A bank sells its own loans
A bank or direct lender offers the programs it funds and prices them according to its own rate sheet. If your situation does not fit, the answer is no.
A broker shops many lenders
A mortgage broker is an independent, licensed professional with access to many wholesale lenders. I work with 175+ of them. I take one application and one credit pull, then compare programs and pricing across the group.
Wholesale lenders compete for a broker's business, which is why their pricing is often lower than what the same lender offers through its retail branch.
How a broker is paid
On most loans the lender pays the broker, and that compensation is disclosed on your Loan Estimate. Federal rules prevent a broker from being paid more for steering you to a costlier loan.
When a broker makes the biggest difference
The more unusual your situation, the more it helps to have options: self-employment, investment property, a lower credit score, a jumbo loan or a past credit event.
For a straightforward loan, the benefit is simpler. You get several quotes without filling out several applications.
This article is general education, not financial, tax or legal advice. Guidelines change and vary by lender. Talk with Mike about your own situation.