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What's the difference between a bank and a mortgage lender?


Both banks and mortgage companies can make mortgage loans. Banks, however, can also take deposits of your money, which can be placed into a savings account or checking account, but mortgage companies cannot take deposits.
The three main types of lenders are mortgage brokers (sometimes called "mortgage bankers"), direct lenders (typically banks and credit unions), and secondary market lenders (which include Fannie Mae and Freddie Mac).