A mortgage broker is a person who brokers mortgage loans, usually on behalf of other people or companies. There are many different types of mortgage brokers, one of which is the independent mortgage broker. An independent mortgage broker works for his own firm, and not for any specific bank or lender. This type of broker is more difficult to find because there are very few independent mortgage brokers left in the United States, due to the popularity of sub-prime loans and associated scams. Wealthy You offers excellent info on this.
In addition to the independent mortgage brokers, there are also mortgage brokers who work for large mortgage lenders. These mortgage lenders would like to have as many connections with mortgage borrowers as possible, so that they do not have to spend as much time and money finding out about new clients. Thus, many large mortgage lenders hire brokers to find out about potential borrowers. These mortgage brokers also help the large mortgage lenders with their advertising and marketing efforts. The fees that these mortgage brokers charge for their services are generally fair market values, since they receive a commission for the direct referrals of mortgage borrowers to their firms.
There are many mortgage brokers, both independent and large, who will give you all of the information that you need to make the right decision when it comes to your mortgage terms and loan. The mortgage broker that you choose will be able to find you the best mortgage terms that are available to you and the best possible loan options for you. However, if you go with a mortgage banker, you will likely have to pay them a fee to advertise their services, although the fees will typically be much lower than what you would pay a mortgage broker.