Navigating financing for the construction of your home is becoming a winding journey for future homeowners in 2023 and 2024. With the rise in interest rates and the difficulty in obtaining financial assistance, such as zero interest loans, the pitfalls seem to multiply on the path to the real estate dream. However, one figure emerges from this complex picture and offers a ray of light for aspiring builders: the real estate loan broker.
Armed with expertise, sharp strategies and in-depth market knowledge, she skillfully navigates through the twists and turns of financial options, finding solutions where obstacles seemed insurmountable.
This professional stands as a pillar, not only deciphering the financial maze, but also facilitating a tailor-made journey that embraces changing economic realities.
Recognizing the crucial importance of this expertise, Maisons SIC, house builder in the South West for over 50 years, teams up with dedicated brokers. The company thus ensures the strength of house construction projects of its customers, then firmly anchored despite the headwinds of the current economic climate.
Financing the construction of your house: what is the meeting like with a broker?
Located near the headquarters of Maisons SIC de Tonneins, the company Group' Finance Expertise d'Agen Boé offers brokerage services to clients throughout the South West, with agencies also in Casteljaloux, Marmande and Bordeaux.
This is where Séverine Lagardère works, an experienced broker who regularly collaborates with the Maisons SIC teams.
“We are like doctors, we must tell us everything, hide nothing from us.”
She explains to us how Maisons SIC clients come to her for financing the construction of their new home.
“First of all, Camille Simon, the Maisons SIC sales representative with whom I work, systematically suggests to her clients that they put me in touch with them. She sends me their contact details and I get in touch with these clients to find out about their personal situation and their project.
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The second stage happens when a completely free first meeting which will allow him to verify the feasibility of the project. Clients must then provide all their documents necessary for the analysis and creation of the file. “And there, we are like doctors, we have to tell us everything, hide nothing from us. »
Then, with the clients' documents and with the knowledge she has of the current banking context, she can, at the end of the meeting, tell customers where their borrowing capacity stands.
“I cannot comment on the possibility of an agreement because it is not my responsibility, it is the bank, of course, which has the final decision. But I can tell them what their real borrowing capacity is and also inform them of the possibility of carrying out their project now or if it is a little premature. »
Two scenarios then arise:
- Either the financing project for the construction of their house is feasible immediately and clients entrust him with finding their financing. And she accompanies them from the beginning to the end of the project.
- Either the project is premature and she strives to give all possible advice so that the file is prepared as best as possible to be presentable and subsequently granted.
=> Also read: Real estate loan for house construction: the 5 conditions of the banks
The 5 steps to financing the construction of your house in 2023
If the project is feasible and the clients call on the broker, there are then different stages:
- The phase of negotiation from banks. The broker returns to the client all the banking procedures that were made with the banks' proposals.
- When the proposal is accepted by the client, the broker accompanies him banking appointment.
- After this banking meeting she takes care of editing the loan offer, which she rereads.
- She takes care of release of funds.
- It leads the customer to the final deed at the notary, where she is present at his side.
Why invest in the services of a broker for financing the construction of your house?
Using the services of a broker has a cost, that’s for sure. But it also saves time and money.
Here are some of the various advantages of using a mortgage broker:
- Thanks to the conditions that they can negotiate (the rate, borrower insurance, all the different costs that we have in real estate financing, etc.), brokers allow clients to free up more borrowing capacity.
- Support in all stages of the project. The customer can thus detach himself from all administrative and banking procedures.
- Responsiveness in responding to customers personally and the speed in setting up their financing.
- Proximity. Here, Group' Finance Expertise is a local and nearby firm. It is possible for customers who wish to deal remotely but their strength lies above all in being close and physically present at all stages.
- Using a broker allows you to offer professionalism. With their knowledge and experience, they are able to tell clients so precisely why their project can move forward and succeed or not.
Obstacles to financing your home in 2023 and 2024: how can the broker help?
In 2023, new financial obstacles to financing the construction of individual homes will appear, largely linked to the increase in interest rates. A situation which has necessarily reduced the borrowing capacity of future owners, their financial envelope sometimes becoming insufficient to build their dream project.
Can brokers help overcome these obstacles to house construction financing?
“We are not magicians either, we cannot find interest rates from a few months ago. On the other hand, we endeavor to carry out simulations adapted to current rates; even to anticipate them; this makes it possible to verify that the client's project is indeed achievable at time T. We try to follow this trend in the evolution of rates and even anticipate it to be able to really project clients into their future but real project. We must not be inconsistent with what is happening. »
And for 2024?
“I will remain optimistic. Financing has become more difficult, that's for sure, but today, it is still possible to borrow. Brokers have even more of a role to play in 2024. Unfortunately we see that customers who come alone still face a lot of refusals. I think that if clients first contact a broker, they will immediately have the opportunity to know if their project is feasible. We often think, when we are alone, in relation to our own bank. But we, with our knowledge, think about banking and insurance in general. And it doesn't have the same impact. A file that has been refused on one side can be accepted on the other."