They have no intention of honoring this rate because in many cases it represents a loan that would be closed with no profit. Instead, they will tell you that the lender would not honor the rate lock or they will delay processing your loan and as a result your rate lock will expire. By the time you reach this point it will probably be too late to go anywhere else and you will have to accept whatever rates they choose to offer you. Before you commit to any lender, make a call to your local Better Business Bureau and make sure that any rate lock commitment the lender makes is in writing. Your real estate agent will also be able to tell you which mortgage brokers to avoid.
Most mortgage brokers are reputable and typically work with dozens of lenders.
Because of these relationships, in many cases they can find a loan that is ideal for your situation. A mortgage broker has worked with these lenders many times and in some cases even knows the personalities of the loan underwriters. These guys have a different motive in originating mortgages. Many of these institutions offer loans both directly to the public and through mortgage companies. Not necessarily - for two reasons.