Meet Simon. Simon doesn’t like to be bothered, and he likes having people making his decisions for him. He doesn’t enjoy working hard when it comes to finance, it’s too boring and complicated. That’s what he claims at least. When Simon bought a place, he hired the first loan broker he could find, and literally took the first offer provided to him. He later said goodbye to his broker, and to all of his savings and moved on with his life.
Let’s get it clear, even if you plan on working with a loan broker, do your homework. It helps you asking the right questions, educates you with your upcoming loan and just makes sure you get the best from your broker. It’s really not that complicated, all you need to do is shop around. Compare what different lenders have to offer, how the conditions differ and get some understanding of what your broker is doing. Even commit for more, schedule some appointments or calls, get to ask the questions and explore what your attractive offers really are.
And please don’t do this rookie mistake of seeing one or two lenders and believing to what they have to say, because they are always the best in the industry. A little tip for life? They could end up being the lesser attractive loans you will find. When you do engage in a dialogue with a lender, try to understand how is the officer being compensated. The way his commission is built is very likely to determine which options will he present to you.
For shopping around you can use services that are unbiased, and you can find plenty of them online. Perhaps you don’t really need a loan broker, it could very well be that the process used to inaccessible for the common men for too long, but in 2017 things have changed. Even if you don’t end up taking a loan from any of those services, just the action of shopping around for lenders will force you put your feet in the water. You will be surprised with how your loan broker will not be speaking chinese anymore and how you could peacefully lean on his offers, or even challenge the ones he’s presenting you – so you can save your money.