The role and operation of the real estate broker

If you plan to take out a mortgage to finance the construction of a house or the purchase of an existing property, being accompanied by a broker (also designated by “intermediary in banking operations and in payment services” or IOBSP ) is a way to save time and money.

The broker: a mortgage specialist

A mortgage broker acts as an intermediary between you and the financial organizations in the search for and the implementation of the optimal financing solution for your project.

Throughout the course, he gives you the benefit of his skills, generally acquired during a career in the financial sector (notably bancassurance), and gives you an informed external opinion.

Its strong points are numerous:

his network of relationships,

its technical and practical knowledge,

his ability to negotiate with targeted arguments

its ability to adapt to all types of requests.

Brokers fall into three categories:

1 broker networks,

2 independents,

3 actors on the Internet, which are generally mortgage comparison websites.

The role of the real estate broker

The broker supports you in the search for the financing solution suited to your real estate project and your financial situation. He cross-checks all the data he has to match supply and demand to the best of your interests. It can also find for you a loan insurance as covering as the group contract of the bank, while being less expensive. Eiendomsmegler | Sammenlign og Finn Beste Megler

Role of the real estate broker

Depending on his policy and your needs, a broker may confine himself to looking for the lowest rate. But it can also provide a wide range of services up to the final stage of making funds available in your bank account. In this case, he represents you with the banks and carries out the negotiations and other essential formalities for you.

How the real estate broker works

During your first contact with the broker (physical or filing your request online), he gets down to understanding your expectations and studying the realism and feasibility of your project. To do this, it is based on several elements:

• the nature and cost of the operation,

• the amount to borrow, as well as that of your personal contribution,

• the desired monthly payments and repayment period,

• your income,

• your debt ratio,

• etc.

Once you agree on the scope of his mission, the broker establishes a mandate that you sign and which gives him authorization to carry out the procedures on your behalf. The agreed fees also appear on this document, as do the banks with which it works.

professional broker

After an in-depth analysis of your file:

1: It defines your profile and performs a first filter of banks potentially interested in your profile and who could therefore grant you the best rate at this precise moment. To do this, he uses his knowledge of politics and how each works. Indeed, some seek to conquer first-time buyers over a given period, while others develop offers for the liberal professions ... Of course, it also refers to the grids transmitted by the banks which indicate the rates in force for each loan period and type of clientele.

2: It is also already checking whether you are entitled to public access to assistance such as the zero-rate loan.

3: After sorting the market, it submits to you at least three detailed offers, as required by law, explaining their respective advantages and disadvantages. He sticks to the council, but in no case does he make the final decision for you, you remain the only master in the matter.

4: After if one of the proposals grabs your attention, you have the option of continuing on your own. But if you decide to let the broker do it, he undertakes to put together a complete and quality file to present to his banking partners. It helps you to collect the pieces, or even to write some of them.

5: Now comes the stage of negotiation with the bank concerned, putting forward the arguments that will hit the bull's eye. In addition to the nominal rate, it can speak of insurance, change fees, loan transfer, modulation of maturities during the contract, prepayment penalties, etc.

After validation of the final loan offer and signature at the bank, all you have to do is go to the notary. When the money is available in your account, you transfer the broker's fees, if his mandate so provides. Indeed, with regard to his remuneration, three scenarios are possible:

• he is content to touch the commission of the bank;

• he charges you fees in addition to the commission;

• He charges fees proportional to the reduction he managed to obtain from the bank.

• In all cases, the law only authorizes him to claim his remuneration if your loan request is successful thanks to his intervention.