What is mortgage brokerage?

The concept of mortgage brokerage is very little known to the common people. Some carry out this activity, for different reasons: real estate buying and selling business, fulfilling a dream, investing to obtain more income. But all of them, need advice and guidance from an intermediary support, to make things lighter.

For this, there is the mortgage broker whose function is to conduct the business with the banks. Without having done a thorough analysis of the market and property to find the best benefits for the buyer . Additional, and very important, it is related to the function of intermediating when there is a conflict between the parties.

It is known how uncomfortable it is to apply for a mortgage loan, since most of the businesses in home buying are done by this means. And that is when the figure of the mortgage broker enters to make the activities simpler and faster.

Brokerage Considerations

Brokerage Considerations

  • Appropriate study of the client profile according to their economic situation.
  • The mortgage broker always maintains direct communication with the bank, to solve problems.
  • When the activity is a mortgage application, the intermediary executes the entire process. The client only shows up to sign the mortgage.
  • The mortgage broker must be an expert and have legal knowledge. Therefore, it eliminates the barriers between the user and the banking entity regarding legal and financial issues.
  • It is a means of conflict resolution , between those involved in two conflict interests.

On this occasion, the procedure for completing a loan application is mentioned. Supported by the mortgage broker:

Procedure applied by mortgage intermediation

Procedure applied by mortgage intermediation

After choosing the home by the buyer, the intermediary proceeds to make the mortgage application with the bank. For this, you execute it in three steps:

Analysis

At this initial point, the client’s financial information is collected to perform a thorough and detailed analysis of the mortgage application. The purpose is to obtain conclusions about the viability by borrowing capacity. It is communicated to the client, and if possible continue with the next step.

Request to banks and proposals received

Request to banks and proposals received

At this point in the process, it is presented to as many banks as possible. In order to negotiate all the proposed conditions and select which one is the best. Together with the client, the decision is made to choose in which entity the mortgage loan is requested. If there are doubts from the client, the mortgage broker must solve them.

Formalization

It is the final step, where you get the mortgage signature. It is essential that this process be carried out through the intermediation professional. As the client obtains better benefits and an adequate relationship with the bank through many years.

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