of Using A Loans Professional
When it comes to obtaining a loan there
many people run blind and do not have the first idea about
the process or even who to go to. When applying for a
personal loan or a home loan many consumers will go to the
financial institution where they have their bank account.
Whilst this is logical it is not necessarily smart. Just
because you bank with them does not mean they will lend you
Then there is choosing a lender because
they are the ones you remember for the most recent
advertising. This is great for the lender because they are
potentially gaining new customers however this may not be
the best choice for the consumer.
A major disadvantage of you shopping
around for a loan is you unwittingly will obtain credit
inquiries on your credit file. The more inquiries you have
on your credit file the more difficult it is to get a loan
as lenders see you are shopping around and deem that as a
When looking to obtain a loan whether it
be home, personal or business you should be looking to a
Loans Broker or a Mortgage Broker (one of the same in many
instances). Not all loans brokers will cover all types of
What a Loans Broker does is the hard work
you really don't have time to do as a consumer. A Loans
Broker is required by law to provide you with guidance and
advice that will put you in a better financial position to
what you are in now. They will ascertain your current
financial situation, contact a number of lenders on your
behalf, complete application forms and act as an
intermediary between you and the lender.
A good Loans Broker will ensure you are
informed. They should be demystifying the process of
obtaining a loan and most importantly taking the stress out
of obtaining a loan.
Using a Loans Broker means you do not
have credit inquiries on your file unnecessarily. This is
because a good loans broker will have relationships with
lenders that ensure they have a high amount of certainty in
your obtaining a loan before applying.
The cost of using a loans broker to the
consumer is generally free. The lender pays the loans broker
at the time of settlement and this does not effect your loan
cost at all. This information is fully disclosed to the
borrower. In some instances there may be an upfront fee
however your Loans Broker will disclose and discuss this
So if you are looking to borrow money
don't go to the first lender that comes into your head. Go
to your Loans Broker and get the advice that will save you
stress and your credit file.