How much will it cost to use a mortgage broker?

Believe it or not, the majority of clients do not pay for a mortgage broker’s services. The cost is absorbed by the financial institutions, which pay the broker a finder’s fee in exchange for their business. Institutions will also offer them their top rates and fastest approvals. This setup allows brokers to shop around for the product and rate that best suits their client’s unique needs. In almost all cases, there is no cost to the client. In situations where traditional lenders will not approve a mortgage because of poor credit and where the application must be placed with a private or non-traditional lender, a brokerage fee may be charged to the client. This cost must be disclosed to the client at the start and must be authorized in writing by the client before it can be charged.