Why Use a Loan Broker?
- 24th September 2018
- Posted by: Loanable
- Category: Resources
You are in the market for a loan, it may be you are buying your first property and need a mortgage, or you may be a real estate mogul with a portfolio of 10 or more properties and are looking for either another buy-to-let mortgage, or perhaps a bridge loan to purchase a new property at auction.
Perhaps your business requires a loan, financing for new equipment, or a loan to aid with cash-flow.
You may just need a loan to buy a car, or maybe you wish to consolidate a few credit cards together for just one (1) monthly payment to save money each month.
For whatever reason, many of us at some point in our lives are going to require a loan, a request to be granted credit in the form of money to be borrowed.
And getting a loan should not be difficult, in theory.
You apply for a loan to (insert reason here), the bank or lender reviews your application, and based on affordability, credit score, and what loan terms you are looking for, make a decision to either grant the loan, deny the loan, or condition the loan (make changes).
You may seek out a loan for £10,000, but the loan is conditioned or granted for £8,000; which could be based on afford ability.
As a borrower you know what type of loan you may need, if not, you do know what the loan is to be for, so that helps in determining what type of loan you require.
If you want to buy a car, you need car financing.
If you wish to buy a property, a mortgage loan.
Businesses need business loans, you get the picture.
The question then becomes, where to not just get a loan, but where to get the best deal on a loan? Getting a loan that is tailored for you and your needs.
Sure, you can do some online research and apply around, but making applications here and there is time consuming, and also can damage your credit score by showing too many inquiries.
If there were only one place you could get information and seek out a loan, and know the loan is the one best suited for you and your unique situation.
That is where loan brokers provide a useful and unique service.
Not everyone apply for a loan have the same set of circumstances, such as credit scores, income, debt to income ratios, and also the type of loan and what they are using the loan for.
So just applying at a standard bank or lender, may not be the best option, especially if you have a very unique set of circumstances.
It may be your credit score is not as high as many lenders require. It could be you wish to remortgage a property, but your loan-to-value is not as high as some mortgage lenders will work with.
This is how and why using a loan broker may be your best option.
Loan brokers work with many different lenders, not just one or two that may only do car loans, mortgages, or personal loans. Brokers work with various lenders that may do specific types of loans, and they may also offer various loans, depending on the borrower’s requirements and situation.
Using a loan broker saves you time, time spent researching here and there, and also applying to various lenders, even ones that may not be right for you and the loan you are requesting.
It can be a game of hit and miss.
Then there is the nagging thought, did I get the best deal, the best loan deal for me?
If you as a borrower do not shop around, then how will you know if you did receive the best offer suited for you. By using a loan broker, they do the shopping and find the best lender suited for you.
And you may wonder how they do this, by using available technology, and knowing your exact needs and requirements, the broker can match you up with lenders that fit your requirements.
A borrower with bad credit, can be matched with lenders that offer bad credit loans, and work with borrowers that may be credit challenged.
If a borrower has excellent credit, they can be mated with lenders that offer the most competitive interest rates.
Business loans, car loans, mortgages, buy-to-let mortgages, and even speciality types of financing such as bridging loans and loans in principle for auctions, can all be handled in one place, by a loan broker.
Saving you time, and saving you money.