How to choose the right loan advisor?

It’s hard to find an advisor who will genuinely want to help and not just make money off you. Sometimes an inexperienced advisor might actually make things worse with all the questions or extend your time of waiting for a decision so much that it hurts. What to take into account, then, when looking for a good financial advisor, especially when you’re already looking for a loan?

Who is a loan advisor?

A loan advisor is a specialist who helps their clients make different types of financial decisions. As the name of the profession indicates, such help mostly relates to taking out a loan, paying it back later and organizing your home finances. You often hear about how some of loan advisors don’t actually help their clients, but instead direct them towards specific financial service providers to earn a Commission. Such situations may not occur very often, but it’s still something to keep in mind.

How to find a reliable advisor?

The loan market offers plenty of solutions, but the problem arises when you have to choose a particular offer. Remember that a mortgage loan should be custom-fit to your needs and financial capacity so that it doesn’t put too much strain on your home budget. You’re wondering what terms of repayment will be most convenient and what to pay attention to when buying an apartment? A reliable advisor can help you choose an optimal offer. Whom to entrust this task to? Professional knowledge is one thing, trust is another. Combining both is the best solution.

loan advisor

What is a financial advisor responsible for?

Among the tasks of a financial advisor is analyzing the client’s needs and credit history, then verifying the bank offers – an individual match. Through a conversation, an expert finds out if the client prefers a fast or the cheapest solution. Then, based on the loan profile, the right strategy of action is created that allows to move on to the first formalities.

It doesn’t take long to hear back from the banks with their offer: in many cases, the advisor gets them as early as after 24 hours. The more offers, the more possibilities of getting favorable financing. The expert’s responsibility is to point to Loan conditions that fit the client’s needs.

Questions you should ask your loan advisor

The questions that, among others, a well-prepared loan advisor should be able to answer:

  • What type of financing does the bank currently have in its offer? Do they offer loans with a fixed or a floating interest rate? Are there expandable loans available? What other loan plans does the bank have in its offer?
  • What is the loan period for every type of loan? Does the loan period for floating interest rates have a fixed length or is it possible to adjust it? Is the interest rate lower for a shorter loan period?
  • What criteria does the bank take into account when determining the creditworthiness?
  • What is the required minimum own contribution for every type of loan?
  • Does the bank charge a Commission?
  • What is the bank’s profit margin for every type of loan?
  • Is there a fee for reviewing the application? How high is it?
  • Can the advisor provide information on the value of loan-related costs relative to the house’s selling price?
  • Does the bank charge a fee when any of the loans is repaid early?
  • How long does it take to give a loan decision from the time of filing the application?
  • Will the loan offer Remain valid for the duration of looking for the realty?