Comparing a Mortgage Broker to a Direct Lender

Reason: Representation

Mortgage Broker: Fiduciary duty to the borrower to get the best loan possible. Packaging the loan to highlight the strentghs of your loan scenario and minimizing the weaknesses.

Direct Lender: Represents the lender.

Reason: Customization

Mortgage Broker: Offers numerous programs from many lenders and investors at very competitive rates.

Direct Lender: Offers a limited number of programs that need to fit "their box."

Reason: Flexibility

Mortgage Broker: A "problem loan" can be moved from one lender to another, while obtaining the best rate available for your situation.

Direct Lender: Once a loan is denied, the borrower must try a different lender.

Reason: Certification

Mortgage Broker:  Licensed by the Department of Real Estate, enhanced with the knowledge of many lenders and loan programs...as opposed to just one lender's!

Direct Lender: No licensing required with limited programs available.

Reason: Costs

Mortgage Broker: Can offer numerous rate and fee combinations, as well as lower processing fees.

Direct Lender: Offers limited rate and fee combinations.

Scott Gormley
Broker/Owner
Oak Valley Mortgage
2006 Chico Assoc. of Realtors Affiliate Chairman
Direct: 530.592.8362
Fax: 530.267.5555
Website: http://www.caloan.com/

Blog: http://www.caloanblog.com/

"You find the perfect home, we'll find the perfect loan!"