Direct Mortgage Lenders: Go straight to the Source

2007-03-08 10:33:40

( Financial )



The term direct mortgage lenders came about as way to make a clear distinction between the mortgage brokers and the companies that provide the actual lending products and services.

THE BENEFITS OF HAVING A MIDDLE-MAN

To avoid any confusion, direct mortgage lenders are the companies that provide the funds for mortgages and other types of loan products. To attract more clients, direct mortgage lenders retain the services of different mortgage brokers and agents. These middle-men provide direct mortgage lenders access to a wider market base.

The relationship between direct mortgage lenders and brokers is symbiotic. One party benefits from the other and vice-versa. Even the best mortgage lenders recognize the importance of brokers to their businesses and continue to employ them as part of their marketing strategy. On the part of the mortgage lenders, they generally do not cater to a single mortgage lender exclusively; they actually broker for several direct mortgage lenders at any given time.

In light of this, it may be an advantage on your part to approach a mortgage broker because as a free-lance agent he can present you several loan packages from different direct mortgage lenders. You can even ask your agent for his top ten mortgage lenders and make your decision from there. A mortgage broker also acts as a go-between between you and direct mortgage lenders. They can also assist you in the application and processing of your loan and give you tips on how to ensure fast approval.

DIRECT OR INDIRECT

In terms of loan services, there really is no way to judge which of the two approaches is better – going the direct route or using a middle-man – both have pros and cons. Whether you go straight to direct mortgage lenders for their financial services or use mortgage brokers will be entirely up to you. However which way you go, your choice should be based on what approach gives you the most benefits.


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