Is this the right time for home loan repurchase?
Whether for a buyer or for a seller: it would be better to evaluate the actual price of the property compared to the current market. Appealing to the broker will save time and money. With the difficulty of the real estate market since the beginning of the crisis to this day, the financial institutions and banks are each making their proposals. How to know who will be the highest bidder, in terms of collateral and / or credit rate. which will be the most interesting. For these reasons and many more, it would be better to use a real estate broker.
Credit consolidation, loan redemption is an operation that aims to bring all the rest of the credit into one. So it will be easier to manage them well. A bank will then take over credit from other creditors. As a result, he then repays the other loans and consolidates them in a single loan. So, instead of pouring into multiple organizations multiple loans. The borrower uses the buy-back by group of credit. As a result, the borrower will have only one settlement to make, logical it has only one creditor.
The other benefit of making a credit redemption is also the reduction in loan payments. It is possible either because the repayment term will be lengthened or because the new rate will be less excessive. Certainly the rate of the previous loan or the average rate of the various loans will be lower and the duration could be extended. This reduction is therefore a good way to have an extra budget. Not to mention being able to live more easily or even saving for other projects. This process also makes it possible to reduce the debt ratio. This is all the more important, as banks take into account this debt ratio before granting a loan.
What is a broker?
The broker is a professional who practices the brokerage business. Through his approach, he serves as an intermediary between two parties during a financial transaction most of the time. The broker then intervenes on mortgage brokerage, consumer credit brokerage and loan pooling brokerage.
The real estate loan broker allows his client to benefit from financing whose principal means are specified by a search warrant. As an agent of his client, he becomes the representative of the principal to find the best credit proposal with the financing organizations and banks. The broker has the duty to let his client know his job and communicate the banks with whom he works. then the credit broker is well aware of the project and the aspirations of his client and then makes a balance between income and expenses. Thus, the broker knows that he will be paid by his principal only when the credit is granted. In addition, the broker may also be paid by the financing bank without having an impact on the client’s credit.
Why is the broker the right broker?
The broker is the right intermediary. For a real estate loan redemption because it can negotiate the credit rate that it is either fixed, revisable, revisable capped or mixed. He can also find tips on the prepayment penalties, the fees of banks and also the insurance borrower.
As an expert in its field, the credit broker will be the best adviser to easily find the best financing solution to a real estate project.
Credit Broker the linchpin of banks
He also helps to make a credit simulation by explaining the progress of the chosen loan thanks to his recommendations. It will be able to take care of both the necessary credit files and to start looking for financing. The broker is there to answer all the questions. The credit broker is thus able to conclude more quickly with the banks. Our credit broker also begins negotiations to give his client better terms. Whether in terms of rates or insurance conditions, depending on the means and nature of the client’s project. Thanks to his work, he presents many clients to banking institutions. This work rewards his efforts, on the one hand he can then get lower rates, and can even remove the penalties upon early repayment on the other hand. It’s all about trust and serious work.
How does it happen ?
To start the credit consolidation, the broker will realize several steps in place of his clientele. As an intermediary, he will assemble the file and deliver it as well. It informs itself by identifying the credit repurchase institutions likely to receive the file. Since he already works with them often, he will be able to obtain interesting conditions. He will contact these banks and compare their credit buyback proposal later.
The broker can present to his client the best proposals. Once the buy offers are in hand, it will be the crucial moment to make the right choice. In this respect, this is the reason why an offer can only be accepted after the legal period. This legal period of reflection is 14 days. Once the offer is accepted, the new bank will reimburse the remaining credits. The bank gets the specific amount to repay. Then by a writing game the account of the borrower will be credited, then immediately debited the amount of the new credit. The loans are therefore refunded, the new monthly payment is in place, the transaction is settled.