Whether you’re applying for a home loan, a car loan or another loan, your search could be made much easier and faster by going through a broker. From finding out what type of loan would be best for you, to searching for loans and negotiating with lenders, to making your application, a broker is with you every step of the way.
What does a broker do?
A broker you say? What exactly is a broker? A broker works as a kind of ‘middle-man’, between you and your lender. If you’re applying for a home loan, your broker can also liaise with your conveyancer or solicitor.
A broker does not supply loans, a broker helps you work out what you need, and will search for loans for you. A broker offers advice, helps you work out what you can afford to borrow, and when it comes to making an application, a broker will make sure all your paperwork is in order.
Now that’s clear, let’s look at the top seven benefits of securing finance through a broker.
Seriously, this is their job. A broker’s business is knowing what loans are out there, where to look for the best loans, and how to find the loans that would best suit your needs. They do this every day, which is why they can do it much quicker and much more efficiently than you.
While there are time-saving tools for people searching for loans on their own, such as online loan calculators and comparison sites, it still takes time to look through all available options. A broker will also take into account loan features, interest rates and key fees and charges, which may be missed by borrowers searching for loans on their own.
It’s not only the search process that is quicker, going through a broker means the application process is quicker too. A broker will tell you exactly what needs to be completed in the application, and what paperwork is required.
Who wants to spend more on their loan than they need to? A broker can make sure you find the best loan for you – at the cheapest price. Because they can search through more loans more quickly, brokers can find the best deals for their clients.
If you go through a broker, you will not usually have to pay a fee for their services (that fee is usually paid by the lender). However, it’s worthwhile checking whether your broker will charge a fee, and what commissions they receive.
Getting a home loan can be a daunting process. Even if you are applying for a personal loan or a car loan, you may have a heap of questions you want to ask. One of the best things about going through a broker is the fact that they are always on-hand to answer any questions you may have. A broker can also help you decide how much you can afford to borrow, and can go through the benefits of any loan features that you may need.
When you search online for loans, what you see is what you get. If you don’t look in the right place, you won’t find special deals or extras. Brokers know the loans market, so they know what deals are available, and where to find them. That means you can benefit from the best deals on the market without even breaking a sweat.
Negotiating with Lenders
How experienced are you at negotiating with lenders? If the answer is very, then you shouldn’t have a problem getting the best possible loan from your lender. However, most people looking for a loan are not that experienced in the art of lender negotiation.
Brokers, on the other hand, have that experience. A broker will negotiate with your lender to make sure you get the best loan features, the lowest interest rates and the lowest fees.
Liaising with all parties
When you apply for a home loan there can be a number of parties involved, which means a lot of back-and-forth organising, arranging and negotiating. Not only is this daunting, it is also time-consuming and stressful.
A broker can liaise with your lender, your solicitor and your conveyancer, making sure all boxes are ticked, taking the stress out of applying for a loan.
Completing the application
Another stressful part of applying for a loan – especially a home loan – is the application process. Each lender has a differing application process, with different application requirements, which can make the process of applying very stressful indeed.
A broker will know exactly what is required for your application, what paperwork has to be completed and what documentation has to be provided.