A Mortgage Broker is an individual who acts as an intermediary between you (the borrower) and banks or lending companies. A mortgage broker will require a fee or take a commission for his or her services.

The reason there is such a huge demand for mortgage brokers is because they save borrowers lots of time conducting research and because they have information about loans that borrowers might qualify for, but may not find out about. Plus, mortgage brokers can save you thousands of dollars by matching you with the right lender.

There is a fee associated with using a mortgage broker. This could be a fee that you or the lender pays. So make sure that one of the first things you ask the mortgage broker is how much he or she is charging and where that money will come from. Sometimes the broker will receive their fee in the form of a commission that requires you to pay an extra point on the amount you borrow. Or you could be charged a flat fee up front. Just make sure that you find out before you hire a broker so that you avoid negative surprises. I recommend you work with Up Front Mortgage Brokers because they disclose their fees and take a professional oath of consumer advocacy in lending practices.

Finding a reputable broker should first start with the recommendations you receive from your co-workers, family members, and friends, so ask around. You can also contact state and local boards of realtors for lists of mortgage brokers in your area. Or you can be referred to local mortgage brokers by going through the National Association of Mortgage Brokers. And don’t forget about the yellow pages in your phone book—check under banks, credit unions and savings and loan companies.

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