Anybody who has decided to get finance knows how complicated the task is – with dozens of different lenders and hundreds of loan products, it really can be difficult to find a loan that suits your situation. It’s part of the reason why around 40% of mortgages are applied for through a finance broker. Other reasons include:
Finance brokers typically have affiliations with many lenders – therefore they can offer a greater range of products than a single bank. Researching the offerings of each bank can be quite time consuming, and to be truly educated you’ll have to spend a lot of time researching factors that could influence your decision: such as individual bank policies, application procedures and changing products. A finance broker will be knowledgable in all of these areas, thus saving you the time and headache of having to go through it all yourself.
Finance brokers are compensated by the banks and other lenders when a loan is approved, therefore you typically won’t be charged for their services, nor do you pay a higher interest rate or pay more fees by going through a broker to get a loan. Please note that some finance brokers may charge fees depending on what loan product you need and how much work is required on their part – make sure to ask your broker if they intend on charging you for their services.
As finance brokers already have an existing relationship with banks and other lenders, they can sometimes negotiate special deals on your behalf, as well as fight your case if you happen to have bad credit. Certain factors that the average person wouldn’t think about or deem to be important in taking out finance (such as why an applicant is un-employed, etc) a finance broker will pick up on and highlight to the banks, which might make all the difference in getting your loan approved.
Most people wouldn’t think of banks as providers of great service. Finance brokers, on the other hand, have a big incentive to make sure that you get a loan and that you’re happy with their service, as they make a commission for approved loans. Smart brokers know that if you’re happy with the service you received, you’ll then tell your friends about the loan you got from them – which results in more business for the broker. Successful finance brokers place the satisfaction of the client at the center of their business – it’s a win for them, and a win for you.