Mortgage loans generally fall into two categories, wholesale lenders and retail lenders. With wholesale loans, the lender offers loans to mortgage brokers at discounted costs. Then the broker adds his fees to this lower wholesale rate. Retail lenders work directly with the borrower, and the final cost for the borrower is usually about the same.

While shopping for a home loan, the borrower may either get assisted by a mortgage banker or broker, where both assist in preparing the right mortgage; however, the mortgage banker works for lending institutions like banks, from whom the loan is obtained, and the mortgage broker is an intermediary working with many of the financial institutions arranging the right mortgages between borrower and lender based on the individual needs and expectation of the borrower.

Although both help procure the right mortgage for a borrower, the basic difference lies in that mortgage bankers represent a bank or other specific financial institution that lends money. In contrast, the broker is not bound to any one lender or financial institution but is free to shop around for a mortgage based on the borrower’s individual need.

Both types of lending have their advantages and what a borrower decides depending on their circumstances. However, using a mortgage broker can save a borrower the time and effort of doing research on their own. Be sure to compare the cost to those of other lenders as you weigh in your options.

Getting a mortgage from a wholesale mortgage lender might be a good option if your credit history is less than stellar or unique since a mortgage broker or other third party has a relationship with the lender and could get you approved under less strict requirements. You’ll work with the broker to complete all of the steps in the application process, and the broker will coordinate with the wholesale lender for approval.

A broker will also be able to help you find competitive rates and terms since they can shop around for you using their wholesale lender contacts. A broker working on your behalf in this sense could save you time from having to do the research yourself. Nevada is a “brick and mortar” state, this means that any and all mortgage brokers must have a physical office located in the state of Nevada. This office is a License Mortgage Broker with the state of Nevada.