Direct Mortgage Lender

A direct mortgage lender or third party lender is a lender that markets mortgages directly to the public. Most online mortgage lenders are direct mortgage lenders.

Traditionally the only way a person could get a mortgage was to go to a mortgage broker. A mortgage broker is a professional that arranges mortgages. The mortgage broker creates an application that it submits to a number of mortgage providers in an effort to get a mortgage for a person.

Direct lenders eliminate the mortgage broker and make mortgages directly to homeowners. There are quite a few advantages to using a direct mortgage lender.

Advantages to Direct Mortgage Lenders

The biggest advantage to a direct mortgage lender is that it eliminates many of the costs of using a mortgage broker. Most mortgage brokers charge substantial fees for their services, these fees are usually added to the cost of the mortgage. Using a direct lender can eliminate these fees and lower the cost of the mortgage.

Another advantage is that direct mortgage lenders can often give homeowners a much better deal on a mortgage. Direct lenders often charge less interest and lower fees than traditional mortgage brokers and lenders. Direct lenders also offer a wider variety of mortgage products than those from traditional sources.

Direct mortgage lenders are also more likely to work with those with bad credit and other borrowers regular lenders won’t touch. Direct lenders are willing to do this because they have access to mortgage products designed specifically for those borrowers.

Faster and Easier to Use

Direct mortgage lenders are also faster and easier to use than traditional mortgage lenders. Since a borrower is working directly with the mortgage provider they can get a quick decision on the mortgage application. Many direct mortgage lenders will make a decision on a mortgage in just a few hours.

Another advantage is that all a person has to do to use a direct lender is to fill out a simple online form. This can reduce the time spent on mortgage applications and eliminates most of the paperwork involved in the traditional mortgage process.

Direct Mortgage Lenders Online

The best way to find a direct mortgage lender is to go on online. Large numbers of direct mortgage lenders operate online and most of them are easy to locate and use. Typing the word mortgage into a search engine will produce links to a wide variety of direct mortgage lenders.

The applications direct mortgage lenders put online are simple and easy to use. These applications are also fairly fast and more convenient than commercial mortgage brokers.

A direct mortgage lender is probably the average person’s best option for getting a really good deal on a mortgage.