Empire Home Loans is a Mortgage Broker. What is a Mortgage Broker and Why Should You Work with Us?
The difference between a mortgage broker and a bank is that a mortgage broker doesn’t lend the funds for mortgages. Rather, mortgage brokers originate and close home loans between lenders and borrowers. Mortgage Brokers partner with a variety of lenders and can work independently or with a brokerage firm. At Empire Home Loans we are approved with over 40 lenders.
In contrast, a loan officer at a bank or credit union is limited to providing the loan products their employer offers.
A borrower who gets a mortgage from a bank may end up paying more because of the bank’s overhead. Instead, a mortgage broker might be able to get you a loan with a better rate from the bank’s wholesale division.
How a mortgage broker works
A mortgage broker works with everyone involved in the lending process – from the real estate agent to the underwriter and closing agent – to make sure a borrower gets the best loan and the loan closes on time.
A mortgage broker can work independently or with a brokerage firm as we do. Mortgage brokers research loan options and negotiate with lenders on behalf of their clients. A mortgage broker can also pull the buyer’s credit reports, verify their income and expenses and coordinate all of the loan paperwork.
We have access to a powerful and intuitive loan-pricing system, as well, which prices a home loan across many lenders at one time, thereby speeding up and streamlining the process.
Should you work with a mortgage broker?
Borrowers who use us, a mortgage broker, get the benefit of a more personal experience and having a licensed professional do the legwork for them. Data collected by the CFPB under the HMDA showed working with a mortgage broker can save you over $9,000+ in interest and fees over the life of a 30 year loan!
Pros of working with a Mortgage Broker
A mortgage broker can and does get you a lower interest rate and lower fees. Mortgage Brokers have access to a broader assortment of loans and lenders. Mortgage Brokers can most often find a better deal than you could get for yourself.
A mortgage broker can save you time. Mortgage Brokers do all the research on rates and fees; they negotiate for you and keep the mortgage process on track.
A mortgage broker can save you from making a big mistake. Mortgage Brokers can help you avoid pitfalls because they know the mortgage industry, the differences among lenders and the twists and turns in the mortgage process.
A mortgage broker can find the right lender for tricky situations. If your credit history isn’t great or the property you’re buying is unusual, a mortgage broker can find a lender who has more flexibility with credit scores and down payment amounts or who specializes in certain types of properties.