Anyone who wants to buy or build a home is usually dependent on a real estate loan
But which loan is the right one? With the help of a financial intermediary it is easier to find a suitable financial institution.
If bank clients hire an external financial intermediary to seek real estate loan offers from various banks, they will search for suitable funds in their pool of lenders. As a rule, this is done via a virtual platform, explains Jörg Sahr of the magazine “Finanztest” in Berlin. On the screen of the operator, a color is displayed next to each bank after the search. “Green means she does it,” explains Sahr. Yellow and red are getting tight.
Middlemen between the bank and the client
Financial intermediaries are middlemen between the bank and the client. The alternative to the intermediary is the direct walk to the house bank. But which way to real estate loan is the right one? Diversity is crucial for Max Herbst of the independent financial consultancy FMH in Frankfurt am Main: the borrower must obtain offers from the house bank and financial intermediaries and compare them.
If the agent only sees red, the way back to the house bank still remains. On the other hand, if the broker has the green light and even better offers than his own bank, the customer can try to negotiate with the bank. “It’s bad when I go to the market and say, ‘Who’s financing this thing for me? It’s all so great and nobody wants to finance it!'” Says Herbst. “The other side realizes that, and you should avoid that.
Going to the house bank can be helpful
In some cases, local banks or local banks are more willing to lend. Because they know a specific situation, a builder or buyer better estimate. The best example is the house in the Pampa. “In extremely rural areas, big banks based in the big city would not do that,” says Herbst. “But the small bank on the spot, knows the area, knows the thing, knows the value.” In such financing regional banks are often unbeatable. A financial intermediary is unlikely to find better conditions.
On the other hand: A house bank, with which one is already 15 or 20 years customer, sees itself not necessarily in the Zugzwang, gives Thomas Hentschel of the consumer center North Rhine-Westphalia to consider. “Then she says, ‘Okay, he’s happy with us, otherwise he’d have turned our back on us long ago, so we’ll give him a zero-fifteen offer.'” A foreign bank might smell a deal with a new client. “They say, ‘Then I have to fight.'”
Another advantage of the financial intermediary is the wide range of services. “He resorts to a pool of credit institutions, which he presents the financing of my property in a tender,” explains Hentschel. With such an offer, the borrower can then go again to the house bank. “And then she decides ‘Yes, I want’ or ‘No, I can not go there.'” However, this decision would not only be based on economic considerations. “That’s where emotional things come in.” Anyone who has been working with and trusting the same bank adviser for years may prefer to dig deeper than to suddenly negotiate with a stranger.
Do not be afraid to turn on a financial intermediary
Many consumers shy away from contacting a financial intermediary, according to Herbst. They feared that the commission would cost them more. “That’s not true,” says Herbst. Banks are grateful when the intermediary submits the completed loan application. This may even result in lower interest rates than in the case of a direct deal with the bank. “As a banker, I have no advisory service,” explains Herbst. “Thus, the broker gets better conditions, then puts his commission back on top and then at least as cheap as the banker.”
Unserious could be a financial intermediary, which requires a separate agency fee from clients, warns Sahr. That’s unusual because he gets his commission from the bank anyway. “And be careful if, in addition to the loan, he also wants to link the financing with an investment, that is, presses on additional business such as insurance or funds.” Financial intermediaries are no longer just in the online business. “Many brokerage companies have a nationwide branch network,” says Sahr. At least they would have a postal, mail and telephone service for their clients. The concern to come in mediated real estate loans only with computers instead of people in contact, was therefore unfounded.
Financial intermediaries can also obtain KfW loans
Those who want to build or refurbish energy-efficiently can apply for support from KfW-Förderbank. It grants low-interest loans for the part of the total real estate loan that finances the energy renovation. Even such coupled loans could take over financial intermediaries, says Thomas Hentschel of the consumer center North Rhine -Westphalia. Admittedly, the so-called house bank principle applies to these development loans. All that means is that the KfW funds will have to come from the bank, which also spends the remainder of the loan. “Many bank customers mistakenly believe that only the bank is referred to as a house bank and thus can spend KfW funds, with a customer has his checking account.