A mortgage broker takes care of finding the best rate for your loan for you. But what is a mortgage broker really for? Will you really make money on your mortgage by going through a broker? And most importantly, how much are the brokerage fees? Discover the principle of mortgage brokerage.
What does a mortgage broker do?
The broker acts as an intermediary between the banks and you. He questions the different banking establishments in order to find the best mortgage for you. The broker takes your personal project into account. Admittedly, the mortgage broker inquires with several banks in order to find the best loan conditions, but he works in priority with partner establishments. By doing business with banks with which he is used to working, he can benefit from higher commissions.
Going through an intermediary can be a good solution when you are not familiar with banking products. Especially since the banks have very fluctuating offers. It is difficult to find your way around when it comes to project financing. However, using a broker represents an additional cost.
Remuneration of the mortgage broker
Two scenarios can arise. In the first, you use the services of a broker. You are his client. He then charges you a brokerage fee. In the second case, his client is the bank. The broker charges him a commission passed on to the loan. Regardless of the situation considered, it does not change anything for the individual. He is the one who finances the brokerage work.
This remuneration includes the research time that the broker has saved you. However, that doesn’t mean it got you the best mortgage possible.
Brokerage fees can vary between 900 and 1500 euros, depending on the brokerage company. These are displayed amounts, but may be negotiable. The application fee is 300 euros. However, they are easily revisable. It’s up to you to negotiate to get the best price or even free.
be careful broker compensation. No payment must be made before obtaining the mortgage. If the credit selected does not correspond to what you have signed with the broker, do not pay him anything.
Online brokerage and solicitation of banks
The major mortgage brokerage networks are present online. It is even a sector with very strong competition. Several of them offer mortgage simulation forms. It is also possible to obtain very competitive loan offers free of charge, in particular on the sites Meilleurtaux.com and Prêtris.com. This is a good basis for getting a first idea. You will have all the important elements to start your own mortgage research. It turns out to be quite possible to obtain better loan conditions by going around the banks, without going through an intermediary. In any case, compete and consult several banking establishments before making your choice.
Namely, if you call on a broker after approaching a bank, it will no longer be able to deal with it. If you really intend to go through real estate brokerage, do not take any steps alone.
How to find a real estate broker in your area?
Now that you understand the role of a real estate broker and how he is paid, the question is how to find one. To start, you can ask for a recommendation to your friends, family members and co-workers if they know of brokers in your area. You should also search online reviews of local brokers. This will help you better understand the services of a real estate broker as well as their experience.
You can also consult a local real estate association or commission. These organizations usually have members who are experienced in the field and who can give you insight into which brokers are best suited for your needs. Additionally, these councils may have information on the licensing requirements that brokers must comply with in your area.
Finally, you should contact a few different real estate brokers online to determine which is best for you. Be sure to ask about their experience and training, as well as the services they offer that can help make your purchase or sale easier. Once you find the right broker, they will be able to guide you through the processfrom beginning to end.