How do Mortgage Agents at a Brokerage Make Money? With traditional mortgages, I get paid a commission when you finalize your mortgage with a bank or lender and you use me to facilitate it . This is a true win / win for everyone. I do the rate and overall mortgage shopping for you which saves you time and money - and the best part is you don't have to pay for my services. The mortgage lender is happy because they receive your business, and I am happy to be a part of your mortgage process and happy of course to be paid and be in business. Do I Ever Charge Broker Fees? Did you know it is up to each individual mortgage agent to determine if they are going to charge a broker fee for their services? It is common for brokers to determine their fees and when to charge them quite differently. Personally, I will charge broker fees when my clients are not approved by a major bank or mortgage lender. This is usually due to poor credit. Why? Most of my clients get approved with the standard mortgage lenders but from time to time they do not. In these circumstances I will work on getting my clients approved with an alternative lender. By the way, most alternative lenders still offer reasonable rates and mortgage terms. Typically, getting loans approved with alternative lenders takes much more time and effort and these lenders do not pay me a commission like the traditional lenders do. For these reasons I charge a fee for my services.
Are Broker Fees Worth it If I cannot get Approved with a Traditional Lender? Typically mortgage broker fees are a small price to pay compared to the reward you get my securing your mortgage. This really varies depending on my clients wants and needs. If you are not sure what type of lender you would be approved with reach out to me. My clients always know early on what type of lender they will be approved with and if any fees are involved.