The Pros and Cons of Using a Mortgage Broker

By Rick Carrier, NMLS #268110 · Innovative Mortgage Services, Inc. NMLS #250769 · Checked on October 20, 2026

Should you use a mortgage broker or go straight to a lender? It is a fair question, and I am not a neutral party, because I am a mortgage broker. I have been in this business for more than 25 years, and I am licensed in Texas as Rick Carrier, NMLS 268110, with Innovative Mortgage Services, Inc., NMLS 250769. So I will do my best to give you the honest pros and cons of using a mortgage broker, based on what the Consumer Financial Protection Bureau (CFPB) and Texas regulators say, and tell you when going direct may suit you better.

The CFPB puts it simply. 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 different mortgage loans. The CFPB also notes that some financial institutions act as both lenders and brokers, so it is worth asking which role the company in front of you plays.

The CFPB adds that loan officers often work for one specific lender, while brokers typically work with multiple lenders. It also says brokers generally do not make underwriting decisions and do not fund the loans. That last point is the key to everything below. A broker is a go-between. The lender you end up with is the one that approves and funds your loan.

What does a mortgage broker do?

According to the CFPB, a broker does not lend money. A broker helps you find different lenders or loans. The lender approves and funds the loan.

Is a mortgage broker cheaper than a bank?

I cannot say, and I did not find an official source that says so. Costs depend on the loan, the lender and how the broker is paid. Compare real Loan Estimates.

How do mortgage brokers get paid?

The CFPB says loan officers and brokers are paid a loan-specific fee or commission, paid by you or by the lender. Federal law prohibits commissions that vary based on the terms of the mortgage. Always ask who pays and how much.

Are mortgage brokers regulated in Texas?

Yes. SML regulates residential mortgage loan originators and mortgage companies in Texas, and you can file a complaint with the agency.