Due respect to Cassandra, the banks have not stopped financing real estate projects.Only, they are more cautious than in the past, and will often look twice before committing. Here are 10 tips to LaVieImmo.com to put the odds on your side:
(LaVieImmo.com) - To avoid any unpleasant surprises, here is a list (not exhaustive) of ten points to be reckoned with before presenting your case to a bank or credit broker.
1) The amount of the contribution
There is no miracle. Banks, which have been in the past to finance real estate projects at 100 or even 110%, now show very strict on the financial contribution of the borrower. This should provide at least 10% of the amount borrowed. Most banks believe that the contribution would cover the different costs - notary record and guarantees, among others. According institutions and records, the rate varies, and some banks prefer that their client has 20% contribution, minimum. Passbook, housing savings plan, anticipated unblock your participation ... must be firing on all cylinders. " This may seem like stating the obvious, but the contribution is important, better. Sometimes just a few hundred euros , says Ari Bitton, president of Brokerage AB.
2) Professional Stability
More than ever, banks fear instability. " And above all professional instability ," says Maël Bernier, spokesman Empruntis broker.Indeterminate term contracts and seniority are the new sesame access to credit. For professionals and craftsmen, it is recommended to provide two or three years of bankruptcy.
3) Stop discovered!
Before deciding whether or not it grants a loan, the bank is studying the financial condition of the borrower. It is therefore necessary to avoid being exposed in three to six months before the credit application and, to the extent possible to repay loans to the type of consumptionrevolving . " If the borrower is blameless in this respect, it will be easier not only to get a mortgage , but also to negotiate with its bank the terms of the loan ," says Sandrine Allonier, head of economic research and spokesperson the broker Meilleurtaux.com
4) Monitor its debt capacity
This is perhaps the best-known rule of candidates for the loan, the so-called "33%". The exact rate varies from one bank to another and according to the records, but generally, the amount of the loan should not exceed one third of the net income of the borrower, summarizes Maël Bernier. And if the banks were able to show streaming in the past, the rule is now strictly enforced - " even for high incomes ," says Maël Bernier.
5) Possess a regular savings before taking ...
At least as far as the level of income of the borrower is its ability to save the bank will prove sensitive. " Some banks will prefer to lend to a customer without necessarily touching a big salary, manages to put money aside regularly, even slightly, to one that better makes his living but finds himself discovered the 15th of each month ... "says Maël Bernier. It is better to delay a few months his request, the time to improve her management skills.
6) ... but after!
banks tend increasingly to also worry about the level of savings the borrower once the credit granted. The repayment of the monthly payment should not totally exhaust its ability to put money aside. Keep this in mind when preparing your file.
7) Attention to missing pieces
We might have had to start there: according to Ari Bitton, " submit a complete file with his banker or broker, the basics of the mortgage application ." You show up with only half of the necessary documents, or send your payslips and other statements over water will be the gift to annoy your partner - and make you potentially suspicious to him.
To be sure not to forget anything, here's the list of documents to bring. Besides the sales agreement if already signed, each co-borrowers must provide:
- his last two tax notices;
- his last three pay slips;
- his last three bank statements;
- proof of identity (CNI, passport);
- proof of residence (utility bill or telephone ...)
8) Do not take your time too
In the same vein, it is best not to wait too long to go in search of funding. At the receipt of the sale agreement, the buyer of a property has a period of 45 days to justify the seller to obtain his credit. It is recommended not to waste time.
9) Be careful where you buy
More real estate market where you buy is dynamic, the more chances to sell your property quickly and in good conditions are high. You do not necessarily think when you buy, but your bank, it has a good chance to get attention.
10) Try to lower its borrowing duration
The risk taken by the bank increases with the duration of the loan it accords. It can therefore be seen to minimize the duration of the loan ... within the limits of the possible. " A year or two may suffice. On hundred records financed over 25 years, thirty could just as well be about 23 or 22 years , "says Ari Bitton. A particularly interesting solution that term reduction may be accompanied by a slight decrease in rates.