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We explain the mortgage process thoroughly so you are confident and prepared to engage with lenders.

Lenders 101

We’ve met a lot of fantastic lenders over the years. Truth is, there isn’t a clear-cut winner when deciding what type of lender to use. The key is to find someone as knowledgeable as a great financial advisor.

3 Options to Compare

Types of Loan Officers Every LO works in one of these capacities

Mortgage
Broker

Mortgage
Banker

Correspondent
Corresp.

Lender

A Mortgage Broker shops around for a mortgage on your behalf — and then helps you apply for the one that best fits your needs. Think of them as a middleman between you and all kinds of potential lenders (banks, credit unions, trust companies, etc).

A Mortgage Banker will offer you mortgages available through the particular lender where they work (say, Citibank or Bank of America).

A Correspondent Lender has enough money themselves to fund your mortgage. They will make the decision whether or not to finance your loan, but as soon as they do, they will immediately sell it off to a bank (or other financial institution). They “correspond” with a lender throughout the process to ensure they can re-sell your mortgage as soon as you agree to it.

Shorthand What to remember

Flexible

Brokers are generally able to find more flexible loans, since they have a wider portfolio of options to choose from.

Stable

Bankers may have more consistent service, since they are larger, more stable institutions.

Agile

Correspondent Lenders tend to have faster turn-around times, since they approve and finance the loan themselves.

Popularity Percentage of buyers who choose this type

Mortgage
Broker

Mortgage
Banker

Correspondent
Lender

Pros

Cons