A mortgage lender is the bank, credit union, or other institution that provides the mortgage funds.
Mortgage lender is the bank, credit union, nonbank lender, or other institution that provides the mortgage funds and underwrites the loan.
The lender is central because it decides whether to approve the loan, what terms to offer, and what documentation the borrower must provide. Many mortgage questions that feel personal to the borrower are really lender policy questions in practice.
This term also matters because borrowers sometimes confuse the lender with the broker, servicer, or real-estate agent. Those roles may work together, but they are not the same.
Mortgage lender appears from preapproval through closing. The lender reviews income, assets, credit, and property information, then issues disclosures and final approval if the file meets its standards.
After closing, the lender may continue holding the loan or transfer servicing or ownership rights. Even when that happens, the original lender was still the party that made the initial credit decision.
A borrower compares offers from a bank and an online lender. Both are mortgage lenders because each could fund the loan and underwrite the credit decision, even if their processes and documentation requests look different.
A mortgage lender is different from a Mortgage Broker. The lender provides the credit and makes the loan decision. The broker typically helps shop or place the loan with a lender.
It is also different from the broad term Home Loan. Home loan is the product category. Mortgage lender is the institution on the other side of the transaction.