Pros and Cons of Using Mortgage Broker Services

Many home buyers recruit the services of a mortgage broker when shopping for a mortgage. An experienced and knowledgeable mortgage broker can help you find the right mortgage, but there are advantages and disadvantage to consider before committing.


  • Saves you the Legwork – Mortgage brokers have frequent contact with a vast array of lenders, some you may not even know about. A broker will save you the time and energy having to call up dozens of lenders comparing terms and rates on your own.
  • Brokers Have More Access – There are some lenders that you may not be able to call directly as they will only work with mortgage brokers. A broker could also be able to get special rates from lenders depending on the volume of business they generate.
  • You May Have Some Fees – There can be many different fees involved in a new mortgage such as application fees, appraisal fees, or origination fees. Sometimes mortgage brokers can get lender to waive some or all fees and that can save you hundreds to thousands of dollars.


  • Brokers’ Interests Might not Match Yours – You are in it for the long haul so your ultimate goal should be to find a mortgage with affordable interest rate and low fees. A mortgage broker will often get paid a fee for bringing the lender business. Fees can be based on the amount of the mortgage; therefore the broker’s goal may be to get you the mortgage that gets them the most compensation.
  • You Might not be Getting the Best Deal – Sometimes a lender may offer buyers precisely the same terms and rates that they offer brokers and sometimes even better. It doesn’t hurt to shop around on your own to see if your broker is really getting you a good deal.
  • Brokers Often do not Guarantee Estimates – Broker’s often use the term “good faith estimate” when presenting you with the lender’s offer. The broker believes that these offers will mirror what the final terms of the deal are. The lender might change the terms based on your application in some cases, and this may cause you to pay higher rates or extra fees.

If you choose to use the services of a mortgage broker, work with a reliable one with solid references that can guarantee their loan estimates.