Direct Lender and Mortgage broker

[Akash Sky]

Hello!  

I've been doing some googling to try and figure out what the difference between a direct lender and a mortgage broker is.  So far, I've only discovered that "Direct Lenders" can be cheaper than "Mortgage Brokers" because the mortgage brokers charge you a commission in addition to the lending fees.  

Other than that, I really don't understand the difference.  Also, if I go to a bank, how can I tell whether or not they are going to act as a direct lender or a mortgage broker?

[Chris Mason]

Hi @Akash Sky,

If brokering or direct lending was always better, the other would have been put out of business decades ago. I do both. And I correspondent lend, just to throw a 3rd term into the mix. It's really scenario dependent. Don't get caught up in the buzz words and sales pitches.