A mortgage broker is an intermediary who brokers loans on behalf of individuals and businesses. Mortgage brokers originate more real estate loans than mortgage bankers, commercial banks, and credit unions combined.

While not all mortgage brokers are the same, a knowledgeable and experienced mortgage broker can provide benefits that are generally not available when a prospective mortgage borrower applies for a loan to a commercial bank or credit union.

• Mortgage brokers nearly always have 10 to 30 wholesale relationships with lenders. These lenders either do not offer loans directly to the public, or they discount their fees to mortgage brokers, allowing brokers to offer either the same rates and terms, or even more competitive rates and terms than the lender offers to the public.
• Since mortgage brokers typically offer their clients the loan products of 10 to 30 lenders, they are often in a position to offer a loan applicant more choices which can work to the financial benefit of the borrower.
• Unlike financial institutions that have limited business hours, most mortgage brokers will work evenings and weekends to accomplish the goal of closing your loan fast.
• A mortgage broker is working for you as your agent. The bank loan officer is working for the bank who is their employer.
• An important factor to consider is that mortgage lenders often have different criteria for approving loans. Mortgage brokers understand this and do their best to direct each loan application to a lender that is most likely to approve each loan request. Much to their disappointment, many people submit loan applications directly to lenders only to find out several weeks later that the lender will not approve the loan request. This happens often because some salaried bank loan officers accept loan applications for processing even when they are convinced their employer will not approve the loan. They accept these applications because they want to appear to be productive.

Fees paid to mortgage brokers vary depending upon supply and demand conditions. We believe the best way for a prospective borrower to negotiate a reasonable loan fee is to interview at least two mortgage brokers to determine what they charge for their services.