Whether you are dealing with a lender or a broker may not always be clear. A broker is someone who has access to different sources of loan funds. Some financial institutions operate as both lenders and brokers. And most brokers advertisements do not use the word "broker." Therefore, be sure to ask whether a broker is involved. This information is important because brokers are usually paid a fee for their services that may be separate from and in addition to the lender's origination or other fees. A broker's compensation may be in the form of "points" paid at closing or as an add-on to your interest rate, or both. You should ask each broker you work with how he or she will be compensated so that you can compare the different fees. Be prepared to negotiate with the brokers as well as the lenders.

The best advice is to compare different loan packages and find the most favorable deal for you.