Construction financing through intermediaries or local banks

I think I have mentioned this several times already....

but I am happy to mention it again:

do banks have different conditions?
YES, they do, not all, but most!

Why?
let's take an example, a savings bank:
how does mediator support work there:
they have an office in an office building (not a glass palace like a branch!) what costs more here in maintenance?
how does it affect, where is it added?

in mediator support, each case is processed one after the other, i.e. if the current processing time is 4 days = the employees work continuously, without idle time...

how does it work in the branch? a customer appointment, then idle time (costs money, but brings none!), there is a completely different workload for the employees, so how does that affect the conditions?


I have to say, currently they have raised the branch conditions and adjusted them closer to the portal conditions.
1-2 years ago, the branch was sometimes 0.30-0.40% more expensive than via mediator!

WHY was that:
because they know, the mediator then sees all banks, if they want to do business via mediator, they have to offer corresponding conditions. So they remain competitive.


and now my question:
would you prefer to save €5,000 in interest, and the mediator receives €5,000 commission, or pay €5,000 more interest if you do it via the branch, and the mediator gets nothing (he also had no work ;))

10-20 years ago hardly anyone used mediators, everyone went to their house bank and then closed. Done.

why are the numbers with the branch declining? and numbers via mediator have been rising strongly for years?

how about:
- more transparency
- more comparison
- and in the end much interest savings

and thus back to

why do you want to go to the branch again? how likely is it that the conditions will be better via the branch?
(my tip: 90% probability that it will be more expensive (for the above reasons), 5% that it remains the same (this makes no sense for you, so I would do it via mediator)... and 5% that it will be cheaper (that would be the only argument not to do it via mediator))

sorry for spamming the forum like this... but maybe there are interesting reasons

so why I DO NOT get by with 4-8h for a case:

I always compare it to "monkeys sitting at the PC who actually could do it" BUT then don’t, and why not?

a monkey could type in the numbers (purchase price €500,000, equity €50,000, financing €450,000, then repayment, fixed interest period, income etc.)
and then the calculator spits out the banks
and it says Bank A with 1.55% cheapest!
Customer says: great, I'll take it.
Monkey says: gladly
2 weeks later comes the rejection!!!!!!!!

what happened?
like monkeys often do, it didn’t think it through... what maybe a “reasonable broker” would have done.

so a brief insight into my work:
first, I always do an appraisal of the property to get a feeling for the value/price.

why is that? Anyone can tell themselves, 95% of properties are currently sold FAR above value... maybe under 5% get it at value or even below.

what happened with the monkey?
he asked for €450,000 financing at a bank that only finances the maximum own loan-to-value. The bank rated it at €400,000, so max €400,000 is financeable

but that is only part of the work I do.

I also like to build constructs where the customer has the same monthly burden constantly for 30 years, and after 30 years it's paid off.
and it’s not always the cheapest option to have 30 years fixed interest full amortization (that would only be the simplest...)

so, now it’s weekend, and you should enjoy it ;)

now those who are employed full-time during the week can let off steam in the forum and invest their free time here (apparently I do it too much...)

even more spam.....

no, just kidding.


"Can I, after receiving an offer from the broker, still have a direct consultation with the same offered bank, or do I kick out the broker and his offer by doing so?"

here maybe a tip for you:
I don’t know which bank it is, but some really are like that!

if the broker hasn’t submitted the financing to the bank yet, and now you go there, and for example they offer you conditions 0.30% higher.
You show them the offer, but they stick to the 0.30% higher conditions.

then you go back to the broker and say to him: okay, I accept the offer.
he books it with the bank, submits the documents, and then a few days later comes a rejection, with the note: the customer was already at a consultation a few days earlier, and only this offer applies, so +0.30% and without broker

what does the broker think of you?
and what do you think when something like that happens?

since I don’t know which bank it is, but the possibility for such a thing exists exactly like that.

something to think about for the weekend.


PS. since interest rates are currently rising faster than processing can take place, banks are currently rejecting faster, even in borderline cases that they used to approve before. Better no deal than a deal with too small a margin, is the current motto of the banks.
(currently I’m experiencing that banks also come with "counter offers" and say: the house is worth X EUR less, we now add 0.20% on top, and either the customer accepts it or not; experienced this week... and this has NEVER happened before... I have exchanged here with others in the forum (one got a 0.10% surcharge)

but such banks then go on my red list, meaning the customer gets the note:
yes, the interest rate is cheaper here than at bank B, but at bank B it is certain, i.e. if there is a commitment, the rate applies, at the other bank, which currently seems cheaper, there can be an adjustment and the customer then has to decide, security, or possibly cheaper, or not.

Apparently, some trigger points were found here. Basically, I think it’s way too much whining. Well, you can complain that a customer then goes to the bank, but so what? That’s exactly the business, dust yourself off and carry on. The idea of a deposit is nonsense. You’re welcome to try that, then everyone will go to the bank or another broker and you’ll have even more time to come up with schemes.

Thank you very much for your explanations. I can’t understand a lot of your complaints/whining. Home financing is lucrative, the commissions are good, the market is competitive, and the last few years have been pretty fat, or would you like to claim otherwise? Everyone is free to decide whether he/she wants to work in this business or not. To make such a fuss over such a question, I don’t get it. A well-prepared client won’t cost you 20 or 40 hours of work, at most a day in total. If you take on unprepared and disorganized cases, that’s your decision. I think it’s good when someone gets stuck in and moves a lot. With assistants, like among others my finn or similar (u know, already used by many banks), you save a lot of time.

Long story short... I would prefer to just briefly clarify here in a factual way (which has already been done at length) that the approach of then going to the bank is uncool for the broker. Period.

I work in the healthcare sector. What an intermediary pockets as a commission from a contract is what my colleagues and I earn in at least more than a month. Unfortunately, we need thorough, multi-year training, the intermediary does not. I’m laughing my head off at the whining. I would never go to this intermediary again in my life. Help, lost touch with reality and then publicly whining while at the same time wanting to acquire new customers from the same public in order to cash in again on a commission from a contract whose amount in other professions can only be earned with months of work.

then I guess enough has been said here, now we could return to the topic of why we are here in the "house construction forum." but feel free to add another jab...


by the way, I have also had many years of training... I also studied, and continue to further educate myself. and no, my boss does not pay for this further education, I pay for it myself. if here everyone already says they are underpaid, even though their training took much longer! so you are already way off, , I don’t believe my training was shorter than yours. (here’s another note: if it is that easy, everyone is welcome to do it... and then after one year we can talk again. by the way, everyone can become self-employed, be independent, and earn a lot of money (the top argument from everyone... when you hear about self-employed/freelancers) but that probably earns more than 50% of the self-employed, and doesn’t have the existential fears that many do, that tends to be overlooked)


why did I bring up this discussion here? it was actually about human character, whether one should use a service but in the end not honor it! it’s the same as when I go to a specialty store and get advice from the expert, but then order online because it’s €10 cheaper.

here again is the post that started this discussion, so everyone can read it again who might have forgotten: "Can I, after receiving an offer from the broker, still have a direct consultation with the same bank offered or am I kicking the broker and his offer out?"


and I believe I have the right to share my opinion here as well. because I don’t want to target brokers for construction financing (we are probably at this topic with house construction, so broker fits here) but I want to relate it more to society in general, because how many of you here do something like this? "Take a service from someone, but the payment (where you buy it) goes to someone else?"


so before anyone writes anything else here on this topic, feel free to reflect and consider whether you have already done such a thing.

and actually my job here was also to give "assistance," tips... but with the last comments it is becoming clear that this is unwanted here...

I’m supposed to rather work off my cases in 4-8 hours, earning €5,000-10,000 per case, because all brokers do it that way... *irony off*