Calculate the amount to borrow
First of all, you must calculate the amount to borrow. To do this, you must take into account the interest rate of your credit, your debt capacity and the financial conditions required by your project.
OUR ADVICE: In order not to waste your time, we recommend that you carry out this step before searching for properties.
Find the right interest rate and the right mortgage term
In addition to the cost of the property to buy, the amount to borrow depends on the interest rate at the time you apply for credit and the term of the credit. These two elements determine the cost of your mortgage. This will vary depending on your personal situation, your professional life, and your strengths. So, do not hesitate to negotiate! See the latest rates in effect:
OUR ADVICE: In order to find the best rate, we recommend that you consult at least two banks and a real estate broker.
GOOD TO KNOW
The lending bank can no longer require you to direct your income (for 10 years). The relevant articles of the Consumer Code were repealed by the Pacte law of May 22, 2019 (article 206).
Calculate your debt capacity
The debt capacity is the maximum amount that you will be required to repay monthly. This is an essential criterion for banks. In theory, debt capacity should not exceed one third of income.The remaining 67% are considered as the “rest to live”, that is to say the sums necessary, each month, to live decently. Good to know: Loan insurance is not legally compulsory, but it is practically impossible to obtain credit without it being associated with insurance.
The importance of a proper loan application file
To process home loan applications, banks require a file. The latter must be established rigorously to avoid any refusal. The more the file is clear, detailed and puts you forward, the greater your chances of obtaining credit. Moreover, it also speeds up the process.
Tip: To convince your banker, you must therefore take the time to take good care of the form of your file.Presentation of supporting documents.For the search for financing, it is recommended to canvass several banks. In general, they always ask for the same supporting documents to grant a mortgage . This is why it will be easier to gather the required documents in one go. You will therefore submit the same file to all the banking establishments that you will question.
During your appointments with the banks, bring the original documents as well as the copies. This will allow you to verify and certify the documents you are going to give them. In a co-borrowing situation, the required documents must be provided for the borrower and the co-borrower.
The terms of a home loan
To obtain a home loan , you must meet the conditions imposed by your bank. Indeed, the analysis of your request goes through certain criteria. Here are the main requirements to consider when you want to get a home loan:
The personal contribution
The personal contribution represents the amount you invest in your mortgage . For the banks, it is proof of your financial seriousness. This sum will generally be used to pay agency fees or notary fees. The personal contribution generally amounts to at least 10% of the sum borrowed, ie €30,000 for a loan of
GOOD TO KNOW: With a high contribution, you can better negotiate the interest rate and the duration of the loan.
Do not hesitate to make an appointment with our experts. It’s non-binding!
For each mortgage application, bankers carefully scrutinize your financial health. Among other things, they will check:
Your professional situation plays a major role in obtaining your mortgage. Indeed, having a precarious employment contract, such as a CDD for example, greatly complicates the task. The same is true if you are self-employed. For banks, people with job security are preferred.
The advantage of a household is that it borrows from two: in the case of a joint loan, you can highlight the most favorable professional situation.
Attention, it is not question of the amount of your income. For banks, it’s a matter of security . Lending money to an employee on a permanent contract makes it possible to ensure that he will be able to repay, without delay or unpaid.
If you have a CDD, several elements can work in your favor despite everything:
Are you unemployed and want to get a home loan? If this is not impossible, the course may be a little more difficult.
To put the odds on your side, we advise you to consolidate the outlines of your project, to seek aid (PTZ, PAS, etc.), to have the most significant contribution possible and to manage your accounts. irreproachably