If you are about to make any investment and are looking for loan brokers, then there are certain things that you must know. One such important thing to know is the different kinds of loan brokers. This post is going to guide you through the different types of brokers in the loan market to get the best sme loan Singapore. Out of the many different types, you have to choose the one as per your requirements. Keep reading to know more about the different types of loan brokers:
- Correspondent Brokers
These brokers are needed when you have decided to get a mortgage loan. They act as money lenders at the initial stage and then redirect the customers to the mortgage market. Hiring these brokers can be very beneficial for you and you can trust them with all your details.
- Warehouse Brokers
Warehouse brokers support the other money lenders in funding their loans by providing a short period of funding. The credits taken for warehouse purposes are paid back once a loan is released in the market. Warehouse brokers differ from correspondent brokers in terms of customer interaction. Warehouse brokers never interact directly with the customers just like the correspondent brokers do.
- Hard Money Brokers
Hard money brokers have to be your last resort if you are not able to complete the paperwork required for getting the loan granted from an official source. Such lenders are mostly privatized companies or individual persons who have a good amount of reserved cash. Hard money loans must be paid back in a handful of years to avoid paying a greater interest amount. Hard money brokers offer flexibility and can shut down your loan quickly but they have a major drawback that is they charge very high rates of interest and everyone can’t pay much higher interest rates along with the principal amount.
These are some very popular type of loan brokers available in the market. Apart from these, there are several others too but not all are so prevalent as these are. You can choose the type of loan broker you need according to what your needs are and the purpose for which you want the loan.