The Differences Between Brokers and Lenders

When it comes to securing home financing, it’s important to understand the key players and institutions in the process. Here, we’ll discuss the differences between brokers and lenders and how each participates in home loans. At Nickel City Funding, our mortgage brokers have more than 20 years in the industry. We’re happy to answer any questions you have about brokers and lenders or other parts of the mortgage process. We serve clients in North Tonawanda, Hamburg, Amherst, West Seneca, Lancaster, New York.

In the most basic terms, lenders are institutions that provide funding for loans, and brokers are professionals who find lenders and connect borrowers with different mortgages. There are pros to working with both brokers and lenders, which we’ll discuss further.

Lender Basics

Lenders can be banks, credit unions, groups of investors or even individuals. Sometimes, lenders have their own in-house loan officers who work with borrowers directly to provide funding. Lenders either approve or reject financing directly. If you are rejected for financing by a lender or cannot secure the rates or terms you like, it’s the end of the line with that lender.

Broker Basics

Mortgage brokers specialize in finding the right type of loan for each client. They typically work with several different lenders and can secure competitive interest rates. Though a mortgage broker does not directly provide financing, they will serve as your point of contact throughout the life of your loan.

Many people finding working with brokers appealing because they can cut through a wide array of lending options to find the right solutions for each borrower’s unique needs. They can be especially helpful for clients with financial challenges, such as less-than-great credit or the inability to supply a large down payment. Mortgage brokers can offer both conventional mortgages and nonconventional loans like FHA loans and VA loans.

Mortgage brokers can provide a local perspective and connections that big banks and national lenders may not be able to offer. The mortgage brokers at Nickel City Funding have many local colleagues in real estate, for example. We help many of our clients find their real estate agents, and we can help expedite many processes in the buying process by talking directly with real estate agents.

A Partner in Home Financing

Wherever you are in the mortgage process, we’re happy to help. We encourage our clients to talk to many mortgage brokers and lenders to ensure that they feel comfortable with their options. The mortgage brokers at Nickel City Funding have long-established relationships with national lenders. Because of our preferred broker status with many lending institutions, we can offer very competitive rates. We work with clients in North Tonawanda, Hamburg, Amherst, West Seneca, Lancaster, and New York.