Difference between a mortgage broker and other lenders

[Anonymous]

i don't understand the difference between a broker and a lender like NCFU or Quicken Loans. Anyone want to fill me in on this? Thanks!

[cartwrna]

A broker has a network of lenders so is able to quote you out to multiple lenders for the best rates and quotes, a lender like NFCU just has one set APR, closing costs etc.

[DallasLoanGuy]

3+ types of lenders

Bank: Think checking account and mortgage from the same guy.... not good at loans, but we all sell our loans to them because they are good at servicing them.

Banker: Lendes with their own money. In house processing and underwriting. All decisions made in house. Sells loans to a servicer post closing. Best situation for me personally. Rates same as big banks

Broker: In house proccessing, sends file to lender for underwriting. Typically more hoops to jump thru as far as approval conditions are concerned. Typically a wee bit better rates for your trouble. 

Banker/Broker hybrid: Still a broker, but can underwrite files in house for some of the lenders they sell to

[StartingOver10]

DallasLoanGuy's answer above should be stickied!  ^^^

[Anonymous]

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@DallasLoanGuy wrote:

3+ types of lenders

Bank: Think checking account and mortgage from the same guy.... not good at loans, but we all sell our loans to them because they are good at servicing them.

Banker: Lendes with their own money. In house processing and underwriting. All decisions made in house. Sells loans to a servicer post closing. Best situation for me personally. Rates same as big banks

Broker: In house proccessing, sends file to lender for underwriting. Typically more hoops to jump thru as far as approval conditions are concerned. Typically a wee bit better rates for your trouble. 

Banker/Broker hybrid: Still a broker, but can underwrite files in house for some of the lenders they sell to

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So which do you think woud be best to work with? 

Mid 600's score

Va Loan

38% DTI

Checking and Savings with USAA and NFCU

[VALoanMaster]

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Great explanation from Dallas! The only thing I would add is this:

A mortgage banker like myself is really kind of a hybrid between a bank like Wells & a broker.

Here's what I mean. We underwrite, close & fund all of our loans like Wells BUT we have multiple options like a broker. If you don't fit in the "box" for Wells they can't help you but I have 10-12 different investors that I sell to so if you don't fit the guidelines for one, chances are I have an option that will work.