Mortgage clients typically do not pay a fee for the services of a Mortgage Consultant/Broker. Financial institutions pay a finder’s fee to Mortgage Brokers and at the same time offer them their best discounted rates and fast approvals in order to gain their business. This helps financial institutions gain a larger share of the market. A Mortgage Broker can shop among many financial institutions for the best rate and mortgage product for the needs of the client.
A fee may be necessary for clients who have difficult credit and cannot be placed with a traditional lender. This cost must always be disclosed to the client up front and must be authorized in writing by the client before it can be charged.