Those who plan to buy a house or an apartment must most often take out a mortgage. But even if borrowing rates are relatively low, banks are increasingly cautious about lending money.
If you have a poor knowledge of banking products or in the event of a somewhat complicated file, it may be wise to call on a mortgage broker. Find out what this professional is for and the advantages of going through him. Everything you need to know before hiring a broker for a home loan.
Why should you hire a broker for a home loan?
You intend to buy a property (house, apartment, studio, etc.). To do this, do you need to take out a loan from a bank or financial institution? And you wonder if it makes sense to use a broker? In other words, what is the purpose of the mortgage broker?
First, know that the broker for a mortgage plays the role of intermediary between the banks and you. He finds the best loan for you by questioning the various banking establishments. For this, this professional takes into account your personal project.
The mortgage broker has a network of banking partners. Thus, instead of canvassing all the banks in order to benefit from the best borrowing conditions, the broker will work in priority with partner establishments. By doing business with banks with which he collaborates regularly, he benefits from higher commissions.
If you are unfamiliar with banking products, take a broker for a home loan represents a good solution. Indeed, going through an intermediary will save you precious time and you will most certainly get a better loan rate.
Today, banks offer very fluctuating offers and it is often difficult to navigate in terms of project financing. In this, using a mortgage broker is an effective solution. However, there are additional costs to consider.
How is the mortgage broker remunerated?
Two scenarios are possible. In the first, you are the client of a real estate broker. Therefore, this professional charges you brokerage fees.
In the second case, the bank is his client. So the broker charges him a commission, which is passed on to the loan.
But regardless of the current situation, it does not change anything for the individual who must finance the brokerage fees.
This remuneration takes into account the research time that the broker has saved you. The amount of the fees varies between 900 and 1500 euros, depending on the brokerage firm. The amounts must be displayed. However, they remain completely negotiable. As for the application fees, they amount to 300 euros. But they are also revisable. To obtain a reduction or even the elimination of application fees, it is up to you to negotiate.
advice : be vigilant about the remuneration of the mortgage broker. Do not give him money until you have obtained credit for the house or apartment. And if the loan selected by this professional does not correspond to what you signed with him, do not pay him anything.
Should you take a broker to get the best credit?
The broker saves you tedious steps. Indeed, when you are looking for financing for your real estate purchase project, you must prospect. Thus, this requires many telephone and physical appointments with bank advisers.
As a first step, it is advisable to talk to your current bank to see what it can offer you to keep you as a customer. Then, even if the proposal from your bank seems interesting to you, it is better to make an appointment with other banks to be able to compare the loan offers. In addition, all these formalities require time.
The mortgage broker will take care of this rather daunting step for you. Moreover, his remuneration takes into account the research time. This professional also has a network of partner banks and financial organizations. Thus, these establishments offer him offers that are inaccessible to private individuals. This facilitates his work and makes it possible to best satisfy his client’s request.
However, you should know that taking a broker for a home loan does not mean that you will obtain the best possible credit, with a very low borrowing rate. Moreover, if the broker’s proposal does not suit you, you are not obliged to take out the mortgage. In this case, the intermediary is not remunerated. You owe him nothing until the loan offer has been signed.
advice : if you plan to use a broker, be aware that it will not be able to deal with a bank already canvassed by you. Do not take any action when dealing with a broker.
Can you choose an online broker for your home loan?
First, it is essential to know that the major mortgage brokerage networks are present online. Moreover, it is a very competitive sector, which therefore requires a presence on the Internet. Several major networks even offer mortgage simulation forms for individuals. In addition, it allows you to get a first idea before canvassing the banks or soliciting a broker for your mortgage.
On the other hand, it is possible to obtain competitive loan offers for free, in particular on the sites Meilleurtaux.com and Prêtris.com. This represents an excellent basis before taking the first steps. You will then have all the essential elements to start your own research in terms of mortgage.
Is it mandatory to go through a broker for your mortgage?
Nothing obliges you to take a broker for a mortgage. Without going through an intermediary, you can absolutely go around the banks to obtain the best loan conditions.
It is then for you to compete so that you are offered an attractive loan offer, with a relatively low borrowing rate. Banking institutions are sensitive to several criteria in terms of borrower profile: the amount of your personal contribution, your professional situation (open-ended contract), your career development prospects, the way you manage your accounts, etc. Before your meetings, prepare your arguments in order to be as convincing as possible.
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