Most banks, savings and loans, and credit unions use the services of mortgage companies to perform what is known as the "origination" of the loan - to meet with and pre-qualify the borrower, verify the credit and property aspects of the loan, and then provide it to them for funding.  For performing this function, the lenders give us a wholesale cost, a cost that allows us to always be competitive with those lenders that utilize their own staff to perform the same function.

Internet lenders, while they do not have loan officers and save money by the elimination of that function, unfortunately must spend large amounts of money to market and advertise their website.  This keeps the cost structure basically the same as the traditional brick and mortar lender.   

It does not cost more to use the services of a loan agent with the ability to submit to several lenders.