A mortgage loan is a long-term product not only for an apartment buyer but also for a bank. That is why banks select partners, that is, realtors, developers, insurers, with whom they have to work, as carefully as they assess the client’s solvency. If from the very beginning cooperation is well established, then, as a rule, all parties remain in the black, and most importantly, the client. Today we tried to figure out what the participants in the mortgage market, that is, banks, partner companies, and their clients, get from such a union.
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The price of risk
One of the most serious issues affecting mortgage conditions is a risk. It is from the point of view of risks that the bank always assesses customers and partners before starting to work with them, therefore each credit institution tries to form a pool of reliable and proven developers, realtors, insurers, etc. “Long-term cooperation is one of the foundations of stable work, and mortgages require a serious approach, and the choice of partners is an extremely important task,” says Tatyana Ushkova, Deputy Chairman of the Board of Absolute Bank. – At the same time, the work process should be convenient for everyone. For example, last year Absolut Bank simplified the accreditation procedure for developers – now it takes not two months, as before, but two weeks. At the same time, the quality of the assessment does not suffer, and we can start working together faster. “
The second plus of partnerships with other companies for the bank is the increase in the number of applications for mortgages. It’s simple: the wider the network of partners, the more clients the bank can offer its services. According to Tatyana Ushkova, since November last year, that is, after Absolute Bank began to actively expand the list of accredited developers, the number of loan applications increased by almost 25%. One more nuance: the partner, who has been working with the bank for a long time, has an excellent idea of the portrait of his potential client, therefore he recommends mortgage programs to those borrowers who are more likely to receive a positive decision on issuing a loan.
Simpler process – more effect
In the mortgage lending market, banks work with a wide range of partners – these are accredited developers, realtors, and real estate agencies, insurance companies, etc. “Of course, if cooperation were beneficial only to the bank, the partnership would not last long,” Tatyana Ushkova reasonably notes. So, what do its clients and partners get from working with a particular bank?
Firstly, the tandem of the bank and the developer gives an accelerated time frame for consideration of a loan application and a simplified process of filing documents: most banks more quickly analyze clients who are sent by a developer or realtor partner and soften the requirements for documents. “I will give an example from our practice – potential borrowers coming from partners can submit documents in the form of scans by e-mail,” Ushkova says. – In the event that the client receives approval and is ready to enter into a deal, he already provides the originals: a certificate of income, a passport, a copy of the workbook.
Another important factor is a streamlined lending process. According to market experts, a well-structured work is perfectly visible on the example of complex transactions, when there can be five, ten, or even more participants in the chain of real estate purchase and sale transactions. The specialists of partner companies know the specifics of working with this other organization, this makes it possible to avoid pitfalls, mistakes, and, ultimately, time-consuming transactions. For the client, by the way, this is also a clear plus.
Well, and finally, one of the main advantages of mortgage affiliate programs is that the more banks a company works with, the more choice it can offer its client.
Interest for “insiders”
Mortgage affiliate programs of banks would not be so interesting if they were beneficial to only two parties, without helping the client in any way. But the market has developed a practice in which it is the borrower who receives, perhaps, the most tangible profit from the joint work of the bank with friendly companies.
As we have already said, most banks consider applications from clients who have come through partner channels in a simplified manner, at the stage of making a decision to issue a loan; they are ready to analyze copies, not originals of documents. Another plus, which seriously makes life easier for the borrower, is the principle of “one window”: a person who decides to buy a new home can get all additional services through the bank, from advice on choosing a mortgage program to choose an apartment. If a home buyer has turned, for example, to a real estate agency, then specialists will help him choose a bank and a profitable mortgage program.