a broker to find different lenders or mortgage loans.
When you take out a loan with a lender, you pay them back based on the terms of your loan. When you work with a broker, you pay them a loan-specific fee for their services. Learn more about how brokers are paid.
Some financial institutions operate as both lenders and brokers, so you should ask whether a broker is involved in your loan transaction.
Regardless of whether you are using a broker or a direct lender, you should always shop around for the best loan terms and the lowest interest rates and fees.