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- Its function is to advise the individual to obtain the best financing.
- The most frequent case in which the services of a mortgage broker is sought is in the reunification of loans.
- Law 2/2009, of March 31, regulates the services offered by these financial intermediaries with legality.
Mortgage brokers are financial intermediaries whose function is to advise individuals to obtain the best financing.
If we search on our own, we probably do not know how to negotiate with the bank. These are companies or professionals who know the mortgage market, the product offer, and the different credit institutions very well. In this way, they offer their services, above all, to those people who are looking for a very specific type of financing.
If we look for a bank on our own that offers us a very specific type of mortgage loan, it is very likely that we will take a long time due to ignorance and that we do not know how to negotiate well with the bank.
Reunification of loans
So it is usually more optimal to hire the services of PurplePayday to find the best loans according to our profile and needs and to expedite the process.
Its function is to offer a minimum of 3 offers that meet the needs The cases in which it is more frequent to go to a broker is in the reunification of loans since few banks offer it and are little known. Therefore, the best solution is to go to a broker to find the best financing.
Its function is to offer a minimum of three binding offers that meet the financing needs of your client and inform about possible doubts about the contract, legal and economic issues.
We can choose between four types of a broker, whose remuneration will vary depending on the relationship you have with credit institutions:
- Exclusive banking agent.
- Real estate and other providers of goods.
- Multi-agent or linked financial intermediary.
- Independent financial intermediary.
A law for ‘brokers’
The distrust of the users when contracting the services of the brokers motivated the Government to create Law 2/2009, of March 31, to regulate the services offered by financial intermediaries and thus legalize those who comply with the regulations and create a link of reliability between user and intermediary. Chapter III of Law 2/2009 talks about intermediation activity.
Article 19 (of Commercial Communications and Advertising) states that “the advertisements and offers displayed to the public must transparently inform about the interest and the cost of the loan”. Equally, “companies must explicitly indicate their activity: intermediation in the granting of loans or credits”.
In addition, ” all the expenses related to the grouping of loans to the client must be reported.” No reference can be made to the reduction of the fee without clarifying the pending capital increase and the new term.
Article 20 (of information prior to the contract) states that “intermediaries must inform with a minimum of 15 days to the conclusion of the intermediation contract on the company itself, on the intermediation service offered and on the intermediation contract.
In addition, it is said that “the information must be binding and must be in writing, if a requirement is breached, the contract may be invalidated”.
Article 21 (of the Contract) states that “the contracts must be in writing or any durable support that allows their constancy.” The client “can resign in the 14 days following the execution of the contract without being penalized and without giving explanations”.
Finally, Article 22 (of Additional Obligations in the intermediation activity) informs that “the intermediaries that work for one or more banks, will not charge their clients “. In addition, “they can only receive the collections from customers when the amount of the fees has been agreed through paper or other durable support.
Finally, “intermediaries must choose, necessarily, the products that best suit the client among all, and they must offer a minimum of three binding offers, advising on legal and economic conditions.”
We only pay if we are satisfied
In summary, we must know that brokers must set a price and that we must give our approval. Once the price is set, the company must look for three binding offers, as a minimum, which must be the best ones that adapt to the needs of the client of the entire market. Once we accept the financing that they have sought us, we will have to pay the fees to the company.
Therefore, we know that if we hire your services we will only make the payment if we are satisfied and that the broker will really look for the best financing for us so that we save time and avoid accepting an operation that is not the best for the US.