Direct Lenders

Loan brokers and loan originators are two different types of marketing companies that appear on the surface to be money lenders, when in fact they merely provide a service that results in a customer getting hooked up to a real lender. And they charge for that service.

In order to be classed as a direct lender, a substantial percentage of the loans you "create" have to be kept in your portfolio as a long term investment. What are the advantages to going with a company that keeps the loans as an investment? Well, for starters, you save most of the money that these investors typically shell out to find business.

There are dozens of different cleverly disquised names for the fees charged by middle men in the loan industry. Things such as "loan origination fee", or "application fee". In the best case, you can sometimes get the same loan from a direct lender and skip the extra fees charged by the middle men.

Sometimes you may not be able to get the same interest rate on your own as you would have gotten through a middle man. In times when business is hard to find, the fees charged by middle men are more likely to be offset by a better deal on your loan. At other times when business is easy to come by, it is almost always advantageous to go directly to a direct lender.

If you want the best deal possible on your new real estate loan (either a first or a second mortgage loan), we suggest that you include this criteria in your search and carefully seek out those companies that are actual direct lenders.

For more info on direct lenders and home loans in general, we suggest you do some more reading at the page linked above.