Does It Cost Anything to Use a Mortgage Broker?

A lot of people hesitate to reach out to a mortgage broker because they assume there must be a catch — like a hidden fee. The reality is, there are no costs when working with a mortgage broker in the majority of situations. The only time a fee would apply is in very specific cases, such as using a private lender, and even then it would always be disclosed upfront.

How We’re Paid

Here’s how it works:

• We’re paid by the lender, not the client.

• The lender pays us a finder’s fee after the mortgage funds.

• They pay us to find the deal, package it properly, and send it to them.

Access to More Options

Another common misconception is that brokers only work with “alternative” or smaller lenders. That’s not the case. We have access to:

• Major banks – Yes, we can often place your mortgage with the same lender you already bank with.

• Credit unions and monoline lenders – These can sometimes offer more competitive terms or flexibility.

The difference is that we’re not tied to one lender. Our job is to find you the best option available, regardless of which lender it’s with.

Relationships Matter

Beyond shopping for rates, one of the biggest value adds a broker provides is experience and relationships. We know which lenders move quickly, which ones are flexible on certain guidelines, and how to present your file to get it approved without unnecessary delays. That can make a huge difference when timing is critical.

Common Myths About Mortgage Brokers

There are a few misconceptions that come up often. Here are the big ones:

• “Brokers make more if they give me a higher rate.”
  Not true. We’re paid the same by the lender regardless of the rate you receive. Our goal is to get you the best option, because our business relies on long-term relationships and referrals.

• “There are hidden fees.”
  Every cost and fee is disclosed upfront in the mortgage disclosure forms. There are no surprises. The only time a fee would apply is in unique situations, such as using a private lender.

• “Brokers always charge fees.”
  For standard residential mortgages, there are no fees. If a fee ever applies, it’s explained clearly before you make a decision — never after.

Final Word

For most buyers and homeowners, there’s no cost to using a mortgage broker — only the benefit of having more options, more advice, and a smoother process. And in the rare cases where a fee applies, you’ll know exactly what it is before making a decision.

Call or text (902) 402-9779, or visit www.gregmatthews.tmgbroker.com/apply.aspx to fill out a five-minute pre-approval form.