Hello Judy O.: What is the difference between a loan broker and a direct lender?
Answer: There are two advantages to working with a loan broker.
One is the personal service that is necessary to expedite the loan during a very short sale process. You have someone who is accountable every step of the way. With that said, loan brokers work on a commission basis and there is a fee for this service.
Also, a loan broker has a broad selection of loan options with major banks and other lenders and can shop rates for you.
When you go to one bank, the process can be personal, initially. But, after the application process the file generally goes into a fairly anonymous pipeline with little accountability or much incentive to adhere to the time lines of the loan contingency period. Additionally, a bank only has the option of offering their own loan products. So you don’t get the broad picture of your loan options.
Hope this is helpful.