Mortgage Broker vs. Direct Lender in Southend

Many people have been considering transferring to Southend, a seaside town in Essex. The town has its airport which services domestic flights, a railway station that gives access to London, and the longest leisure marine dock in the world. Given the ease of access, this place is popular for people who would like to relocate to a new home.

Speaking to a mortgage advisors in Southend will help you save time and money, get expert financial advice, help with application and paperwork, and get essential insurance. There are also direct lenders available which are usually a financial institution or a mortgage bank.

Mortgage Broker

A mortgage broker serves as the middle man between a client and lenders. They are licensed professionals who collect your application and documentation and may help you in addressing your credit score concerns to build up your chances for approval. A mortgage broker offers services to make your purchase as easy as possible. They ensure that a purchase is completed in no time and finalize paperwork stress-free.

Since they work from different lenders, they can offer you different quotations from lending companies that you can compare. Mortgage brokers collect information such as income, tax returns, details of assets and investments, pay stubs, and credit reports which help them evaluate which loan is suited for every consumer.

Mortgage brokers charge consumers a fee for their services and commissions from the lender. However, they are sometimes paid with higher interest.

Direct Lender

Direct lenders are entities that use their funds for a mortgage. Most of them are banks and financial institutions that are proficient in financing mortgage loans. Some direct lenders operate online since they are private companies and deal specifically with the general public.

Applying for a mortgage under a direct lender is the same as getting services from a mortgage broker. You will also be required to fill out forms, submit documentation, and wait for approval.

Some consumers prefer to make deals with a direct lender to process loans faster and communicate with ease. Inquiries regarding applications and approvals are coursed to the direct lender which can provide them direct and quick answers.

Key Differences between a Mortgage Broker and Direct Lender

Mortgage brokers are compensated by banks on a fee-based schedule. For direct lenders, the loan origination fee is collected directly from the consumer. They earn from the interest from principal balance, past due fees, and other charges. Direct lenders also provide a good faith estimate (GFE) so consumers will have an estimate of how much they are needed to pay the lender.

If you are a busy person and have no time of researching quotations and processing the papers, getting a mortgage worker will be suitable for you. They are considered a one-stop-shop in purchasing a home and are recommended for first-time home buyers.

Dealing with a direct lender cuts down transaction time and is sometimes a cheaper way to get a mortgage. You will not have to pay services from a middle man and your information stays with your direct lender only.

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