Mortgage broker

Every young family would like to live in their own house and we aren’t an exception. After the delivery of our second child our old house became small and we decided to buy a new house and started thinking about getting a mortgage.

Buying a house is a very difficult thing as it may seem at first. But in fact, nothing difficult if you know what to do and how to do or if you know where to find the information. We knew where we could get the information - on www.fizber.com. Quite useful site, convenient structure, valuable options like “City Profile” ( http://www.fizber.com/sale-by-owner-home-services/city-profiles.html), “Drive Score” ( http://drivescore.fizber.com/). But the most interesting for me was the page about various mortgage loans (http://www.fizber.com/sale-by-owner-home-services/mortgages.htm).

We also found a very pretty house for us, near Denver. The place is excellent, convenient location. We could compare several houses (outside and inside) and chose the best one. By the way, the database on this site is enormous and, I’m sure, everyone will be able to find something for their money. 

All components of process of purchase or sale of the real estate in the United States pass at direct participation of intermediaries - representatives of the seller and the buyer. Such agents here can be named brokers. The broker in the USA can become any citizen who has reached 18-years age, completely heard special training course and passed examination in the central commission of staff. The candidate on reception of such license should not have the criminal past and is obliged to get written references of not less than three any citizens with good reputation.
After passing an examination and reception of the license it is possible to start to work on one of the companies after sale of the real estate. To open own business, it is necessary to work actively not less than two years as the hired expert in any of the firms, an engaged real estate, to hear to one more special rate and to pass one more examination.
The broker of the seller during the first meeting concludes with the client the contract on sale of the real estate, more often - the Exclusive Right to sell contract. During its validity only this agent has the right to sell the object of the real estate stipulated in the document and to receive corresponding commission fee.
Other kind of the contract which the broker and the seller of the real estate can conclude is the Exclusive Agency contract. In this case the seller is not obliged to pay commission fee to the broker if he without the help of the agent, finds the buyer.
One more kind of the contract is the open contract. The seller concludes it with several brokers simultaneously, commission fee are received by those from them who will sell object. Such contracts are less popular, as according to existing rules do not allow each broker to place the information on sale in a uniform computer database, so-called Multiple Listing Service (MLS).
The broker of the buyer also concludes the special contract with the client. In it stipulate all wishes to buy habitation: city or cities in which will carry out search, a kind of habitation (the separate house, an apartment, a site of the ground under building), time of the contract validity, and also percent of commission fee.
In the USA at a legislative level the following requirement is fixed: if during validity of the contract between the buyer and the broker the buyer will buy particularly stipulated kind of the real estate in particularly stipulated city, but through other broker it will be obliged to pay all commission fee to the former broker (with which at it the operating contract) is signed. Usually broker of the buyer tries to receive commission fee at the seller as they are already incorporated in an estimated project cost of the real estate. In this case it cannot receive them again from the client-buyer. If the seller refuses to give out to it commission fee, the buyer is obliged to pay to the broker originally stipulated percent.

Between 30 and 50 per cent of the mortgage credits granted in Spain are carried out across the financial brokers or personal advisers who intercoms up between the banks and the final clients, according to bank sources.
The same sources point out that this form - that in the USA and in the United Kingdom are located between 80 and 90 per cent of the mortgages-, is favored by the increasing tendency of the banks to outsource the expansion of mortgages across financial intermediaries.
As pointed out director general of the Agency Negotiator of Bank Products, Luis Javaloyes the outsourcing of the mortgages is a consequence of the increasing rooting and knowledge of the public of the financial brokers that put within reach of the consumer a completely personalized service.
Javaloyes emphasized the saving that supposes for the financial entities the elimination of the costs of transformation and of clients’ reception, since these fall on the financial realtors that, also, obtain for the banks a profile of client made faithful by a product in the long term.
The director general of the Agency Negotiator of Bank products, he claimed a regulation of the sector ‘to eliminate financial refreshment stalls and to guarantee the transparence in the expansion of mortgage products, the quality of the service, and the defense of the consumer’. He underlined also the ‘change of tendency with regard to the analysis of the risk on the part of the banks’, that have happened of considering as situation of risk that 35% of the income should destine to the payment of the mortgage, to raise this percentage to 50%, at the time that they have happened to grant from 80 per cent of the value of appraisal of the housing to 100 for hundred, and even more to cover the expenses of management and taxes.
The mortgage debt of the families has exceeded for the first time the half trillion of euros, with a growth of 24 per cent as compared with last year. The familiar debts and the upward tendency of the types of interest have propitiated in the last times the appearance of new bank products as the reunification and the debt refinancing with that the families try to reduce their monthly payments.

Now, in the opinion of professionals, services of mortgage brokers still have not received a wide circulation in Russia. They are necessary for the market, but require advertising. While the population still not so well understands, what advantage it cooperation with mortgage brokers can bring.
However, already today all leading players in the capital market of the real estate pay much attention to this service. For example, according to the executive head of a department of mortgage crediting of Joint-Stock Company “Corporation MIAN” Sergey Mahotkin, the department which prosecutes all subjects directly connected with mortgage crediting of private persons is created in Corporation. “Employees of department in the majority have financial education and an operational experience in the financial organizations, accordingly can render the qualified help on all questions connected with a choice and reception of the credit, - emphasizes Mahotkin. - After a meeting with the client, the employee of a mortgage department selects one or several mortgage programs and gives the list of documents necessary for reception of the credit in given bank”.
In case of the positive decision of bank “the mortgage Certificate” which guarantees reception of the certain sum under purchase of the real estate on conditions of the chosen program stands out to the client. The given certificate is valid at least 90 days for which the client can pick up to itself the real estate as from a database of Corporation MIAN, and any other company. It is necessary to note, that Corporation MIAN not oblige the client to use the companies in selection of an apartment, and “the mortgage certificate” is supported by the letter of bank and it can be accepted in any realtor companies. Cost of services of Corporation MIAN on reception of “the mortgage certificate” is fixed and makes $500. At purchase of a country cottage to a standard set of services approval of the real estate by a creditor bank is added. Compensation of Corporation MIAN in this case makes $1000. If the bank refuses owing to, not dependent on the client, all sum paid under the contract, comes back to the client.
“At that variety of programs which exist today in the mortgage market, such expert as the mortgage broker is simply necessary since it is very complex to the borrower who is not having special knowledge and experience to estimate what program is the best for him, - speaks Elena Husnulina - Our agency, by the way, renders this service to potential borrowers free of charge”.
Nevertheless the executive secretary of Advisory council of the Commission of Council of Federation of the Russian Federation on legislative maintenance of formation of the market of accessible habitation Andrey Krutov has named lack of proper regulation of mutual relations between participants (borrower, bank, the estimated and insurance companies, realtor, notaries, tax specialists of the market) as one of the basic problems of the mortgage today. “Strangely enough, but their interests not always coincide, - the expert has noted - And all costs is born by the borrower for whom additional charges under the mortgage transaction can make 8% of the apartment cost”.

The work of each broker could be divided into several stages.
Stage 1 is the primary consultation at office.
At this stage, owing to mortgage brokers, the client receives the information about:
•    conditions of crediting,
•    preliminary calculation of the size of credit,
•    a real estate price level in the market,
•    the list of necessary documents,
•    charges under the mortgage transaction,
•    the order of the mortgage transaction carrying out,
•    the basic conditions of the credit contract and the mortgage.
Stage 2 includes gathering of necessary documents, selection of premises and gathering of documents on it, an estimation of premises as subject of the mortgage.
At the given stage the mortgage broker cooperates with the client (receiving from him a necessary documents package) and the realtor (on selection of premises, gathering of a documents package) and also, with the estimated company (on preparation of the report on an estimation of a subject of the mortgage). After documents are presented, mortgage brokers check them on conformity to requirements of Standards and prepare for the report about underwriting of the borrower and premises. At presence of a full documents package credit case of the potential borrower is formed and final settlement of the mortgage credit and terms of crediting is made.
Stage 3 is repeated underwriting (check of credit).
At the given stage the mortgage broker checks credit case on conformity to Standards, directs the report about underwriting for reception of the conclusion about an opportunity of carrying out of the mortgage transaction.
Stage 4 includes preparation of the transaction.
At the given stage in cooperation with bank, insurance company and realtor the mortgage broker prepares documents for the transaction - the credit contract and the mortgage, the purchase and sale contract, the contract of complex insurance (the borrower and habitation).
Stage 5 is carrying out of the transaction.
The transaction is spent at office of the mortgage broker where documents subscribe and are made mutual exchanges. At this stage occurs:
•    signing of the credit contract, the purchase and sale contract, mortgage,
•    signing of contracts on opening of the account and financial documents,
•    reception of the credit,
•    handling accounts between the parties.
Proceeds of credit are pawned in a bank cell (or special bank accounts for transfer of proceeds of credit open).
Stage 6 includes transfer of documents on registration.
Stage 7 is reception of documents from registration.
Stage 8 is the final settlement with the seller of premises.

So, let’s start…
In the countries, where the mortgage functions long enough, mortgage brokers became the usual phenomenon. But in the countries of former USSR this profession is new and the majority of population doesn’t know about such specialists.
So, mortgage brokers are specialized firms or individual businessmen which render services of financial advisers under mortgage credits.
Those who already took the mortgage credit, imagine what huge volume of work it is necessary to do to receive it.
Firstly, it is necessary to choose bank then to choose a variant of mortgage crediting, from offered by bank and suitable personally to you. Here it is necessary to be guided in tens questions, such as, in what currency it is more favorable to take the credit, how to confirm the income, it is necessary to give what documents for reception of the credit and how correctly to fill them and set of other questions.
Secondly, it is necessary to find object of the real estate, on which bank to agree to give the credit.
Thirdly after you have chosen concrete bank and a specific proposal under the credit it is necessary to collect the documents demanded by bank. Their list occasionally consists of several tens.
Mortgage brokers will help borrowers with realization of all above listed. Mortgage brokers do not take and do not give out credits, their business is professional consultation of clients concerning mortgage crediting, the help in a choice of the mortgage program and support of clients at the conclusion of the contract with bank.
First of all, they will calculate the credit program most favorable to you and will help to be defined with bank. Further, there comes a stage of gathering of documents, and they are mortgage brokers as incur. They will help to issue correctly all necessary papers, to eliminate possible problems at the conclusion of the contract with bank. When the borrower tries to compile all documents by himself is loss of huge quantity of time which costs very expensively in the modern world.
Except for services on financial consultation and compiling of documents, some brokers offer search of objects of the real estate suitable for you, legal consultation and the solutions of other questions connected with purchase of the real estate.
After the contract with bank is concluded, the mortgage credit is taken, the apartment is got, it is possible to continue consultations of the mortgage broker on various questions, for example in a complex situation at short-term financial difficulties, at refinancing and to other questions connected with the mortgage.