Going directly to the bank or using a broker for your mortgage?
Knowing the differences between these approaches can help you avoid missing out on a great deal.
Welcome to the Homevest Digest, a mortgage newsletter for non-residents looking to buy properties in Spain.
In this month’s newsletter, we explore which is more beneficial when applying for a mortgage in Spain: going directly to the bank or using a broker.
Understanding the differences between these two approaches can help you avoid missing out on a good offer.
We spoke with Nora Aparicio from Mortgage in Spain.es to gain insights.
Read time: 4 minutes
Contacting the bank directly might seem straightforward, but having someone handle the process can be more advantageous, especially when unfamiliar with local regulations and the language.
Using a mortgage broker means fewer bank visits while receiving multiple offers from various lenders.
Banks only offer their products, while brokers compare different options and secure the best terms.
If you go directly to a bank, it can be harder for a broker to assist later since banks typically accept only one mortgage application per client. If you are already registered with a bank through another broker, some brokers won’t submit another application for you.
Working with an exclusive broker from the start might be a good solution if you’re looking for a smooth application process.
Broker vs bank services: insights from Nora Aparicio, Mortgage in Spain.es
Nora Aparicio is the CEO and Founder of Mortgage in Spain.es. After spending almost a decade in the banking industry, she leveraged her extensive knowledge to start her Spanish brokerage. Her background helps her negotiate more effectively with banks, securing better terms for her customers.
We asked Nora to explain the differences between applying for a mortgage in Spain directly through a bank versus using a broker.
How is working in a bank different from working as a mortgage broker?
Working in a bank and being a mortgage broker are fundamentally different roles.
At a bank, I was limited to offering only the bank’s mortgage products, restricting my ability to tailor solutions to individual client needs.
As a mortgage broker, I have access to numerous products from various lenders. This flexibility allows me to provide personalized solutions, ensuring my clients get the best possible terms and rates.
How does your experience working at a bank influence your approach to brokering mortgages?
My experience in the banking industry has given me a deep understanding of internal processes and lending policies. This background helps me anticipate potential issues and navigate the mortgage application process more efficiently.
Leveraging this insider knowledge, I can communicate and negotiate effectively with banks, ultimately securing better terms for my clients.
What services does a broker provide that banks usually don’t?
Customers who choose a mortgage broker can benefit from services that banks typically do not offer:
1. Personalized advice and mortgage recommendations based on each client’s financial situation
2. Access to multiple lenders, allowing for comparison and selection from a wide range of options
3. Comprehensive process management, from document collection and application submission to follow-up until the loan is closed
4. Continued support, available to customers throughout the entire process, even outside standard business hours
What are the main advantages of using a mortgage broker instead of contacting the bank directly?
You can save time and effort because brokers compare multiple offers and handle all the necessary paperwork for you. Unlike bank representatives, mortgage brokers offer more flexibility and availability to address questions and concerns.
Using a mortgage broker also means receiving expert and personalized guidance tailored to your specific needs, as well as access to better interest rates, terms, and conditions.
What makes Mortgage in Spain brokerage competitive in the international buyers market?
Mortgage in Spain.es stands out in the international buyers market due to our extensive experience and knowledge of the specific requirements for non-resident buyers. We offer:
1. Access to a broad range of mortgage products from multiple lenders, enabling us to compare options and secure the best terms and rates for our clients
2. Multilingual services in English, French, Dutch and Spanish
3. Personalized service based on each client’s financial situation
4. Comprehensive process management, handling all aspects of the mortgage application process
5. Knowledge of international fiscal regulations, facilitating the provision of necessary economic information to banks
6. Flexibility and availability to support our clients whenever they need it
7. Streamlined communication, acting as your single point of contact with various lenders.
If you had to give just one piece of advice to non-resident buyers, what would you say to help them make the most out of their mortgage application?
Work with a mortgage broker who specializes in the Spanish market and has experience with international clients.
This collaboration will give you access to a broader range of mortgage options, tailored support, and expert insights into local regulations and procedures. Such a partnership ensures a smoother and more successful mortgage application process.
What are the mortgage rates in Spain for non-residents?
Mortgage rates can vary depending on the type of property you buy, its value, and the size of your deposit.
Similarly, the terms you receive will be tailored to your specific situation, so always consider your unique circumstances when evaluating mortgage options.
As a starting point, the average interest rate in Spain dropped to 4.72% in May, down from 4.91% at the start of the year.
See how much you can afford before taking your mortgage process to the next level.
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Thanks for being here, and we’ll see you next month.
PS. If you found this valuable, here are other ways we can help:
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