 TITLE: Is It Better to Use a Mortgage Broker or Bank? CONTENT: How Do Mortgage Brokers Work?\n-----------------------------\nA mortgage broker acts as a middleman between you and lenders when you're shopping for a home loan. Most mortgage brokers work with a variety of lenders, including banks, credit unions and private mortgage companies, which allows them to offer you a wider range of choices. If you have less-than-perfect credit, are self-employed or have any other special circumstances, this extra flexibility can help you find the best fit.\nHaving a great mortgage broker is like having a great real estate agent: They get you results you couldn't easily get yourself. Mortgages have a lot of working parts: interest rates, down payments, origination fees, points and more. A good broker can help you understand how these variables work together and what makes one loan a good value compared with another.\nBut be aware: Mortgage brokers work on commission from lenders. For that reason, they may have an incentive to sell you a bigger loan—or steer you toward one lender over another, regardless of what's best for you. Some mortgage brokers may charge you fees, but a great broker will be forthcoming with both loan options and good information. To help ensure that your mortgage broker is working hard for you, consider these three tips:\n*   **Get a referral.** Recommendations from friends, family, your financial advisor or a trusted real estate agent can help you find an honest, earnest mortgage broker.\n*   **Ask about fees upfront.** Ask your broker how they are being compensated and what fees, if any, you might have to pay for their services.\n*   **Do your own math.** A broker can help you determine how much loan you qualify for, but it's not for them to decide how much you should borrow or which rates and terms are acceptable to you. That responsibility is yours. END