BROKER vs. LENDER:

To many people, a mortgage company is just a mortgage company. However, not recognizing the clear differences between mortgage service providers can often times lead a potential borrower down the wrong path and into a mortgage that might not be the best fit for them. That's why it is essential to comprehend the key differences between mortgage companies. There are generally two types of mortgage companies available to service your needs, LENDERS and BROKERS.

A LENDER (also called a Bank or Investor) is a mortgage company that not only takes your application and processes your loan, they also underwrite and directly fund the loan themselves. They LEND their own money to you directly. Most lenders typically service your loan for a certain period of time once it has closed, although some may sell it to another investor shortly after closing. This changes from Lender to Lender. The rates offered by direct lenders can sometimes be higher than what a broker can offer, due to the higher overhead cost the Lender has to cover. Plus, if you are working one on one with a Lender, you are limited to only the rates and programs that particular Lender may offer.

A BROKER is a separate, licensed third party. A BROKER doesn't lend money directly, they instead work with customers to find the right lender for their situation. BROKERS will take your application, process your loan and then find the Lender whose rates and programs suit your needs best. A BROKER typically has developed relationships with many different banks and lenders and thus has access to a wide variety of different loan products and programs from all of the lenders they work with. This enables BROKERS to offer their customers a better selection of available mortgage solutions, and without the high overhead of the bank, a BROKER can almost always offer lower rates. Plus, with a Broker, you never have to worry about being limited to one set programs and rates.

Both BROKERS and LENDERS will have their own fees they may charge at closing, although these may change depending on the individual situation. Also, other parties involved in the transaction have their own fees, such as Appraisers and Attorneys.

Why Working With CNS Mortgage Is A Better Choice Than A Bank

The answer is simple:Better Rates, Better Service and a Better Mortgage.

At CNS, our reputation for putting our customers first has led to multiple awards from some of the various lenders we deal with. In addition, local attorneys, appraisers and even other Mortgage Professionals have entrusted their home financing to CNS Mortgage. They recognize and respect our commitment to finding the absolute best mortgage for our customers, period.

As an experienced mortgage broker with an exemplary reputation, we receive extremely competitive wholesale rates from some of the world's most respected financial institutions. Plus, as a smaller, locally owned and operated company, we don't have the high overhead costs of the larger national mortgage lenders. And with many members of our staff having experience in the mortgage banking industry, we know just what to do to get you a deal that is better than the bank. This enables us to obtain the loan program that fits you best with some of the most highly competitive rates available.

Related Pages:

The Loan Process

Loan Application Info

Loan App Checklist

Loan Programs Menu