Lenders include banks and credit unions. When you apply for a mortgage through a lender, you’re dealing directly with the lender. Brokers aren’t lenders; they’re middlemen who find a lender for you. If you have excellent credit and have a financial institution that you deal with regularly, you would probably choose a lender.
How are brokers paid?
If you need help finding the best deal, you would probably choose a mortgage broker who can save you time from going to many lenders on your own. It might cost you a fee to use a mortgage broker. Brokers are paid by you or the lender, typically between 1% and 2% of the loan.