Loan brokers: questions to ask before using an intermediary

A loan broker or intermediary can help present an application or compare products, but the service needs its own assessment. Before sharing documents, establish who the business is, what role it performs and which providers it works with. Do not assume that a comparison covers the entire Lithuanian market or that its first result is the cheapest.

Understand the service and payment

Ask whether the intermediary receives a commission from a lender, charges you directly or uses both arrangements. Request the amount or calculation method and when a fee becomes payable. Clarify whether you owe anything if no loan is approved or if you decide not to accept the offer.

Ask which lenders or product types are included and how offers are selected. A commercial relationship can affect what is shown. Compare the final agreement independently using the same amount and term, BVKKMN, fees and the total amount payable.

Keep control of the application

Find out which organisations will receive your information and whether several applications will be submitted. Read the data-processing information and give accurate income and obligation details. Do not allow someone to invent earnings or hide debts in order to improve the appearance of an application.

An intermediary cannot guarantee that a lender will approve a loan or ignore its eligibility and affordability assessment. Be cautious with demands for an advance payment tied to guaranteed acceptance, particularly from an unverified contact. Verify the legal entity and relevant status through official information.

If the service concerns refinancing, compare the complete remaining cost of old debts with the complete replacement cost. A lower monthly payment may reflect a longer term and greater total expense. A broker’s assistance can simplify administration, but the borrower still needs to understand the agreement and decide whether the commitment is manageable.