Soliciting a mortgage broker to help you get a property loan is the surest way to get the best deal from banking institutions. You can benefit from good guarantees, tailor-made conditions and a reduced interest rate. Let’s detail here the steps to take to build a financing request with a credit broker.
Step 1: Start the process with the brokerage agreement
The first administrative step is the signing of a brokerage agreement. By using a mortgage broker, you delegate your credit search to a professional. The Brokerage Agreement is the document that formalises your delegation and gives the broker the job of searching for a loan for you from their banking partners.
It is important to understand the role of the broker: they will work for you with this confirmed search mandate. The search service will be free and without financial commitment until you have signed the definitive loan offer. The broker will ask you to communicate which banks you have already contacted (if this is the case), so that they do not solicit them again. Once the brokerage agreement is signed, the mortgage broker’s work begins.
Step 2: Knowing your budget
After signing the brokerage agreement, there is a prerequisite before starting to pull together your case file. It’s about knowing your budget for the property purchase. For that, it is imperative to evaluate both your debt-to-income ratio and your borrowing capacity. In terms of your income, but also in terms of expenses and loans including on your current home, how much can you borrow? With the answer to this question, you can refine your budget targeting, whether it’s a home purchase or a rental investment. You will have in mind a maximum sum that you can allocate to your project.
The broker will evaluate your borrowing capacity considering your financial situation. They do not just apply a single mathematical rule. The assessment of your borrowing capacity varies according to your income, your age, but also your personal and professional situation.
Step 3: Present your best profile
In addition to determining the amount that you can borrow, the broker will help you build your case by presenting your profile with the best way possible. It is your responsibility to provide all the information needed to complete your file. Clarity of information will help the bank give you a quick response.
Your personal situation
Thus, you will be asked to provide requested documents for your personal profile: ID, marriage certificate or divorce decree, list of dependents, proof of address (EDF or France Telecom), housing tax and property tax statements.
Your financial position
You will be asked to provide your pay slips (the last three months) and the two most recent tax returns. Your bank statements for the last three months and the repayment schedules of any current loans will also be requested.
Step 4: Let the broker find the best proposal
The broker will engage in an accurate analysis of your situation, in order to both understand how you manage your finances and to build a complete file that will be submitted to their banking partners. It is not advisable to hide information; never lie. The broker’s research work is based on the truth and accuracy of your statements, in order to offer you a personalised credit proposal.
Step 5: Choose the best offer
In a few days, the broker will receive responses from their banking partners. They will then submit the most relevant offers to you. They will present you with the ones they deem best, in terms of rates, but also in terms of guarantees and levels of protection. The broker has an advisory role and is there to help you understand the different offers for you to choose with full knowledge of your options. It’s up to you to make the final choice.
Do you want to start looking for the best financing for your project with the support of a broker? Contact the Private Rate team. Thanks to a powerful network of partners and preferential conditions, we bring you all our know-how for your successful property transaction.