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Direct Lender or Mortgage Broker: Which One Should You Choose?

April 1, 2020 by Shannon Christenot

Direct Lender or Mortgage Broker: Which One Should You Choose?

So, you need money to purchase a home, and you come across two ways to get money: a mortgage broker and a direct lender. What’s the difference between the two? Which one is the better option? Let’s find out:

Direct Lenders

What’s a direct lender? As the name suggests, they’re the ones you go to for the mortgage. Compared to a mortgage lender, opting for a direct lender allows you to apply to different lenders, so you can compare rates and figure out which one is the best deal for you.

In most cases, the direct lender you’ll first look at would be the bank you have your debit and credit cards from. Usually, you’ll get to enjoy the best deals from them. Moreover, whether you’re borrowing from the bank you’ve already worked with or an entirely new one, the process of getting the money will usually be much faster than using a mortgage broker who acts as an intermediary.

Mortgage Brokers

What’s a mortgage broker? They’re an individual or an organization that brings together both mortgage lenders and mortgage borrowers together. In addition to that, their job is to gather the right paperwork from the mortgage broker and give it to the mortgage lender for approval. If you were the borrower, a broker will look for different banks for lenders that’ll satisfy your needs.

The main benefit of working with a mortgage broker, then, is that rather than looking for and dealing with multiple mortgage lenders yourself, you deal with one person—the mortgage broker—who then looks for the right lenders for you. That said, once you’ve chosen which lender you want to borrow from, the broker will continue to assist you in filling out your application.

That said, there are considerations to make when choosing brokers. First, you need to work with a broker that can gather all the right information that you need, such as lenders that are available in the area, as well as specific mortgages that might interest you. Secondly, you must be sure to work with a mortgage lender that follows regulations. That’s because, before, many of these brokers weren’t regulated, meaning that what you compensated to them will depend on their requirements. For example, some brokers might try to convince you to borrow from high-risks mortgage lenders or even borrow more money than you need.

Which ones to choose

So, the decision lies between mortgage brokers and direct lenders. Which one should you choose? Well, if you want to secure a mortgage quickly, a direct lender will do it faster. If you’re going to weigh out your option thoroughly or need assistance through the borrowing process, a broker would be the way to go.

Conclusion

Put simply, the final decision rests on your shoulder and your needs. If you’re still wondering which ones you want to opt for, though, feel free to choose both the lender and the broker. That way, you can see which ones give better rates, and you’ll have a better idea of what you can opt for.

If you’re looking for the best mortgage broker in Los Angeles, we are your best option. Call us at (818) 601-2231 today to see how we can help.

Filed Under: Mortgage Broker Tagged With: California, Los Angeles, mortgage broker, mortgage lender Los Angeles

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What Our Clients Say

Shannon Christenot
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Caroline Wong
Caroline Wong
17:04 22 Apr 20
Shannon was very prompt and responsive to all queries. The process went more smoothly than I ever could have imagined. Highly recommend Shannon for all your mortgage/re-financing needs.
Sarah Goldberger
Sarah Goldberger
19:36 21 Apr 20
I cannot recommend Shannon highly enough! As an independent contractor, I knew getting a mortgage would be a little difficult, and Shannon supported me and helped make it work every step of the way. If I ever need brokerage services again, she'll be my first call!read more
Kristina Robbins
Kristina Robbins
21:47 15 Apr 20
We’ve worked with Shannon and her team twice and both experiences were stellar. The first was buying our first home and she walked us through the process and explained everything along the way to help us get quickly up to speed. The second time we were going for a refi in maybe the most turbulent mortgage market ever as COVID hit. She guided us through all the hurdles and worked double time to satisfy all the lenders new requests. We got a rate a full percent lower. I can’t recommend this team highly enough.read more
Karl Larsen
Karl Larsen
23:55 13 Apr 20
Shannon Christenot is the most amazing lender we’ve ever had. As a matter of fact this is the second time we’ve used Shannon to do a mortgage with us. She held our hand every step of the way. She made the whole process stress-free as well. And when we were coming down to the wire to finish our escrow within the 30 days she got us an extension Without even asking. Now we are locked into a very low rate. We’ve saved hundreds of dollars per month for the next 30 years. We cannot Thank Shannon enough. I would recommend Shanon to anyone thinking of buying a home or refinancing.read more
Tony Bilby
Tony Bilby
03:09 07 Mar 20
Shannon and her team were professional, competent, and swift when it came to the lending associated with my home purchase. We were able to get the loan approved and close on a house in less than 30 days. Record time!read more
Joshua Barton
Joshua Barton
16:05 23 Nov 19
I have had the pleasure of working with Shannon for 8 years - her knowledge of the mortgage process and attention to clients is unparalleled. The Los Angeles market can be tricky with high dollar homes and unique income of the Entertainment Industry, but Shannon takes charge and leads everyone through to successful closings like clock work - cannot recommend her enough a true Rock Star in Mortgage world.read more
Lauren S
Lauren S
04:52 18 Oct 19
Working with Shannon was a real pleasure. She was always available and got back to me promptly with any necessary information. I was able to refinance my mortgage at a rate considerably lower than another larger company quoted who I had started working with. I look forward to working with Shannon again and I highly recommend her to anyone looking for a competent and decent mortgage broker.read more
Mike White
Mike White
02:15 27 Sep 19
As first time home buyers we had no idea what we were doing. We were pre-approved by a well known company but quickly discovered that we absolutely did not want to work with them for the actual mortgage. Shannon was recommended to us by a friend and I called on a Saturday morning. By Saturday evening we were well on our way to buying a house (we closed three days ago!). Shannon made navigating these foreign waters so easy, answering all of our newbie questions with patience and grace. Plus she got us a fantastic rate. We are so grateful for Shannon and can not recommend her enough. WE OWN A HOME!!read more
Alaine Smith
Alaine Smith
13:15 26 Sep 19
It was wonderful working with Shannon! She is attentive, thorough, and intelligent. It was easy to communicate with her because she took time to hear and understand my goals and always responded quickly. I highly recommend her to anyone looking. The customer service she provides exceeds expectations by a long shot! Thank you, Shannon, for all your help!read more
Julie Mckay
Julie Mckay
17:20 28 Aug 19
I just purchased my first home! Shannon and her team were truly a dream to work with. I was never left in the dark and she was always quick to respond with all of my questions. My experience couldn't have been easier. I highly recommend Shannon and would use her again in a heartbeat! She is the BEST!read more
jojo quijada
jojo quijada
19:55 27 Aug 19
I've been in the real estate business for over 5 years now, and I always trust Shannon to work with my clients. She and Josh are an AMAZING TEAM! Buyers love to work with Shannon as she gets things done asap and answer any and every question/concern. I couldn't recommend a better person for lending. Can't thank her enough!!read more
Rotimi Ayanbeku
Rotimi Ayanbeku
20:12 15 Aug 19
I always go back to Shannon because she is one of the best in the business! I've worked with Shannon over the years, however, she outdid herself in my last deal. She was so professional, caring and effective that my clients were comparing everyone else in the deal to Shannon. More importantly, we were ready to fund in less than two weeks. Once again, Shannon affirmed my belief in her that she always rises to the occasion. Thank you for being the best!read more
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Shannon Christenot is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.

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