Which Type of Lender Should I Use?

When starting the process of getting qualified for a home, it can be overwhelming when realizing how many places one can apply for/obtain a home loan. There is a multitude of places one can go to, including a mortgage banker, mortgage broker, lender, hard money lender, sub-prime bank, etc. I'll be focusing on the top three most utilized types of lenders:

  • Mortgage broker

  • Mortgage banker

  • Lender

A Mortgage Broker is a company who employs persons who are individually licensed to apply for a home loan with a bank on behalf of a client.

Examples: Equity Now, Northstar Funding, GuardHill Financial Corp, etc.

A Mortgage Bank(er) is a company, individual or institution that can act as a bank or broker. They do not have money to lend. They have lines of credit from lenders to lend to the applicants, or can shop around for different banks to suit the client's needs.


A Lender is a "big bank" that has money to lend to people buying homes. 

Examples: Citi Bank, Chase, Wells Fargo, etc.

Mortgage Broker


Ability to shop around for a bank with a specific guideline or loan product that will fit the applicants needs.

Charge a hefty fee for their services.

Mortgage Banker


Ability to shop around and can close quickly if they have underwriters in house.

Charge same fees as a broker, regardless of shopping for a bank or using a line of credit from a lender.



You cut out the middle men and go directly to the source.

Big banks take a longer time to close


When Purchasing home or condo, difference in closing costs are:

  • Lender related costs -$2,500

  • Broker/Banker related costs ->>$15,000++

Lower rate with no commission.


Michael Burgoski | NMLS. 57955
Top Home Lending Officer

Mobile Tel. 347.723.3766 | Fax. 855.269.1682 | michael.burgoski@citi.com