Direct Lender vs Bank Lender

[Mike Bonadies]

Hi BiggerPockets!

I have a question about Direct Lenders vs Bank/Broker Lenders. I'm a rookie and I'm trying to pick up a multi-unit/english-basement house to in order to save on my mortgage expense and get some PM experience. I'm shopping around for lenders and I've come across a new type of lender I haven't read much on - Direct Lenders. The direct lender that I spoke with said that using a direct lender gives your offer letter more credibility verses a bank lender since the do a full pre-approval verses what they said is a "BS" pre-approval from a bank/broker lender. They also mentioned that since they are a direct lender that they have a better pool of appraisers to use.

I was wondering if someone could help explain the pros/cons of using a direct lender verses a bank lender? Is what the individual I was speaking with saying something valid?

PS: I'm looking at getting a conventional loan product or using a FHA/203k product.

Best,

Mike