{"id":17402,"date":"2023-11-11T08:28:37","date_gmt":"2023-11-11T08:28:37","guid":{"rendered":"https:\/\/test.newhomeguide.com.au\/?page_id=17402"},"modified":"2023-11-18T17:22:59","modified_gmt":"2023-11-18T17:22:59","slug":"finance","status":"publish","type":"page","link":"https:\/\/test.newhomeguide.com.au\/index.php\/finance\/","title":{"rendered":"Finance"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"17402\" class=\"elementor elementor-17402\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5c6a6dc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5c6a6dc\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e7138ac\" data-id=\"e7138ac\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9816d4e elementor-widget elementor-widget-heading\" data-id=\"9816d4e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.17.0 - 08-11-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">Finance<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-aaf6095 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"aaf6095\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-78fca7d\" data-id=\"78fca7d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a09f437 elementor-widget elementor-widget-heading\" data-id=\"a09f437\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Mortgage Broker vs Direct Lender<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-049ab0d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"049ab0d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2dea041\" data-id=\"2dea041\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6c142a4 elementor-widget elementor-widget-text-editor\" data-id=\"6c142a4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.17.0 - 08-11-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p id=\"mntl-sc-block_1-0-1\">The mortgage industry is full of individuals and companies helping people get access to financing for one of the biggest investments in their lives. These entities include\u00a0mortgage brokers\u00a0and direct\u00a0lenders.<\/p><p id=\"mntl-sc-block_1-0-3\">While they may provide services to people seeking\u00a0mortgage\u00a0loans, they are\u00a0very different. A mortgage broker acts as an intermediary by helping consumers identify the best lender for their situation, while a direct lender is a bank or other financial institution that decides whether you qualify for the loan and, if you do, hands over the check.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d508524 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d508524\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-76d1caf\" data-id=\"76d1caf\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d9ea9a4 elementor-button-success elementor-widget elementor-widget-button\" data-id=\"d9ea9a4\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-lg\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Request Free Loan Assessment<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-8abb4f4\" data-id=\"8abb4f4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-104189e elementor-button-success elementor-widget elementor-widget-button\" data-id=\"104189e\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-lg\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\"> Request Free Financial Planning<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-63f9b40 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"63f9b40\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2c760f0\" data-id=\"2c760f0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5bdf288 elementor-widget elementor-widget-heading\" data-id=\"5bdf288\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Mortgage Broker<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7795830 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7795830\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5334183\" data-id=\"5334183\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-70ca04a elementor-widget elementor-widget-text-editor\" data-id=\"70ca04a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>When a prospective\u00a0homeowner\u00a0is ready to shop around for a mortgage, they may decide to consult with a mortgage broker. This is a financial professional who brings together borrowers and lenders. They are not lenders and, as such, do not use their own funds to advance mortgage loans. Instead, they act as intermediaries, helping consumers comparison shop, bringing them a variety of\u00a0quotes\u00a0from different lenders at one time.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-36ada52 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"36ada52\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5ff073a\" data-id=\"5ff073a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-644320b elementor-widget elementor-widget-image\" data-id=\"644320b\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.17.0 - 08-11-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"929\" height=\"399\" src=\"https:\/\/test.newhomeguide.com.au\/wp-content\/uploads\/2023\/11\/Finance_mortgage-housing-crisis-bubble-929x399-1.jpg\" class=\"attachment-large size-large wp-image-17435\" alt=\"\" srcset=\"https:\/\/test.newhomeguide.com.au\/wp-content\/uploads\/2023\/11\/Finance_mortgage-housing-crisis-bubble-929x399-1.jpg 929w, https:\/\/test.newhomeguide.com.au\/wp-content\/uploads\/2023\/11\/Finance_mortgage-housing-crisis-bubble-929x399-1-300x129.jpg 300w, https:\/\/test.newhomeguide.com.au\/wp-content\/uploads\/2023\/11\/Finance_mortgage-housing-crisis-bubble-929x399-1-768x330.jpg 768w, https:\/\/test.newhomeguide.com.au\/wp-content\/uploads\/2023\/11\/Finance_mortgage-housing-crisis-bubble-929x399-1-496x213.jpg 496w\" sizes=\"auto, (max-width: 929px) 100vw, 929px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d8186be elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d8186be\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a6da921\" data-id=\"a6da921\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-80a39de elementor-widget elementor-widget-text-editor\" data-id=\"80a39de\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p id=\"mntl-sc-block_1-0-12\">To do this, a mortgage broker sits down with their clients to assess their needs and financial situation. They gather important information and documents that lenders require from the borrower, including&nbsp;income, pay stubs,&nbsp;tax returns, details on assets and investments, and&nbsp;credit reports. This helps them evaluate how much a consumer can afford to borrow.<\/p>\n<p id=\"mntl-sc-block_1-0-14\">Once amassed, they take this information to a bank or other lender for loan approval. Brokers are also responsible for communicating between borrowers and lenders during the application and approval process.<\/p>\n<p id=\"mntl-sc-block_1-0-16\">A good mortgage broker should be able to bring valuable information to the table, such as which lenders loan money in certain areas, which ones offer a specific type of mortgage, and which welcome or avoid applications on loans for certain types of homes such as&nbsp;co-ops, condos, or multi-family homes. Mortgage brokers can also work with borrowers who have a hard time getting approved through direct lenders\u2019&nbsp;automated underwriting process&nbsp;due to recent bankruptcy, poor credit, or unsteady employment.<\/p>\n<p id=\"mntl-sc-block_1-0-18\">Mortgage brokers provide the convenience of being a&nbsp;one-stop-shop. This eliminates the need to visit multiple lenders to try to get the best rate and, ultimately, approval for a mortgage. And consumers won\u2019t have multiple hits to their credit reports since they only have to visit one person to secure the best loan possible.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4ed9658 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4ed9658\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-242bab0\" data-id=\"242bab0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3b1b568 elementor-widget elementor-widget-text-editor\" data-id=\"3b1b568\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>When working with a mortgage broker, it is wise to run a quick comparison to see if the rates and fees that they are offering are truly competitive. There are several companies that allow you to transparently see their\u00a0rates and fees\u00a0in under five minutes without a credit check, provided you meet their loan criteria.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ebd3159 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ebd3159\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a8aeeef\" data-id=\"a8aeeef\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-066d725 elementor-widget elementor-widget-heading\" data-id=\"066d725\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">\nDirect Lender<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bd1b793 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bd1b793\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3926ea1\" data-id=\"3926ea1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9571d10 elementor-widget elementor-widget-text-editor\" data-id=\"9571d10\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p id=\"mntl-sc-block_1-0-25\">A direct lender is a financial institution or private entity that actually provides the loan for a mortgage. Direct lenders may be banks and other&nbsp;financial institutions. Some direct lenders are private companies that deal specifically with financing mortgage loans for the general public\u2014many of which operate online. For instance, borrowers that use lenders like&nbsp;Quicken Loans&nbsp;and Loan Direct can complete and get their approvals online.<\/p>\n<p id=\"mntl-sc-block_1-0-27\">Many borrowers choose to go with a lender with whom they\u2019ve already done business. Having a long-standing relationship may help secure a better\u2014or bigger\u2014loan amount, not to mention a better interest rate. The process of applying for a mortgage through a direct lender is the same as it is with a mortgage broker: providing documentation, filling out the application, and waiting for approval. A&nbsp;mortgage calculator&nbsp;can show you the impact of a better interest rate on your monthly payment. Calculate Your Monthly&nbsp;Payment<\/p>\n<p>Consumers cut out the&nbsp;middleman&nbsp;by going to a Bank. Doing so may also make the loan process faster. Since the lender deals directly with the consumer, the two can communicate effectively with one another rather than having to rely on someone else to relay messages back and forth. So, if a consumer has any questions during the application and\/or approval process, they can go directly to the lender.<\/p>\n<p id=\"mntl-sc-block_1-0-33\">The goal is to find the direct lender with the best rate and have a backup if the first choice doesn\u2019t come through. But there is a pitfall to choosing a direct lender. Skipping a mortgage broker may mean going through the application process with more than one direct lender. Shopping around like this can be tedious and time-consuming. It can also mean taking a hit to your&nbsp;credit score&nbsp;if you\u2019re applying with multiple lenders within a short period of time.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-43b815f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"43b815f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-382d931\" data-id=\"382d931\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a3841bf elementor-widget elementor-widget-heading\" data-id=\"a3841bf\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Key Differences<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ac3d8c0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ac3d8c0\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ffa8951\" data-id=\"ffa8951\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0fa0e3f elementor-widget elementor-widget-text-editor\" data-id=\"0fa0e3f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p id=\"mntl-sc-block_1-0-36\">Compensation is one of the key differences between mortgage brokers and direct lenders. Mortgage brokers are paid on a fee-based schedule. In most cases, the loan\u00a0origination fee\u00a0charged by the bank is paid to the broker.<\/p><p id=\"mntl-sc-block_1-0-38\">This figure is based on the total amount of the loan, which can influence a broker\u2019s advice and research. Like some\u00a0commission-based\u00a0financial planners, some brokers work mainly with\u2014or are partial to\u2014certain lenders, which could influence the choices that they offer you.<\/p><p id=\"mntl-sc-block_1-0-40\">Direct lenders, on the other hand, are compensated through a variety of fees and charges. For instance, if a consumer goes directly to a lender, then that entity collects the loan origination fee. The lender also makes money off the interest earned on the\u00a0principal\u00a0balance, late fees, and other related charges that are required during closing. Consumers can get a reasonable idea of how much they must pay the lender in the\u00a0good faith estimate\u00a0(GFE) that all lenders provide.<sup>1<\/sup><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-808646b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"808646b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6ee934d\" data-id=\"6ee934d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-52cf1db elementor-widget elementor-widget-heading\" data-id=\"52cf1db\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Special Considerations<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ca50ab2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ca50ab2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1fe8ba4\" data-id=\"1fe8ba4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b8a55a2 elementor-widget elementor-widget-text-editor\" data-id=\"b8a55a2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p id=\"mntl-sc-block_1-0-43\">Consumers aren\u2019t obligated in any way to choose between mortgage brokers and direct lenders. In fact, they can call both to compare their rates and judge which route they want to take.<\/p><p id=\"mntl-sc-block_1-0-45\">A bank may be a good place to start, especially for those who have a good relationship with their own financial institutions. For people who don\u2019t want the hassle of contacting different banks, mortgage brokers are a better option. As mentioned above, some lenders work exclusively with mortgage brokers and some brokers work exclusively with specific lenders.<\/p><p id=\"mntl-sc-block_1-0-47\">This may provide borrowers access to loans that they would otherwise not even hear about. But it\u2019s always a good idea to ask what their rationale is for suggesting a specific lender.<\/p><p id=\"mntl-sc-block_1-0-49\">Mortgage brokers once had a dicey reputation, so it\u2019s no surprise that many people are still hesitant to use them. They were loosely regulated, and\u00a0their compensation\u00a0was based on the nature and size of the loan. Some persuaded borrowers to choose high-risk mortgages or to borrow more than they really needed. But increased regulation and\u00a0consumer protection laws\u00a0make them a good alternative for consumers who want to have someone else do all the shopping and talking for them.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-91d2266 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"91d2266\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6eabf51\" data-id=\"6eabf51\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2226119 elementor-widget elementor-widget-heading\" data-id=\"2226119\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Are the Pros of Working With a Mortgage Broker?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-684c4d3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"684c4d3\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0cce60f\" data-id=\"0cce60f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-63bee8f elementor-widget elementor-widget-text-editor\" data-id=\"63bee8f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>You\u2019ll have access to multiple lenders, which gives you a good idea of how multiple lenders will qualify you. This can give you more flexibility, especially if your circumstances mean that you don\u2019t fit into a category typically recognized by lenders.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2d2525f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2d2525f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-015fc5a\" data-id=\"015fc5a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-49dce94 elementor-widget elementor-widget-heading\" data-id=\"49dce94\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Are the Cons of Working With a Mortgage Broker?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-29b82f2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"29b82f2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-622f3f7\" data-id=\"622f3f7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-25416e8 elementor-widget elementor-widget-text-editor\" data-id=\"25416e8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Fees might be one disadvantage to working with a broker. Some mortgage brokers charge a fee to the buyer. In cases where the lender covers the fee, it is important to ensure that you are not being steered toward a more expensive loan because it comes with a higher commission for the broker.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1428018 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1428018\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f12daf5\" data-id=\"f12daf5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4e02a28 elementor-widget elementor-widget-heading\" data-id=\"4e02a28\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Are the Pros of Working With a Direct Lender?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0197c1c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0197c1c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-807b5db\" data-id=\"807b5db\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-706db87 elementor-widget elementor-widget-text-editor\" data-id=\"706db87\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Direct lenders can make funding decisions quickly since they control their own lending criteria. This allows them greater control over which customers get the funds that they\u2019re seeking. Another advantage is that many large direct mortgage lenders are licensed nationwide, which means that they can help buyers from any state. When a borrower is looking to buy a home in another state, direct lenders can be a great source of help.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bad1588 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bad1588\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-28ae818\" data-id=\"28ae818\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c71fa68 elementor-widget elementor-widget-heading\" data-id=\"c71fa68\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Are the Cons of Working With a Direct Lender?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4767846 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4767846\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-395122b\" data-id=\"395122b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e6a7a02 elementor-widget elementor-widget-text-editor\" data-id=\"e6a7a02\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>For one, you must apply individually with each lender. When dealing with direct lenders, there are no brokers to assist in the tasks of gathering documents and assessing your financial status.<\/p><p>Another drawback is the approval of your application. Direct lenders have their own underwriting and loan terms. If there are problems with your application that they cannot overcome, then your loan application could be denied. If this happens, you\u2019ll have to start a new application with a new lender.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4332309 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4332309\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7587577\" data-id=\"7587577\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-921ca10 elementor-widget elementor-widget-heading\" data-id=\"921ca10\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The Bottom Line<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-cef7167 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"cef7167\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-66cd888\" data-id=\"66cd888\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-04946c1 elementor-widget elementor-widget-text-editor\" data-id=\"04946c1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>While a mortgage broker is a one-stop shop for multiple options, their fees come from the lender, so it may be possible for well-qualified buyers to get better rates and fees by cutting out the middleman. Individuals who are less qualified buyers or are buying less traditional properties will have an easier time finding loans for which they can be approved by going through a mortgage broker than by going through individual direct lenders with generally stricter criteria for approval.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-26099d1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"26099d1\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-409502a\" data-id=\"409502a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cfdfc2d elementor-widget elementor-widget-heading\" data-id=\"cfdfc2d\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How to Find a Mortgage Broker<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6ce4984 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6ce4984\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6f51d08\" data-id=\"6f51d08\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-013a1c2 elementor-widget elementor-widget-text-editor\" data-id=\"013a1c2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Mortgage brokers tend to be more localized, so the best place to&nbsp;start your search&nbsp;is by asking friends, family, and your real estate agent for referrals. If you still don\u2019t have someone who can help you, then please call our recommended Mortgage Broker and they will be happy to help you.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Finance Mortgage Broker vs Direct Lender The mortgage industry is full of individuals and companies helping people get access to financing for one of the biggest investments in their lives. These entities include\u00a0mortgage brokers\u00a0and direct\u00a0lenders. While they may provide services to people seeking\u00a0mortgage\u00a0loans, they are\u00a0very different. A mortgage broker acts as an intermediary by helping [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"redux-templates_full_width","meta":{"footnotes":""},"class_list":["post-17402","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/test.newhomeguide.com.au\/index.php\/wp-json\/wp\/v2\/pages\/17402","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/test.newhomeguide.com.au\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/test.newhomeguide.com.au\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/test.newhomeguide.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/test.newhomeguide.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=17402"}],"version-history":[{"count":7,"href":"https:\/\/test.newhomeguide.com.au\/index.php\/wp-json\/wp\/v2\/pages\/17402\/revisions"}],"predecessor-version":[{"id":17536,"href":"https:\/\/test.newhomeguide.com.au\/index.php\/wp-json\/wp\/v2\/pages\/17402\/revisions\/17536"}],"wp:attachment":[{"href":"https:\/\/test.newhomeguide.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=17402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}