Loan Brokers – What is Loan Brokerage?
A loan broker is a company that acts as an intermediary between the borrower and the lender. The loan broker enables the borrower to compare offers to find the most favorable loan. Since the lender pays for the loan brokerage, the service is completely free for the borrower.
A loan broker does not therefore lend money, but the purpose of loan brokering is that you as a borrower can compare different loan offers just like comparing prices on flights and hotels online.
How does loan brokerage work?
When you apply for a loan through a broker, all the banks and lenders that the broker cooperates with get the chance to offer you a loan. In the application you fill in how much you want to borrow, what repayment period you want and your personal financial information. Within minutes, you will receive answers from the lenders who want to offer you a loan and you can calmly choose the offer that suits you best. If you find a loan you want to accept, you sign the loan agreement and have the money in the account within a few days.
You do not commit to anything when you submit the loan application, only a credit report is made and the application is completely free as the lenders pay the loan intermediary for the customers they receive through the service.
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Why should I use a loan broker?
There are many benefits to using a loan broker. The main thing is that by comparing lenders you increase the chance of finding the most advantageous loan offer .
Because different lenders target different types of customers , a loan broker makes it easier for you to find the lender who can offer you the best loan terms. Just because your friend or family member got a cheap loan from a bank does not mean that it is a cheap alternative for you compared to other banks. At the same time, lenders are exposed to competition, which in itself can push down interest rates.
Visiting a lender to negotiate a loan will in most cases also mean that you are in a knowledge-based disadvantage as you do not know what a good interest rate is in relation to other lenders. By using a loan broker you solve this problem and at the same time you do not have to bargain and negotiate directly with the bank .
Did you also know that it is practically impossible to make a comparison on your own ?
If you take the matter completely into your own hands and visit a large number of lenders to negotiate loans, you will soon find yourself in a problematic situation where your credit rating has failed. For each lender you visit to apply for a loan, a credit report is taken. For example, when you arrive at the seventh lender and they take out a credit report on you, they will see that you recently applied for 6 other loans. However, the lender cannot see if you have accepted these loans and therefore lowers your credit rating as your debt burden may already be very large. This makes it difficult to get a loan granted and even more difficult to get an offer with good loan terms. Since a loan broker makes sure that all the lenders you apply for loans with parts of one and the same credit report, you do not have to worry about this problem.
Anna Lop has been around since 2011 and was among the first players in Sweden in the field of loan brokerage. Our vision is that everyone should understand how they can improve their personal finances. Anna Lop has invested heavily in the training of advisers and advisors in order to be able to offer our clients the best possible assistance in the loan application and choice of loan offer. The company is under the supervision of the Swedish Financial Supervisory Authority for your security. Today (updated July 2019) Anna Lop collaborates with 38 banks and lenders, which is significantly more than most mortgage lenders in Sweden.