SHOW ME THE MONEY!
In the mortgage industry, a direct lender temporarily borrows money off of a large line of credit—just like the equity line of credit on a home--- and loans it to you. They too, are borrowers. They are not the original source of the money and therefore they are a middleman in the mortgage process as much as anyone.
For you, the borrower, there is nothing magical nor advantageous about this process. In fact, this puts you, the borrower, at the distinct disadvantage of having but one source of funds from which to borrow, and therefore stuck with that pricing---good or bad.
The truth is, the “Direct Lender” pitch is used by mortgage companies with higher rates, fees and fat profit margins to steer borrowers away from mortgage brokers who can always deliver lower rates and fees. A good mortgage broker can quickly search dozens of money sources to find the rate and fees that are the lowest anywhere for your particular loan scenario.
Let Always Best Rate Mortgage find the loan program, rate and pricing that works to your best advantage!