5 Mortgage Broker Myths BUSTED!

Using the services of an accredited and licensed Mortgage Broker like Home Reliance Capital can save you time, stress and potentially thousands of dollars. The dedicated professionals at HRC will take the time to educate you on the process and let’s face it: informed borrowers make better decisions! First, let’s put a few misconceptions about Mortgage Brokers to rest.

MYTH ONE:  MORTGAGE BROKERS CHARGE A FEE
A common misconception is that borrowers will pay extra fees and charges when getting a home loan through a broker. The truth is that we do not charge any fees! You will get the same pricing going through us as you would had you gone directly to your bank. The way mortgage brokers get paid is through commissions paid from the banks as the lender, not you, as the client. The banks give us a share of the profit that they make so there are no hidden brokerage charges and the banks do not load up the interest rates on broker introduce loans – the pricing is exactly the same!  Who knew?  Now, you know!

MYTH TWO:  BROKERS ARE SHADY
We admit it. Our industry gets a bad rap.  We’re kind of like the used car dealership of the financial world.  While we can’t speak to the legitimacy and ethics of all mortgage brokers, we can tell you that all Home Reliance Capital Corp brokers are licensed and bonded in New York State and our license number is clearly show on our web page.  We must meet compliance requirements and are subject to regular audits. Our reputation in this industry is what keeps us successful and we would never do anything to undermine that privilege.  We encourage you to look into our company background and speak with former satisfied clients for references.  Your comfort level and trust in us is paramount to a successful outcome.

MYTH THREE:  BROKERS HAVE ALLIANCES WITH INDIVIDUAL BANKS
We want to make this very clear. We are not owned or even partially owned by any bank. We are completely impartial and do not have allegiances to any one bank over another. Our job is to find you a solution for your individual lending need. Each customer’s situation is different from the next so we will never adopt a one size fits all approach.  Ever.  

MYTH FOUR:  MORTGAGE BROKERS ARE A LAST RESORT
Nope.  We are just an alternative to the bank, or in short, another option.  Some people think you would only use a broker if you have tried all the banks and cannot get approved. In fact, quite the opposite is true. By going to a broker like Home Reliance Capital first, you have the ability to shop around prior to submitting any applications. Our advantage is in our ability to complete an in-house assessment of your application and then recommending a bank to you based on our prior knowledge of all the different bank policies. This means you have a better chance of getting approved first go.  Plus, we do all the “heavy lifting” for you.  Since we are an independent agency, we know what banks require what paperwork and we can package your loans accordingly in order to speed up the process. We pride ourselves on an average close rate of 20 days.  Now, doesn’t that sound great? We think so.

MYTH FIVE:  BROKERS LODGE SEVERAL APPLICATIONS TO A NUMBER OF BANKS                    In the industry, this practice is known as “hitting and hoping”. It’s like throwing a bunch of cooked spaghetti against a wall to see how much sticks and frankly, it is unethical and not something Home Reliance Capital participates in. The practice of hitting and hoping has been stamped out of the industry long ago through regulation and compliance. We don’t need to “hope” because we have excellent applied knowledge of the lenders we use regularly.  Hope is for those who aren’t experts in their field. We are experts and while it’s always nice to have a little luck on your side, we simply don’t require it…and neither should you.  Know that when you are with HRC, you are in the hands of some of the most competent brokers in New York state.  

If you are considering the use of a Mortgage Broker don’t hesitate to give one of our professional Mortgage Brokers at Home Reliance Capital an ‘obligation free’ call to discuss your lending options. We would love the opportunity to show you that YES, YOU CAN be approved for the financing you require.