Immo/Video The 10 steps to get a real estate loan
1: Assess your borrowing capacity
Before you start searching and browsing real estate listings, it is advisable to assess your borrowing capacity with a bank or a real estate loan broker.
This will allow you to visit properties that fit into your budget.
Home loans: will you be able to borrow in 2020?
2: Sign a sales agreement
Did you find the right apartment for you? Make an offer to the seller.If it is accepted, a provisional sales agreement will be drawn up.This pre-contract, which unites seller and buyer, is not mandatory but highly recommended.
Each party undertakes to conclude the sale and purchase of the property.It avoids unpleasant surprises before the signing of the final deed in front of the notary.
The sales agreement contains suspensive conditions, some of which are legally provided for.For example, in the case of a purchase financed by a loan, the sale takes place only if the purchaser obtains his loan.
This clause ranges from 30 to 60 days, with an average duration of 45 days.If the credit is not obtained after this period, the promise to sell is therefore cancelled, after having informed the seller of the reasons for the bank refusal.
3 : Search for the mortgage that meets your needs
You signed a provisional sales agreement.Now you have to find a mortgage!
There are two solutions: go round the banks and compare the different offers or use a broker.This one will take care of negotiating your credit with its partner banks on your behalf.
If you choose to take the steps alone, make appointments in advance so as not to waste too much time.
4: Negotiate the credit proposal
Whether with the help of a broker or on your own, you have the opportunity to negotiate bank offers.
By implementing a strategy of competition between banks, you will have the opportunity to lower credit rates or fees.
5: Create your file
Once you have chosen a credit institution, you must put together an application for a home loan.
You must provide the bank with your last three pay slips, the last two tax assessments, the preliminary sales agreement, proof of address, proof of identity and the last three bank account statements.The more complete your file will be, the faster you will get your home loan agreement.
If you call on a broker, he will help you put together your file and will take care of the commercial presentation: loan rate, choice of borrower’s insurance (delegation of insurance or group insurance), etc…
6: Get the bank’s approval
After receiving your file, the bank will decide whether or not to accept your application for a home loan.It will issue you with an agreement in principle, if it wishes to finance your project.
She will ask you to open an account with domiciliation of your income for the repayment of the loan.
You will be required to complete a questionnaire on your health history, etc., for the purchase of Loan Insurance.
7: Receive the offer of a mortgage loan
The loan offer is a document summarising all the terms and conditions relating to the mortgage loan you are going to take out.It will be sent to you by simple mail to your home address.
8: Give yourself time for reflection
After receiving your loan offer, you will be given a minimum of ten days to think about it.
During this time, you will still be able to cancel your application for a mortgage.
However, do not delay in returning the offer if you agree with the conditions, as the offer is valid for 30 days.But beware…
9: Accept the bank’s offer
In order to definitively accept the loan offer, you will have to return it signed, by mail, to your bank imperatively after the reflection period has ended (from the 11th day).
If you return the loan offer too soon, it will automatically cancel and you will have to start the process all over again.
10: Sign the deed of sale
Once the offer has been accepted, you will be able to sign the deed of sale, which must be signed at a notary’s office, to officially become the owner of the property.You will receive your title deed shortly thereafter.
One month after the purchase and signature of the deed of sale, you will start to pay your first monthly instalments defined by the credit rate and the borrower’s insurance rate.
With the help of real estate loan broker Credixia