Banks, credit unions, brokers and nonbank lenders, mapped side by side
Broker vs direct lender
On the map
A direct lender funds its own loans; a broker shops your application to several lenders and is paid by you or the lender. Both must give you a Loan Estimate. Compare estimates, not labels.
Last reviewed against the primary sources listed below.
Compare
| Broker | Direct lender | |
|---|---|---|
| Funds the loan | No | Yes |
| Options | Several lenders | Its own |
Common questions about where to apply
Is a broker cheaper than a lender?
Not always; compare Loan Estimates.
How are brokers paid?
By you or the lender, disclosed on the estimate.