Is this a scam or am I missing something?

I reached out to a company that helps people get loans, and I signed an agreement where they take 10% of the loan amount. They told me they work with investors, so I thought they would lend the money. But instead, they filled out a loan application for me with a big lender.

Now, if I get approved and take the loan, I will owe this ‘broker’ over $50k, since the loan amount is in the mid 500k range. The lender is dealing with me directly, and there’s been no communication with the broker. The broker is not listed anywhere on the loan forms either.

The broker claims they have an ‘inside contact,’ but it all feels off. Plus, they keep calling me asking for updates. Should I be worried? Will they ever find out if I take the loan, since the lender says they don’t share my info with anyone? Or did I just fall for a scam?

This is a nonstop series of red flags. Please don’t go ahead with it.

Yeah, I agree with you. It feels wrong.

If you get approved, it sounds like you’ll just have to pay the broker what you agreed to. But, I also think the broker may never know if you get approved.

If brokers in your country need a license, you could report them to the agency that handles that. This doesn’t feel like a legit broker.

Thanks for the advice. I think I’ll look into other options for now.

I’m not sure if you’re being scammed, but you shouldn’t need a broker. They don’t do much except help with the application, which is easy to do yourself. I’m a commercial lender, just go to your bank. You already have an account there, which is more valuable than you might think.

Bring your financial documents, explain what you need the loan for, and you should be able to get approved. If you’re not fully creditworthy, a bank might still give you a loan with an SBA guarantee. The point is, brokers don’t add much value and take a big cut. Most legit lenders don’t want to deal with brokers.

Yep, definitely sounds like a scam.

So, you hired someone to help you get a loan and agreed to pay them 10%? Now you’re wondering if you need to pay them after you took out the loan with a different company?

It’s like asking a random person to show you a store, and then having them wait outside to collect 10% of your purchases. If the broker keeps bothering you, just tell them you didn’t get a loan and report them for harassment.

Also, why didn’t you just go to a regular bank for a loan?

Did you sign any kind of contract with this broker?

And why didn’t you go straight to the bank instead of dealing with brokers? You’ve learned a costly lesson here, but at least you’re not losing more money. Hope you’re good at whatever job you have, because it seems like you don’t know much about finance.

Since you’re already in touch with the lender, why don’t you ask them to cancel your application from the broker and submit a new one directly? That way, the broker doesn’t get involved at all.

This sounds fishy. Registered brokers usually take a smaller cut, like 5%, not 10%. Something’s off here.