Mortgage Broker vs. Lender

Shopping for a new home can feel overwhelming, but when you have the right resources at your disposal, you can feel comfortable in the process. At Lowder New Homes, we understand that prospective homebuyers may have questions regarding the financial aspects of purchasing a home. Here, we’ll discuss a mortgage broker vs. a lender to help you decide which is right for you.

What Is a Mortgage Broker?

Mortgage brokers are financial professionals who act as intermediaries between homebuyers and their loans. While they don’t issue loans themselves, they help assess a borrower's needs and match them to mortgage loan options available from potential lenders. Mortgage brokers have extensive knowledge and familiarity with different lenders and their home loan options. Therefore, they can help borrowers by providing in-depth information about the requirements each potential lender has for their approval.

Meeting with a mortgage broker is not required for the loan process, but their professional knowledge and industry experience can be beneficial.

What Is a Mortgage Lender?

Unlike brokers, mortgage lenders are typically necessary for anyone looking to buy a home. This is because homes are expensive, and most homebuyers won’t have the money on hand to pay for one. Therefore, they must turn to financial institutions for assistance. Lenders are the ones who directly issue home loans to homebuyers. Working with them means you’ll skip the intermediary and interact with them directly.

You’ll generally want to reach out to several different lenders to find a loan option that best suits your needs. You may favor one over another because of the loan amount they are willing to offer, the interest rate, or the terms and conditions.

Mortgage Broker vs. Lender: How Do They Compare?

Both mortgage brokers and mortgage lenders can assist prospective homebuyers through the loan process, but because they do so in different ways, it’s up to the borrower to decide which is right for them. Some things to consider when looking at a mortgage broker vs. a mortgage lender are:

Communication

When you work with a mortgage broker, they are working for you. This means they will do much of the legwork in researching lenders and their loans. They will discuss the options that most align with your personal situation.

However, working with lenders can make certain borrowers feel more comfortable, as they can direct all their questions to the lender themselves. This makes lenders a good choice for those who want to be more involved and engaged in the process.

Cost

While turning to the mortgage broker can help you find better loan options based on your credit, income, and other factors, these professionals don’t work for free. Oftentimes, they are paid a flat fee, typically 1% to 2% of the loan’s total cost. It is sometimes built into the loan itself. Alternatively, working directly with a lender allows you to avoid this additional cost.

Convenience

Reaching out to a mortgage broker can be helpful because they will handle many aspects of the borrowing process. However, you may enjoy the independence that comes with researching on your own. This offers convenience because you can do so on your own schedule. The homebuying process is exciting, and you may want to get things moving more quickly. Doing so on your own lets you spend a night or weekend exploring your options and getting started on applications sooner. While you may not be as familiar with the lenders that may best align with your situation, contacting lenders yourself can help if you know what you’re looking for.

How Can Lowder New Homes Help You Get a Loan?

At Lowder New Homes, we know that there is a lot involved with the homebuying process, but we strive to make everything go smoothly for our customers. When it comes to loans, we’re happy to partner with our preferred lenders, including LNH Capital. These lenders participate in our buyer incentive program, helping you save money. Our preferred lenders can also tailor loans and their conditions to your specific needs, offering a personalized experience that helps you feel more comfortable. We can even help you get pre-approved to get the process started. Our special offers also make our homes even more affordable.

Why You Should Trust Our Expertise

Lowder New Homes is a local, family-owned company that was founded in 1956. With our years of experience, our customers can trust that we’ll put their needs first and deliver high-quality designs and construction. Our team features attentive agents, dedicated builders, innovative designers, and other passionate staff members who will help you from start to finish.

We put time and thought into each house we build, so you can count on loving your new home. Our new homes come in a wide variety of floor plans, allowing buyers to find one that speaks to them. We believe that new construction homes give homeowners peace of mind, knowing that everything will be reliable for years to come. Those looking to move to the area or upgrade their living situation will love our communities in areas like:

• Opelika
• Auburn
• Montgomery
• Lake Martin
• Pike Road
• Millbrook

Each community offers something special, including amenities like pools, playgrounds, parks, and more.

Get Help from Our Team Today

When the time comes to look for a new home, turn to the beautiful new houses built by Lowder New Homes. We have plenty of homes available in communities throughout Central and East Alabama, allowing you to find one that checks all the boxes on your list. Our commitment to quality construction and customer satisfaction has helped us gain a strong reputation and secure our place as one of the top builders in the nation.

We also work with some of the most well-respected lenders, meaning you won’t have to spend time weighing the use of a mortgage broker vs. a lender. Contact us today if you’re ready to get started or have any questions.