Key takeaways
- A mortgage lender funds the loan; a mortgage broker arranges it and guides you through the process.
- Either way, your loan follows the same program rules for conventional, FHA, VA and jumbo loans.
- The right choice comes down to licensing, communication and the loan program that fits you.
What Is a Mortgage Lender?
A mortgage lender is a bank, credit union or mortgage company that makes home loans with its own funds or credit lines. Lenders set their own guidelines within each loan program and handle underwriting and funding. Many work with borrowers directly through their own loan officers, which is often called retail lending.
What Is a Mortgage Broker?
A mortgage broker is a licensed company that arranges your loan through a wholesale lender. The broker takes your application, helps you choose a loan program, gathers your documents and manages the process through closing, while the wholesale lender underwrites and funds the loan. In Colorado, mortgage companies and loan originators must be licensed, and you can verify anyone you work with on NMLS Consumer Access.
Broker vs. Lender: Side by Side
Who funds the loan
- Mortgage lender
- The lender itself
- Mortgage broker
- A wholesale lending partner
Who you work with
- Mortgage lender
- A loan officer employed by the lender
- Mortgage broker
- A licensed loan originator at the broker
Loan programs
- Mortgage lender
- Conventional, FHA, VA, jumbo and more, depending on the company
- Mortgage broker
- Conventional, FHA, VA, jumbo and more, depending on the company
Licensing
- Mortgage lender
- Licensed; verify on NMLS Consumer Access
- Mortgage broker
- Licensed; verify on NMLS Consumer Access
Costs
- Mortgage lender
- Listed on your Loan Estimate after you apply
- Mortgage broker
- Listed on your Loan Estimate after you apply
How to Choose: Questions to Ask
Whoever you work with, these questions help you compare with confidence. Check them off as you go.
How Countryside Lending Works
Countryside Lending Inc. is an independent mortgage broker in Colorado Springs, serving borrowers throughout Colorado since 2006. We arrange purchase and refinance loans through wholesale lending partners and handle the process from application to closing, with one point of contact the whole way.