What does a mortgage broker do?
A mortgage broker works with a number of lenders, helps you compare their loan options and handles your application with the lender you choose. A mortgage broker doesn't lend its own money. That lender reviews and approves the loan and funds it at closing.
A bank, credit union or online lender lends directly, so you see that one institution's programs. Some institutions act as both a lender and a broker, so it's fair to ask which role they're playing on your loan.
Broker, bank or online lender, side by side
| Mortgage broker | Bank or credit union | Online lender | |
|---|---|---|---|
| Who lends the money | One of the lenders the broker works with | The bank or credit union | The online lender |
| Loan options you see | Programs from several lenders | That institution's programs | That company's programs |
| Where costs are shown | Loan Estimate and Closing Disclosure | Loan Estimate and Closing Disclosure | Loan Estimate and Closing Disclosure |
How are brokers and loan officers paid?
Loan officers and brokers are usually paid a fee or commission tied to the loan, paid either by you or by the lender. Federal law doesn't allow that pay to vary with the terms of the mortgage, so a loan officer can't earn more by steering you to a costlier loan.
Whoever you work with, your costs appear on the Loan Estimate A standard three-page form you receive within three business days of applying that shows your estimated rate, payment and costs. See the full glossary you receive after you apply, so you can compare offers line by line. Ask any broker or lender to walk you through their fees and who pays them.
When may a bank fit better?
If your bank offers a discount to existing customers, or you want a product only your bank offers, it can make sense to get a quote there too. Either way, the CFPB suggests shopping more than one lender or broker, and comparing Loan Estimates is the simplest way to see which offer fits.
How does Tom work as a broker?
Tom is a loan officer with Elite Mortgage Group, LLC, a mortgage broker only, not a mortgage lender. That lets Tom compare programs from many lenders, including FHA, VA, USDA, conventional, jumbo and loans for self-employed buyers and investors, and recommend the one that fits your plans. See the program highlights, or read more about Tom.
What should I ask any broker or lender?
Ask any broker or lender these questions before you choose:
- Are you acting as the lender or as a broker on my loan?
- Which lenders or programs will you compare for me?
- What are your fees, and who pays them?
- Can I have a Loan Estimate to compare with other offers?
- Are you licensed in New Hampshire? You can check anyone on NMLS Consumer Access.
Tools for this topic: Affordability calculator
Sources
- CFPB, What is the difference between a mortgage lender and a mortgage broker?
- CFPB, How does a mortgage loan officer or broker get paid?
- NMLS Consumer Access
Checked October 2026. Limits and program rules change, so confirm current figures before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.