Real estate credit: why go through a broker?

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JUNE 18, 2019

Finding the most advantageous home mortgage when buying your future property can quickly become a long road fraught with pitfalls. Specialist in his field, the real estate broker is there to accompany you. What is the exact role of this intermediary?  What are the real benefits of using a real estate broker?   ? We take stock of this option more and more popular with future owners! 

Real Estate Broker: What is it for?

The real estate broker is an intermediary between you (the borrower) and the credit agency, usually a bank (the lender). You can call on him if you want to buy a property (for example a house or an apartment) and you need to make a loan to the bank to finance your purchase.

The real estate broker has two main objectives   : streamline the process of underwriting your loan and most importantly, find you the best offer in terms of mortgage.

For this, he will negotiate and optimize the contracts offered by the banks. In summary, he plays the role of facilitator when buying a property.

Save time in your real estate project

Buying a house or apartment is usually a long process that requires multiple steps. You must first find the property that you like or a land standard if you want to build. In order for you to access the property, you will need to choose a credit institution that agrees to make a home loan.

This step is often long and tedious . You have to spend long hours with the banks, chaining telephone appointments and physical meetings. Many documents will be requested. In some cases, a badly mounted financing file may be the cause of a total or temporary loan refusal.

By taking care of all these administrative procedures, the real estate broker will save you an inestimable time . He will set up your file with you and then will present it to the banks. It is therefore he who manages all the negotiations.

Saving on your loan

The second benefit of hiring a mortgage negotiator is economic. Without real knowledge of the mortgage market, you will certainly find it difficult to find you there. Borrowing rate, fixed or variable rate, repayment terms, general conditions ... will you be able to compare the different offers?   ? Also be aware that it can be complicated for a client to negotiate directly with a bank for a loan. Do you dare to ask for a lower rate   ? Can you defend the weak points of your file against a bank advisor?   ? Otherwise, going through a broker is the best solution in your case.

The real estate broker has the advantage of having an extensive professional network . He works with many lending institutions with whom he has built strong relationships over time. This allows him to benefit from discounts and offers very interesting in terms of the amount of credits. He knows their trade policies, their offers and the type of customers targeted.

Depending on your file (resources and profile), it will quickly select the most beneficial organization that will allow you to make great savings!  He may also advise the financial institution whose services offer meets your requirements.

Accompany the buyer from end to end

More than just a negotiator, the real estate broker will play the role of coach . Throughout your financing project, it will guide you to the financing methods adapted to your situation.

Exit incomprehension of real estate and banking jargon   ! The real estate broker will become your sole contact and you will be able to ask him all your questions regarding real estate loans. Thanks to its solid skills, particularly in terms of taxation, it will allow you for example to create an optimized loan setup. Your file will be much more likely to be accepted by the bank.

Beyond saving you time and money, he will bring you advice and expertise.

Using a real estate broker can be a great solution if you have little time for your project or are looking for the best rate for your credit.

There are many specialists in mortgage brokerage in Luxembourg. Do not hesitate to contact several. You will find contact details of real estate brokers in Luxembourg on our internet portal.

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