
A mortgage broker acts as a middleman between you and potential lenders. Mortgage brokers have a well-developed stable of lenders they work with, which can make your life easier. Mortgage brokers are licensed and regulated financial professionals. Mortgage brokers are licensed financial professionals. They gather documents, pull your credit history, verify income and apply for loans on your behalf. Mortgage brokers are most often paid by lenders, sometimes by borrowers, but never both, says Rick Bettencourt, president of the National Association of Mortgage Brokers. You can also choose to pay the broker. But you need to do your due diligence [and shop around]. The competitiveness — and home prices — in your local market how do fee free mortgage brokers make money have a hand in dictating what brokers charge. In the other direction, though, federal law limits how high compensation can go. That restriction was put into the financial regulation law as a result of the predatory lending that triggered the housing crash. Loan officers are employees of a lender and are paid a set salary plus bonuses for writing loans for that lender.



