Despite their popularity, loans are often areas we do not think through thoroughly enough. If we are not careful, loans can leave us in worse positions than before. Even before we apply for a loan, we should be considering what qualities we’re looking for in a broker or loan officer.
Loan officers serve as a go-between for lending institutions, like banks, and borrowers. They help make loan transactions easier, for both parties.
Lacking certain qualities means we, as borrowers, are in danger of losing our money, being in perpetual state of debt, and so on. Therefore, in an effort to curb such a scenario, a broker or loan officer should these kinds of qualities.
Transparency
A broker that refuses to disclose his or her documents often has little reason to do so. We should be sceptical about how they’re handling the transaction, when they do not provide details or documents of their current actions. These are more likely to undermine your interests for theirs.
Document care
Does the broker or officer keep a careful record of all transactions? Do you feel that you are able to call on the officer for any of the records made so far? If not, it’s either sloppiness or they do not have your interests at heart. Documents are essential in order for you to operate with the best available knowledge.
Locking the rate
Quality brokers will lock your rate, despite ambiguity of current financial situations. They should be able to negotiate what will benefit everyone, regardless of whether the financial situation is stormy or calm. Locking it means you are protected and they are not trying to get away with deception.
Referrals not soliciting
Those who you are referred to usually are safer, less suspect, brokers than those who solicit you as a potential borrower. This doesn’t mean every organization that advertises is bad or suspicious; but those ones which only solicit, who you might not have heard about before, are certainly ones to be weary of.
Calculations
To calculate loans, different organizations use different metrics. Generally, a chart or table, which is reused, indicates a broker or officer as a safe investment of your time. The alternative is having calculations that are less concrete, more fluid, leading to more risk on your part.
Hard facts not “psychics”
Anyone who is able to offer you a quote without first assessing your financial situation is also someone to be weary of. After all, if they don’t know what kind of customer you are, how are they to know you are able to repay and be an ethical customer? If they’re not interested, it either means they’ll make bad calculations demanding reparations which, if they’d assessed you properly, they would know you do not have, or, they simply are looking for a nave individual to exploit. Therefore, avoid “psychic” brokers and officers, who appear to have your info without you having given it.
These are some points to look for when considering loan officers and brokers: by making sure these people’s qualities check off this list, we make ourselves and our families safer.
Terrence is a long-time writer and reader, focusing on interesting and important ways to better society and others.