A morgage broker has the ability to utilize hundreds and sometimes even thousands of lenders. By having the flexibility to use so many lenders this gives the mortgage broker access to ten's of thousands of different loan programs and guidelines. In turn, this allows a mortgage broker to find the right loan for each and every individual client. Whereas, most lenders are only able to use one set of guidlines with limited loan programs.

A mortgage brokers main concern is finding the best deal for there client and not focusing on what bank the loan will go through. With a mortgage broker you also have the benifit of having access to the latest and most up to date loan programs. Most banks can only offer there in house programs which are generally limited when compared to a mortgage brokers wide selection.

It is a myth that it costs more to originate a loan through a mortgage broker. Because lenders give "wholesale" pricing to brokers a customer will normally pay no more or sometimes even less to use the services of a broker. When you consider that the cost is no different and the fact that a broker gives you much more to choose from than going straight to the bank it is easy to see why the majority of mortgage loans in the United States are originated by brokers.

Mortgage Brokers are bound by law to disclose all commissions paid to them. Major banks are not bound by law to disclose commissions, as well as many other factors associated with originating a loan. This can result in the borrower unknowingly being overcharged.

Some mortgage lenders do not have retail operations. Loan programs offered by this type of mortgage banks are not available directly to the general public. They are often loan products designed for home buyers who are in a complicated financial situation. Home buyers can obtain these types of home loans only through mortgage brokers.

Banks on the retail level may have unique programs available to the public, however will more than likely be limited when compared to the many loans programs available with a mortgage broker.