Before submitting the application, consider whether your building project or the selected house also decides whether the bank will give an OK for the full financing. As a security, the bank does not accept the purchase price of the property, but a mortgage lending value, which it calculates according to objective criteria. In the case of repayment problems, the bank has the right to foreclosure. A lifelong dream and at the same time financial security for many consumers. The Car Finance Comparison Car Loan Interest Rates – For Interest Rate Comparison For Car Loans.
From whom is the cheapest real estate loan offered: broker or bank?
However, a real estate loan is often with fairly long terms, relatively high investment and time consuming. Despite the generally low interest rate, the buyer can quickly pay several thousand euros too much if he chooses the right real estate financier. In addition, the Real Estate Credit Regulation, which has been in force since 1 January 2016, makes it difficult to lend: Credit institutions now have to scrutinize the creditworthiness of their borrowers to ensure that the real estate loan is fully repayable.
The fact that credit institutions are now more cautious about lending can help to reject more real estate loans. Intermediaries with a large network of banking partners can assist in finding the right credit institution. In a study (issue 1/2016) Stiftung Warentest has calculated the best offers for the year 2015.
Brokers look after the client and check the various suppliers and goods.
He then submits to the client usually several financing offers, of which he selects one. The agent receives a commission from the provider chosen by the client. So, as the term intermediary implies, it stands between the client and the bank.
The study by Finztest made it clear that the application for a real estate loan agreement from an intermediary was cheaper than directly closing the same offer with the respective bank. According to the prevailing opinion, intermediaries mainly sell high-commission products to meet their own needs. For the consumer, therefore, the message is important: the commission does not have to be paid separately, it is already included in the interest.
However, by saving on settlement costs through intermediaries’ channel of distribution, credit institutions can offer their real estate loans there at a more favorable rate. Here are four pointers on how brokerage of real estate loans works and what benefits brokers have over other real estate financiers.
Unlike a bank, brokers are not obliged to sell only their own products. From a variety of service providers, often more than a hundred, you can choose the right type of real estate loan for you. A waiver of the client for advice is not required. Depending on which communication path he chooses, intermediaries can be on the Internet, by telephone or for an individual consultation.
Long-term cooperation + high number of real estate loans = favorable conditionsThe large number of real estate loans that brokers give to banks or other service providers gives them a higher negotiating power than individual private individuals. Both are the reason why intermediaries are in a position to negotiate attractive terms for real estate financing.
Perfect presentation: advice and preparation by the broker Intermediär accompanies the client from the first consultation on the application for a real estate loan to the payment processing. The broker then creates the documents professionally for the providers. Client and bank have so little effort. The bank often rewards this time savings with more favorable terms that the broker issues directly to the acquirer.
The broker usually submits several financing offers, which he filters out from his own platforms. Frequently, the client uses the effective interest rate as an essential comparison criterion. The other aspects are dependent on the different requirements of the client and can also influence the decision-making process. He has the say and chooses the right solution for him.
This ultimately explains why it is not the mediated offer with the best individual conditions but the one with the best commissions. Intermediaries will make you the offers of many major banks and can offer you favorable interest rates and conditions through their business relationship.