Direct lenders are lending their own money, only  have in-house programs, and make the final decision on your application. Brokers are intermediaries who represent many lenders and loan programs from which to choose. Brokers are the best source for finding financing and the cost in most cases is less than going to a direct lender. An experienced broker is able to find the best loan for you.

Along with shopping the source, you'll also have to shop the total costs of the loan, including the interest rate, broker fees, points (each point is one percent of the amount you borrow), prepayment penalties, the loan term, application fees, credit report fee, appraisal and a host of other items.