I am a lender with 15 years experience, and can maybe shed a bit of light.
The definition of a mortgage broker/banker/lender can really get confusing, but in the end, most of us do the same thing. It’s just a difference of the means to that same end.
The definition of “broker” typically means they have parternships with investors and they do not lend any of their own money. So if you work with Joe from XYZ Brokers, at closing your documents will be in the name of whatever investor he chose (Chase, Wells Fargo, SunTrust, and a HUGE host of others.) Joe’s company has NONE of their own money to lend.... they are just the middle man so to speak.
A banker or direct lender MAY STILL use a variety of mortgage investors, and have the same options as as a broker. The difference is that a banker will “fund” the loan in their own company’s name, instead of the name of whatever company they are brokering to.
There is not necessarily a wrong way to go here... each type has their own pros and cons.
If none of that makes sense.... just know this: find an experienced loan officer that you know, like, and trust, and you should be fine, no matter what kind of company they work for.
A prequalification or preapproval should ALWAYS be free (in my opinion.) Most loan officers work on commission, which means we only get paid once your loan closes and funds. We provide all of the upfront work for free, in expectation of getting paid when all is said and done. If you are being charged for a prequalification/preapproval, I’d suggest you RUN to another loan officer.
Appraisal fees can vary significantly depending on the region you live in. Truly, that range can be from $350 - $900 or so. Some companies charge the upfront appraisal fee, and some don’t. The logic is solid... the appraiser will have to get paid if they have done the work (regardless if you eventually purchase the home or not), so some companies collect the funds upfront in case the deal falls through.
Happy to answer other questions if you have them.