The profession of broker derives from the banking activity and in particular the mortgage. This professional serves as an intermediary between future borrowers and lenders. Brokerage remains a little known activity in France. With the advent of loan renegotiations and low rates, brokers have a bright future ahead of them. But what does the broker’s business consist of? And what are the advantages and disadvantages of using this professional?
The profession of real estate broker
To save time, borrowers are turning more and more to mortgage brokers. These professionals, often from the banking sector, specializing in finding competitive rates across all existing banking structures.
Time and money are saved by the client, even if the cost of the project is increased by the broker’s commission.
They can be salaried or independent.
Brokers also have agreements with the banks. The more customers they bring, the better the rates offered. The broker accompanies the client in the steps, until the signature of the loan and the notarial act.
Generally, the cost of remuneration for the service is around 1% of the amount borrowed. Some are even completely free for the customer, the latter charging this sum to the banks as intermediation fees.
Signing a mortgage with a broker: the benefits
More and more consumers want to make a mortgage to become an owner.
As part of a first acquisition, they often appreciate being accompanied by a professional guiding them in this purchase. The broker will then advise his clients and bring them various loan offers tracked from the lenders. As there is no need to take the steps himself, the customer will gain a significant amount of time.
Because of their important network of knowledge, brokers will not only save time but also money for the client. Some brokers have many files on the same bank, so they are more likely to provide you with a favorable rate.
The disadvantages of brokerage
The start of the process may have some disadvantages. Because of the many files it deals with, the broker may take quite a long time to initiate the concrete steps of research with banks. He will also have all the necessary documents to set up the loan but also learn about many questions, motivations, and desires of the client.
The choice of a broker must be done with reflection because once the contract is concluded it will be very difficult for you to retract. In case of change, your new broker will not have the right to question the lenders already contacted by the previous one. The fees are also a brake on the intervention of a broker.
The most interesting for the customer is to solicit banks themselves at first, then in case of dissatisfaction to turn to a broker.
He will be able to play his contacts and his preferential rates on the basis of proposals already obtained.