Who is Your Commercial Loan Broker?

Commercial Loan BrokerWhat can your commercial loan broker do for you? That all depends on which broker you choose to do business with. As is the case for most things in life, there is a variety of financial institutions to choose from. However, not all brokers will provide the same options, variations on loans, and services. Each commercial loan broker will offer similar products and services, but no two will offer the exact same set of products and services. Thus it is important to analyze the advantages and disadvantages of potential commercial loan brokers before choosing one.

What will the broker finance? – Many brokers specialize in only financing certain types of opportunities and investments. For instance, you might be especially interested in making an investment in an income property, so you will require a commercial property loan. The commercial loan broker you are looking for should fit your needs and hopefully be willing to finance a variety of different income properties. Perhaps you wish to develop a diverse portfolio of income properties by investing in an array of apartments, hotels, office buildings, health care centers, and industrial spaces.

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Home Mortgage Refinance Loan Brokers

Home mortgage refinance is the process of taking a mortgage on the same property which was used as collateral for another mortgage. The loan obtained on the second mortgage can be used to clear the first mortgage. This enables the borrower to convert a high-interest mortgage loan in to a low-interest loan, thus saving considerably on the monthly payment as well as overall interest.

Home Mortgage Refinance Loan BrokersWith low interest rates, many people are refinancing their home mortgages. Refinancing is also one option to meet major expenses such as college fees or medical bills, or for debt consolidation. A person who has a previous home mortgage loan of $100,000 can take another mortgage loan of $120,000, pay off the first mortgage, and use the remaining $20,000 for meeting expenses. You can consider refinancing if the current interest rates are at least 2% less than the interest rate you are paying on the mortgage.

However, refinancing is not a very good option if you are planning to move out of the house soon, or sell the house. Also, consider the other costs involved in refinancing, such as pre-payment fees for the previous mortgage, transaction fees of the new mortgage, settlement costs, discount points and so on. Ensure that these costs are lower than the actual benefits from refinancing.

There are several home mortgage refinance brokers. It is very important to use the services of only registered brokers who have experience in refinancing. Refinancing procedures and laws are different for different states. A broker would be able to provide the right guidance for getting the best refinancing deal since he works with a number of lending sources. Services include pre-underwriting, access to a variety of lending programs, professional loan processing, redirecting the loan (if necessary), and others. There are exclusive mortgage brokerage agencies as well. Most of them have links with brokers in other states, thus enabling nationwide services.

A borrower needs to fill in a simple application form that includes the type of mortgage and terms of the loan, property information, and purpose of the loan, borrower information, employment information, assets and liabilities, monthly income and combined housing expenses, declarations, and other information for government monitoring purposes. These applications can also be done online. The Internet is a very good source for comparing home mortgage refinance loan rates.

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Loan Brokers – A Brief Guide

Just as there are literally hundreds of loan providers in the UK, there are also a large number of loan brokers around that could possibly help you make sense of all the different loan products available today. A good way of understanding what loan brokers do is to think of loan companies as cattle and loan brokers as cowboys – although you could find lenders yourself in the wild, it’s far simpler to have a broker round them up into a single ranch so you can see them all at once. Talk to a single lender and you’ll get a small number of loan options all provided by one company; talk to a single broker and you could end up with tens, if not hundreds of options all tailored to your specific needs. At least, that’s the idea anyway…

Unfortunately, the problem with loan brokers – as is the case in any field of business – is that among all the quality companies striving to provide a service to the best of their ability, there are more than a few firms out there ruining it for everyone simply by looking for a quick buck. Even worse, the rapid expansion of the internet means it’s a trend that’s got worse in recent years; companies pop up in search engines promising the moon, but ultimately leaving customers out of pocket just because they didn’t read the fine print (or, worse, understand it because it was written in a confusing manner).

Loan-BrokersNot surprisingly then, finding a reputable loan broker such as www.qpcard.se is absolutely essential if you want to not only find the best loan for you, but also prevent being taken for a ride and eventually ripped off. Part of finding one relies on good old-fashioned common sense – for instance, if you visit a loan broker’s website and it looks like it was put together in ten minutes by a trained monkey, you’re probably better off steering well clear. There’s also the matter of clarity over any fees or other charges that a loan broker may lay at your feet. These should be listed somewhere on a broker’s website, often in a section labelled Terms & Conditions, although an exact amount may not be available until you’ve been given a quote since the fee can be dependent on the size of your loan and the interest rate. In any case though, the rule is obvious: no mention of a fee (or the fact that there is no fee) means it’s probably best to avoid that broker altogether.

Beyond the obvious things though, finding a reliable broker takes a bit of digging. Relating back to fees, for instance, these should only be applied to you AFTER you’ve been accepted for a loan and have the money in hand – NEVER talk to a broker demanding money up front before it does any work for you, since there’s no guarantee you’ll end up with a loan that’s suitable for your circumstances! Find out this information by speaking to the broker directly, but don’t let them fob you off by saying they can’t tell you unless you’re a customer!

You’ll also want to find a broker that has contact with as many lenders across the country as possible, since that’s the only way to ensure you’re going to get a fair spread of loan options. The problem with some brokers is that by passing you onto a lender, they’re earning themselves a slice of commission should you end up taking out a loan through their recommendation; this then means that there’s a chance of them making suggestions based upon the commission they’ll earn rather than what’s right for you. Finding a broker that only asks you to pay a fee then rather than working on both commission AND fees is usually the best way to go.

Finally though, do some research on what other people think of the brokers you’re considering. Places like The Review Center are perfect for getting the lay of the land as far as brokers are concerned, so check out the comments and make a reasonable judgement – while no-one will ever please everyone 100% of the time, positive reviews will always show a good broker in the right light.

In Summary

Loan Brokers…

  • Can be a good way of collating lots of different loan options as quickly as possible
  • Vary greatly in reliability and competence across the UK
  • Need to have as many different lenders and loan providers on their books
  • Have to be absolutely clear about their charges and other fees BEFORE you agree to anything
  • Shouldn’t charge you any money before they’ve found a loan you’re happy with
  • May base their recommendations on the commission they receive, not what’s best for you!
  • Could be recommended by previous customers on review-based websites.
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