If you are searching for a loan that comes with incredibly low rates, then you have probably heard of Loan Factory.
Loan Factory is a company that uses multiple lenders in order to be competitive. This gives them the ability to offer their customers loans at a rate much lower than other companies.
They aren’t like most loan companies as they do not fund the loans themselves. Instead, Loan Factory is the middleman that negotiates with loan companies for you, allowing them to get the best price possible.
So, if you are interested in taking out a loan, then you have likely considered Loan Factory.
But, before you take out a loan with this company, you probably want to know what you are getting yourself into. So is Loan Factory a good company?
In this guide, we’ll be reviewing Loan Factory to decide whether, or not, they are a good company. If you want to find out more, keep on reading.
What Is Loan Factory?
First, let’s take a look at what Loan Factory is. As we have said, Loan Factory is a company that acts as the middleman between you and lenders. Instead of you having to individually approach loan companies when you are looking for a loan, Loan Factory does the work for you.
So, you approach Loan Factory regarding a loan, and then they will speak with 37 different lenders to get the most competitive rates possible for you.
When you are looking for a loan yourself, it is easy to just settle. You might not want to go through the hassle of trying to find a loan with good rates, so instead you settle on one that has alright rates.
In the short term, it won’t seem like a big deal. But, in the long term, you might end up paying a lot of money in interest on these loans, and then you will regret not shopping around.
If you use Loan Factory, then you will be able to get a loan at a good rate without all the additional effort. They even take a lower profit to ensure that you save money. But, what exactly does Loan Factory offer? Let’s find out.
What Do Loan Factory Offer?
As their name suggests, Loan Factory specializes in loans. The company is in contact with 37 different lenders, and this allows them to get highly competitive rates.
These rates are made even more competitive by the fact that Loan Factory take a reduced profit to ensure that you save as much money as possible. But what loans do they offer?
Well, Loan Factory actually offers two loans. They offer loans for refinancing, and they offer loans for buying a home. In order to get either of these loan services, you must apply via the Loan Factory website.
There is a form that you must fill out in order to apply for both of these loans. If your application is successful, then you will be a client of Loan Factory, and they will use your details in order to get you the most competitive loan possible.
Depending on the type of service that you choose, either refinancing or buying a home, different personal details will be taken from you. These personal details will then be used to set you up with a suitable loan company.
They essentially operate as brokers, working to make sure you get the best deal possible.
Where Does Loan Factory Operate?
As you would probably expect, Loan Factory is an American company. They are based in the USA, and they have a number of offices across the country. They also have a website which you can use to apply to be a client.
Alternatively, you can complete this application by visiting one of their branches. So, where does Loan Factory operate?
Loan Factory has a number of branches across the USA. A lot of their branches are located on the West Coast, but you will find them in States all across the country. The company has one, or more, branch in all the following States:
- New Jersey
- And Washington
So, no matter where you are in the country, you will be within a relatively short distance of a Loan Factory branch.
But, even if you consider your nearest branch to be too far away, you can still get in contact with Loan Factory through their website.
Reasons For Using Loan Factory
So, why might you consider using Loan Factory? Well, there are lots of reasons why you might use this company that don’t generally correspond with the pros and cons of it.
The reasons why you might use Loan Factory are the same reason why you might use any loan or mortgage broker. But, if you aren’t familiar with this, what are the main reasons? Let’s take a look.
- Better Knowledge
The main reason why people choose to use loan/mortgage brokers is because they have better knowledge.
Without doing a lot of research, those of us who don’t work in finance will not really know the ins and outs of loans.
But, loan brokers and mortgage brokers work in finance every single day, so they have a lot of knowledge - it is literally their job.
While you might not have much knowledge of what a good interest rate is for a loan, your loan advisor will.
This means that they will be able to get you much more competitive rates than you would ever be able to get on your own. This is the main reason why people use them.
- Save Money
But of course, this isn’t the only reason. Another big reason why people use loan advisors is to save them money and get them better interest rates.
In the long run, lower interest rates can save you a lot of money when it comes to repaying your loans because the monthly payments will be much lower.
- Save Time
Finally, using a loan broker, like Loan Factory, will save you a lot of time. If you are looking for a loan yourself, then you will need to do a lot of research, and this is time-consuming.
But, if you employ the help of a loan broker, they will do the research for you. They will even do the loan application for you too. All you need to do is keep in contact with your advisor and give them the necessary information as and when they need it.
Now that we’ve taken a look at what Loan Factory is, and why you might use it. Let’s take a look at the pros of using this company. So, if you have considered using Loan Factory, this is why that is a good idea.
- Outstanding Rates: The main selling point of Loan Factory is that they are able to get outstanding rates on loans and mortgages. Loan Factory is able to get rates on loans that outsiders would never get because they are in contact with so many different lenders. This means that they are able to use different quotes against different lenders in order to get competitive rates that are as low as possible.
- Top Originators #1 Broker in the US: If you visit the Loan Factory website, you will see that they proudly announce that they were ranked number one broker in the US by Top Originators. They were granted this award in 2019, 2020, and 2021, so the company must be doing something right.
- Access to Lots of Lenders: But, one of the best things about Loan Factory is that they have access to 37 different lenders. These lenders include Sprout Mortgage, JMAC Lending, Flagstar Bank, and lots more. A number of the lenders that Loan Factory has access to are high profile, and this means that they can use their rates against each other to get them as low as possible. So, the fact that they have access to lots of lenders is hugely beneficial to you as a customer.
But, no company is perfect. For that reason, let’s take a look at some of the cons of using Loan Factory to take out a loan.
- Broker Fees: The main disadvantage of using Loan Factory is a disadvantage that is true of all brokers, and that is that you will have to pay a fee. If you take out a loan yourself by speaking directly to the lender, you will not pay a fee. But, with Loan Factory, you will have to pay a fee in order to cover the work completed to find you a good interest rate, and submit your loan application.
- Access to Fewer Lenders: While Loan Factory has access to 37 lenders, there are a lot of lenders which they do not have connections with. This includes some of the biggest high street lenders around. So, if you use Loan Factory to find a loan or mortgage, you will not have access to these lenders. Thirty seven is a good amount of lenders, but there are hundreds of lenders out there that won’t be included in the search for your loan.
In short, Loan Factory is a pretty good company to use if you want to get excellent rates on a loan or mortgage. When you use Loan Factory, a lot of the stress of these applications is taken away from you, meaning that you can relax while the work is done for you.
For a small fee, this is definitely worth it, and that is why we would recommend using Loan Factory if you are considering taking out a loan.
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