Wholesale Mortgage Brokers vs. Retail Mortgage Lenders

Many homeowners confuse the difference between a Wholesale Mortgage Broker like Equity Capital Home Loans (ECHL) versus Retail Lenders/Banks. We will focus on explaining the differences between the two, so that homeowners understand the advantages and make an educated decision for themselves.

Mortgage Brokers

Mortgage Brokers work as middle person between Homeowners and Wholesale Mortgage Lenders to secure the best interest rate with various options for homeowners. Listed below are the benefits of working with a Broker:



Retail Lenders/Banks

On the other hand, Retail Lenders/Banks work directly with the homeowners to provide financing options on the Retail Level. There are a few disadvantages working with these types of lenders, for instance, their operations are designed like a Customer Call Center Assembly line. A homeowner will not have a personal experience in this type of environment. You are just considered a “deal” and not as an individual person. Most Retail Lending Representatives are eager to run your credit and obtain your credit card information to get you to commit without first understanding what your needs are. Can you blame them? It’s not their fault. These Lenders set unattainable expectations for their sales force and are required to acquire as much business as they can or they run the risk of not meeting their tiered quotas. In turn, this makes the typical Retail Lender Experience a non-personal one. “Too many hands touch the pie” is a common practice with these Retail Lenders. From the moment you speak to a Retail Lending Representative, your loan is scheduled to become part of the Retail Loan Assembly line. This further creates a less than personal experience as you are no longer dealing with your initial lender representative. This also creates room for a lot of information to be misplaced, mishandled or miscommunication with all parties.  Most homeowners turn to these Retail Lenders as they may be the most obvious choice, because of Radio/TV Ads or products offered at their existing bank. What most homeowners don’t know is that these lenders typically charge higher commissions as they do not need to disclose them.


Consider this simple scenario:

You decide you are ready for a Refinance and begin shopping around. A Retail Lender/Bank offers you a scenario and states that it is the lowest rate with no costs available. You decide to move forward with the Retail Lender/Bank based on said information; however, you happen to know a local Mortgage Broker and request he/she look at your Loan Estimate. The Mortgage Broker specifies that a better option is available from their Wholesale Lender Channel. You are confused and ask why? The answer is simple, Retail Lenders/Banks will not get anything else out of your “1” loan. It’ll be a “One & Done” type of scenario. On the other hand, Wholesale Lenders know that Mortgage Brokers have their own book of business and can easily send them 10 – 20+ loans a month, so they offer Wholesale Interest Rates to compete with other Wholesale Lenders for your business.

This practice is very simple and it is the main factor on getting a lower interest rate for you.

A Personalized Experience:

Whether you’ve been turned down for a limited or blemished credit history, little to no down payment or the need to reduce closing costs, ECHL will provide a solution to your problems by creating a more personalized loan experience for you and your family. Allow us to take all the stress out of shopping for a new home or simply the stress out of refinancing your existing home. We are true to our word and want to be your Foundation to Homeownership.

ECHL has access to far more loan products and types of loan program options than a Retail Lender, whether you are a homeowner with less than perfect credit, wanting alternatives to PMI or interested in down payment assistance programs, we will consider your scenario and help you understand the loan process.


A Retail Lender may have previously turned you down without an explanation, simply advised that your score was too low or that your income was not sufficient. Whereas ECHL will make recommendations like paying down a few accounts and place you on a path to success for the future. We will go the extra mile for you.



Pre-qualify for a loan in a few simple steps

Get Started

Complete a Secure Application

Apply Now

See what our clients are saying:

Success Stories