These days, home buyers or mortgage borrowers can easily get information with just a click of a button. Accessible resources are all over the internet if you just know where to look.

While these resources are very helpful to a lot of home buyers, it’s still vital that borrowers have face-to-face interaction with mortgage industry professionals.

Throughout your home buying process, you get to meet these professionals. As you go along with every step, they will help make your homeownership journey a little bit easier.

As experts in their field, they surely have substantial information up their sleeves. Other than that, they will lead you towards the right direction until you reach your goal of becoming a homeowner.

Since information is power, home buyers should be familiar with the different mortgage industry players so that they will know who to turn to for help. When it comes to these professionals, home buyers commonly confuse one from the other.

This is especially true for mortgage lenders and brokers. In order to understand their differences, here is some of the key information about each one.

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Mortgage brokers act as an agent that connects a borrower to mortgage lenders. They will look into your financial profile in order to assess which lender is a perfect match to your current situation.

One important advantage for borrowers seeking help from lenders is that they can match you with a network of mortgage lenders you can choose from. Once you get matched with a lender, the mortgage broker will now be out of the picture.


Mortgage Lenders are professionals who are responsible for lending or giving home buyers funding they need to buy a home through a mortgage. Lenders either provide financing directly from them or connect through a third-party organization or company.

There are different types of lenders depending on how borrowers get in contact with them or how the loan is acquired. Among these lenders are retail, wholesale, and correspondent lenders.

Retail lenders, also known as direct lenders, make transactions directly to individual borrowers or consumers. True to its name, retail lenders can provide direct funding to borrowers.

On the other hand, a wholesale lender funds mortgages in bulk through a mortgage broker. The broker gets a number of loan applications then sells them to a wholesale lender.

Mortgage brokers are not the only link that borrowers will have to wholesale lenders. A lot of banks and credit unions also work closely with them.

Finally, correspondent lenders have combined characteristics or a mortgage lender and a mortgage broker. They can fund a mortgage directly and they can also connect borrowers to other lenders.

There are types of lenders who work with borrowers after their mortgage is funded. These are portfolio lenders and mortgage bankers.

Portfolio lenders get fund from their customers’ deposits in order to fund mortgages. They may either be community banks, loan companies, or credit companies.

Mortgage bankers, on the other hand, borrows funding from banks in order to fund the mortgage and pay it back when it’s sold.


The expertise among mortgage lenders, mortgage brokers, and other mortgage and real estate professionals will help you get the best practices on how to go through with each step.

Through these professionals, your home buying experience is sure to be a lot easier to handle. In the end, you’ll finally become the homeowner you always dreamed of.