Let’s face it, getting a loan from a financier is not fun. No-one goes out of their way just to get a loan. Instead, we would all much rather focus on our dreams and our goals.
Finance is just the means to achieve our dreams and goals.
Plus, getting a loan is time consuming and there is always a level of uncertainty and stress until the lender says ‘yes’.
So why use a broker?
1. Using a broker is a great way to minimize your stress and maximize your prospects of a lender saying ‘yes’ – but like all things, you need to use the right broker: a broker who will work with you to get you a loan which is suitable for you. And, look after you along the way – even after your loan has settled.
2. Brokers have access to many lenders and therefore, many products. When you go to a lender, you only get a loan from their product portfolio. And, not all loan products have the same eligibility criteria and features. They can be similar but the differences can be important to your success in getting a suitable loan for you.
3. A broker has to ensure you have a loan which is suitable for you. A lender has no obligation to you to suggest you could get a more suitable loan from another lender. They are only obliged to say ‘yes’ or ‘no’.
4. Good brokers value their relationship with you, not just the loan transaction. Lenders (and even some brokers) are all about the transaction and the minute settlement occurs, you are no longer front of mind for them (in the case of a bank, you are a BSB and Account number!).
5. Brokers work for you. Your local branch officer does not. He works for the lender.
6. When doing it yourself, you have to work out what to tell the lending officer. Sometimes this may prove to be ‘too much information’ and sometimes it may be ‘too little information’. Either way, if you get this wrong….. Meanwhile, good brokers know what lenders need to know. Plus, a broker can workshop a loan with the lender to make sure all the right information is prepared the right way for presentation to the lender.
7. Brokers arrange loans for a living. They do it over and over again. When doing it yourself, you need to reflect back on (and remember!) ‘What did I do right last time?’ Plus, you still won’t know what you didn’t know last time…..
8. Brokers know that getting a loan can be stressful. Great brokers help you manage your stress by communicating regularly with you – they keep you ‘in the loop’. Transparency and objectivity are key traits for many successful brokers. Many of the compliments we receive from our clients focus on our communication skills and our ability and willingness to go ‘well beyond the call of duty’.
9. Brokers save you time. They do a lot of the work for you. They gather the information you need to give to a particular lender (the information required can vary from lender to lender), plus they present your information in a way which gives you the best possible chance of meeting the lender’s criteria. It is amazing what a good explanation can do to placate a lender who is uncertain as to whether to lend you money.
10. Brokers want to make sure your loan is being lodged with a lender who will say ‘yes’. Whilst there are no guarantees from a lender until they say ‘yes’, a broker can objectively assess all your information and have informal chats and even pre-present some information to the lender to make sure that your application is given the best possible chance of being successfully approved. And, a great broker will keep you in the loop during this process so you know what is happening.
11. If a lender says ‘no’, you need to start all the way back at the beginning – and repeat the process. A broker, however, has a lot of your information within their software systems and it is easier for them to re-apply with another lender without having to restart all over again from the very beginning.
12. Brokers are paid by the lender. Whilst there are some circumstances where you might need to pay a broker, these circumstances have to be set out and agreed to by you before you proceed with your loan application.
13. The interest rates you obtain for a loan product are the same as if you went directly to the lender. So there are no disadvantages price-wise in using a broker.