You don't have the means to finance the purchase of a home? Home loans are available to anyone with a good credit rating. Nevertheless, the banking conditions differ from one organization to another? What to do then to find the lowest rate?
The broker: an expert in real estate credit?
The real estate broker collaborates with several credit organizations. He acts as an intermediary between the borrower and the bank. Being an independent worker, he acts on behalf of his client. His mission is to accompany the client in the search for a real estate credit in accordance with his profile. He will also help him to compile the financing file that he will then present to the various banking institutions.
In France, real estate brokers can be classified into three categories: network brokers, online real estate brokers and independent brokers. They offer the same services. However, the cost of the service differs from one broker to another. When paid by the client, he receives brokerage fees corresponding to the assistance in obtaining the best real estate credit. But there are also brokers who offer their services free of charge. In return, they receive a commission resulting from an agreement between them and the bank.
Be careful! The broker cannot demand an advance or payment before the loan is signed.
What are the advantages of hiring a broker?
There are undeniable advantages to using a brokerage service. This is why this option is seducing more and more candidates for real estate purchases. Indeed, he is not only an intermediary between the client and the bank. He also plays the role of advisor in order to optimize the chances of obtaining the most attractive rate. His objective? To offer you offers that correspond to your needs. Obviously, thanks to his expertise and pre-negotiated agreements, he is able to help you find more favourable conditions: a very low rate, more affordable insurance, almost zero administration fees, etc.
If you don't have time to go around the banks, the credit broker is there to take over and guide you towards realistic solutions. With a large network, he can quickly put the banks in competition with each other. This will save you a lot of time. Finally, he will make sure that the file is fine-tuned before presenting it to the bank. In short, with a broker, the risk of rejection is reduced.
How to choose the right person to talk to?
The first criterion to check is the approval. To obtain it, he must meet certain requirements: a level 1 diploma in Intermediary in Banking Operations and Payment Solutions (IOBSP) and registration with the ORIAS or Organisme pour le Registre des Intermédiaires en Assurance (Organisation for the Register of Insurance Intermediaries). He must therefore hold a number which must appear on all documents issued.
A serious loan broker must also be transparent. To do this, from the outset, he must inform you of the cost of the service. Therefore, before starting the process, he must establish a mandate. In addition, it is better to entrust your project to a real estate loan broker who has a good network. This is a guarantee of efficiency. The mandate must also mention the fees of your contact person, the list of partner banking institutions with their contact details, etc.
Finally, if you opt for an online broker, the support will be 100% dematerialized, without physical contact. You will therefore not have to travel. On the other hand, if human contact is essential for you, choose a physical broker.