There are important moments in our life when the help of a professional such as a loan broker is important. We explain how loan intermediaries work and how to apply for a loan with their help.
If, for any reason, you have trouble getting a mortgage or loan, the financial intermediary or loan broker enters the picture . A professional who can help you increase the chances of achieving the credit you are looking for. Join us and discover everything you need to know about this figure in the world of loans and mortgages.
What is a loan broker?
The cinema has presented us infinitely many times the character of the Wall Street broker. A financial advisor who acts as an intermediary between investors and sellers of stocks. Each broker is responsible for capturing the best investments for its clients and that is what the loan broker does.
This figure is in charge of looking for a mortgage or financial loan that fits both our economic profile and our objectives. In fact, the loan broker can help us obtain a mortgage or personal loan if we do not have savings to meet the 20% of the cost of a home that is currently required. In a way we can say that this intermediary is also a facilitator.
Depending on the work that this financial advisor performs, we can create four types of intermediaries:
- The banking agent who is only dedicated to helping his clients from a financial agency to find a loan or mortgage that fits what they are looking for.
- Agencies dedicated to real estate
- Linked financial intermediary . This profile has links with the banking or financial entities and they charge their fees directly from the bank and not from the client. Your obligation is to submit a minimum of three binding offers. An example is the Hipoo company.
- Independent financial intermediary : it is the most common and it is about professionals or companies dedicated to independently advising on which are the best mortgages or loans available. They collect their fees directly from the client and, like the previous ones, they must submit 3 or more binding offers to us.
In the same way that there is a registry of real estate agents (API) in the United States, there is also an official registry of the Bank of United States of all companies or professionals that engage in this type of activity in more than one autonomous community. .
On the other hand, if they only operate within the scope of a single community, they must be registered in the official registry of each autonomy. This way we can avoid the appearance of possible pirate companies and only trust officially registered brokers.
Find your online loan broker
In Taichi Arts you will also find loan brokers dedicated to fast loans online. Some of these entities are:
- Credit Party
Differences between loan broker and mortgage advisor
Once explained what the loan or mortgage broker explicitly does, the doubt assails us. How is this figure different from the mortgage advisor? Is there a noticeable difference?
As we have explained, the mortgage broker is an intermediary between the client seeking a loan and the banking or financial entities , adjusting that loan to the client's needs.
Instead, the mortgage advisor is a professional who is dedicated to helping clients achieve the best possible mortgage , but also the one that suits them best from among the financial institutions with which they work. This other professional in the sector with very extensive knowledge. It is common for this job to be performed by economists or lawyers with extensive knowledge of the real estate market and mortgage conditions.
The main difference between these two profiles is that the mortgage advisor works with a certain number of entities, while the broker can work with both banks and independent entities or even have their own financing fund and offer us a loan under different conditions than those of the market.
Why am I interested in the services of a loan broker
Having known the differences between the two main types of professionals in the mortgage sector and dedicated to loans, let's now know what are the reasons why you should trust the services of a mortgage or loan broker .
You must go ahead that it is not always convenient for us to go to this type of professionals. In fact, we can get a loan in good condition without the help of a professional. For this, we recommend that you know tricks to grant you online loans . But there are conditions that may require the collaboration of a broker:
- Young people : unfortunately the job market for young people is not very stable, nothing to do with the situation of the previous generation. Consequently, a young person can reach the age when they want to buy a house with little work seniority, no permanent contract and no savings. This makes it extremely difficult to access bank mortgages or some types of loans.
- Poorly defined employment situation : if we are not young, but our employment situation is not as stable as we would like, we may have problems accessing a mortgage. In this case, we may be interested in requesting the services of this professional in the sector.
- If we do not have savings or our savings are insufficient : as we have said, there are entities that offer mortgage intermediation services that also have the possibility of offering us mortgages. If we do not have the possibility of delivering the minimum input that traditional banking entities require in order to carry out the mortgage process, we can resort to one of these entities that offer 100% mortgages
- We are in a file of defaulters : the loan broker can tell us loan offers that fit your situation.
Remember that when you want to apply for a loan, it is a good idea to start down the road using a loan comparison tool. Thus, you will be able to know in advance whether or not you will need the services of a loan broker or if you can carry out the application successfully only with your savings and current solvency.
The loan broker is not a miracle professional
Once you have explained what a mortgage broker is and which are the cases in which you may be interested in using their services, it must be remembered that an intermediary of this type is not a miraculous professional. Hiring a loan broker does not guarantee that we will achieve the financing we expect if our creditworthiness is not good or our profile is negative. As in the case of personal loans, being part of a list of defaulters such as RAI or Credit Checker or having a bad banking history can be an impediment when looking for financing.
The loan broker can also help you if you are part of a delinquent file although, as in the case of quick loans, the conditions may be less favorable.