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Mortgage Lenders and Brokers: Comparing Offers and Incentives

The person helping you arrange a mortgage may work for one lender or help connect you with several. That role affects what they can offer and how they are paid. Comparing lenders also raises practical questions about credit checks and licensing. Use those questions to understand the sales process before treating one recommendation as your only available choice.

The questions below use selected Consumer Financial Protection Bureau guidance, adapted and organized by Fynoptic. Source links and the dates displayed by those sources are provided at the end.

How do I find the best loan available when I'm shopping for a home mortgage loan?

Shopping around for a mortgage loan will help you get the best deal. Start with an internet search, or contact banks, credit unions, and other lenders and brokers in your area.

The internet is a good place to start your search. By doing a broad online search for mortgage rates in your area, you will get a good sense of the market.

Next, contact banks, credit unions, or other lenders and mortgage brokers in your area. Ask each lender or broker you call for:

  • A list of current interest rates for their available mortgage loans and whether the rates being quoted are the lowest for that day or week.
  • What fees the lender normally charges for each loan product.
  • Each loan’s annual percentage rate (APR). The APR tells you the yearly cost of the loan based on the interest rate as well as points, broker fees, and certain other charges that you may be required to pay, including certain closing costs.
  • Whether the rates given for various products are fixed or adjustable, and what points or fees go along with different rates. Sometimes you can get a better rate if you pay “points” or additional fees. But make sure that you actually get a lower interest rate in exchange for the extra points you pay.

There are many different types of mortgage loans available, so be sure you understand all of your options. If you are a veteran or service member, you may qualify for a VA loan. If you have concerns about your credit history or only have enough to make a smaller down payment, you may qualify for an FHA loan.

With all of the options out there, it is important to shop around and take the time to understand the terms of the different loans offered to you. It’s a good idea to request loan estimates from at least three different lenders and compare them to choose the best loan for you.

Tip: Ask these questions to better understand your loan offer:

  • Is the interest rate fixed or adjustable?
  • Do I need to pay points?
  • What fees will I have to pay? Will I pay those myself or will the lender loan the fees to me?
  • What is the term of the loan?
  • How much will my payment be and will it eventually pay off my principal?
  • What other costs will be added to my monthly payment?
  • Can I repay the loan early without penalty?
  • Will the payments change over the life of the loan? How high can my payment go?
  • For an adjustable rate mortgage, are the payment adjustments and the interest rate capped?
  • How much will I need to put down?
  • Does the written offer match what I was told about the loan?

How does a mortgage loan officer or broker get paid?

When you work with someone to get a mortgage, they are usually paid a loan-specific fee or commission. This money is paid by you or by the lender you use.

A mortgage loan officer or broker is the person who works with you to get a mortgage. Mortgage loan officers often work for one specific lender. Mortgage brokers typically work with multiple lenders.

While federal law prohibits commissions from varying based on the terms of the mortgage, lenders can pay mortgage loan officers and brokers in many ways.

For example, a lender can pay a salary, a fixed amount per loan, a fixed percentage of the amount of the loan, or even a combination. When loan officers and brokers are paid per loan, lenders can also set minimums or maximums paid per loan. This flexibility in the law allows lenders to set up different pay arrangements to serve a range of borrowers and loan types.

Before you work with a loan officer or broker, make sure you understand their fees and who pays them. And remember, you can shop around for a lender and broker to find the best rate.

What is the difference between a mortgage lender and a mortgage broker?

A lender is a financial institution that makes direct loans. A broker does not lend money. You can use a broker to find different lenders or mortgage loans.

When you take out a loan with a lender, you pay them back based on the terms of your loan. When you work with a broker, you pay them a loan-specific fee for their services. Learn more about how brokers are paid.

Some financial institutions operate as both lenders and brokers, so you should ask whether a broker is involved in your loan transaction.

Regardless of whether you are using a broker or a direct lender, you should always shop around for the best loan terms and the lowest interest rates and fees.

Is there any way I can check to see if the company or person I contact is permitted to make or broker mortgage loans?

Yes, the Nationwide Mortgage Licensing System & Registry (NMLS) maintains a free service where you can see if a financial-services company or professional is authorized to conduct business in your state.

Additionally, you can usually check if there has been an order of disciplinary action against the individual loan originator or company by checking with your state regulator.

Is there any way I can see if there have been disciplinary actions against my broker?

You can usually check if there has been an order of disciplinary action against a broker by checking with the appropriate state regulator.

Additionally, the NMLS Consumer Access website may list some disciplinary actions against brokers.

If you have problems with your mortgage broker, you may submit a complaint to the CFPB online, or by calling (855) 411-2372.

What happens when a mortgage lender checks my credit?

Credit checks coming from lenders are reported to the credit reporting companies as an “inquiry.” An inquiry typically has a small negative effect on your credit scores. Inquiries can be seen by other lenders when they check your credit.

Inquiries tell other lenders that you are thinking of taking on new debt. An inquiry typically has a small negative effect on your credit scores. Inquiries are a necessary part of applying for a mortgage, so you can't avoid them altogether. But it pays to be smart about them. As a general rule, apply for credit only when you need it.

Applying for a credit card, car loan, or other type of loan results in an additional inquiry that can lower your scores, so try to avoid applying for these other types of credit right before getting a mortgage or during the mortgage process. Find out more about credit scores.

Does shopping around for a mortgage hurt my credit?

No. Within a 45-day window, multiple credit checks from mortgage lenders are recorded on your credit report as a single inquiry. This is because other lenders realize that you are only going to buy one home. You can shop around and get multiple preapprovals and official Loan Estimates.

The impact on your credit is the same no matter how many lenders you consult, as long as the last credit check is within 45 days of the first credit check. Even if a lender needs to check your credit after the 45-day window is over, shopping around is usually still worth it. The effect of an additional inquiry is small, while shopping around for the best deal can save you a lot of money in the long run.

Can I check my own credit with no effect on my scores?

Yes. When you check your own credit — whether you're looking at your credit report or credit scores — the credit reporting companies don’t treat it the same as a lender making an inquiry. Checking your own credit does not affect your credit scores. If you are applying for a mortgage and haven't already checked your credit report for errors, do so now. You can get a free copy of your credit report at annualcreditreport.com. If you find errors, get them corrected as soon as possible.

Sources and further reading

The CFPB source passages are U.S. government work in the public domain. Fynoptic has selected, organized, and adapted the material for this guide, including corrections identified through the additional sources listed above. Sources accessed October 27, 2026. This use does not imply agency endorsement or affiliation.

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