Who Pays the Broker?
When you go through a broker, you might be surprised that you do not have to pay. Does this mean that brokers work for free? Of course not! Someone has to pay them, but it isn’t you.
Brokers get paid by the lender that you go with. It is a commission of sorts. Many brokers get what are called trailer fees today. This is where the broker does not take all the commission up front.
Instead, a smaller amount is taken at signing, and a percentage is given to the broker every year as long as the mortgage is active.
Let’s recap what we’ve learned so far.
- Mortgage brokers are middlemen between buyers and lenders
- Brokers will gather customer info, then shop lenders
- Offers are collected and presented to the buyer
- Make recommendations as to which offer to take
- Brokers remain on the job until the closing process is finished