The difference between mortgage brokers and mortgage lenders can confuse a lot of people. But this difference is actually one of the most elementary differences you should know before you begin searching for a mortgage.
Mortgage lenders are financial institutions or banks who actually loan you money i.e. give you a home mortgage loan. Hence the money that you use to purchase your dream home comes from the mortgage lenders. The monthly mortgage payments you make also go to the mortgage lenders. The terms and conditions for your home mortgage loan are actually laid down by your mortgage lender.
Mortgage brokers are completely different from mortgage lenders. Mortgage brokers, as per the term, are those who assist you in obtaining mortgage quotes for your home by interacting with different mortgage lenders. They charge a fee (brokerage) for the service. They don’t lend you any money; but simply bring together the borrower and mortgage lender. Websites such as www.estreetloans.com are online mortgage brokers. These websites give you mortgage quotes from anywhere in the world, right on your computer. You can select the best mortgage quote, but only the mortgage lender will give you money.
In short, mortgage brokers are facilitators and mortgage lenders are the providers of the home mortgage loan.