Updated on January 5th, 2023
A loan consulting agreement sets forth the terms of how a consultant will work with their client to determine the right loan option for their situation. Before the professional relationship is initiated, the document will ensure both parties agree to the payment terms, the services to be rendered, and each side’s responsibilities. Drafting an agreement is an important measure in reducing legal liabilities and ensuring a successful working relationship.
Loan consultants work with clients seeking to acquire a loan, providing them with information on the available options and identifying the best solution for their needs. Loan consultants do not themselves provide clients loans; instead, they assess their client’s financial situation and objectives and share their insight.
Loan consultants are responsible for reviewing loan applications, presenting mortgage or loan options, and advising clients. Their job is to inform clients of each option’s details and risk factors, as well as determine the appropriate option for their circumstance. In some cases, consultants may also negotiate arrangements for overdue loan payments.
Loan consultant agreements serve as a record of the working relationship’s details and provide a go-to source for settling agreement disputes. Completing the document before the relationship begins also ensures each party has a chance to review the terms and make sure there is no confusion as to the required payment, the expected services, and the start and end dates.