The steps to follow to apply for a mortgage
It is almost impossible to embark on a real estate purchase without obtaining a loan from a bank. To achieve this, it will be necessary to make an application by following a certain number of steps. Discover the steps to follow to apply for a mortgage!
COMPARE INTEREST RATES AND TERMS FROM DIFFERENT LENDERS
You want to apply for a home loan and you don’t know how to go about it. The best thing to do is to look for the best credit institution : to find one, you can go to lesfurets.com to compare the interest rates and conditions of different creditors.
This is a real estate loan comparator that will help you estimate the feasibility of your project, benefit from the support of a broker and the best interest rate.
USE OF A BROKER
The mortgage broker is actually specialized in negotiating the most interesting financing for the borrower. The help of a broker is also very important to build your loan file and make you benefit from advantageous conditions. He can direct you to aid for the purchase of real estate such as the zero-rate loan (PTZ) or the social accession loan (PAS).
THE CONSTITUTION OF THE FILE
If you are building your file yourself, you will have to prepare it well, as well as the interview with the bank. It is important that the file be complete and up to date to prove your borrowing capacity. Indeed, it will be difficult, if not impossible, for you to obtain a loan if the file is marred by payment defaults, bank overdrafts or excessive indebtedness.
CHECK YOUR BORROWING CAPACITY
Another important step in taking out a home loan is to check your borrowing capacity and debt-to- equity ratio . This is a fundamental step that allows you to know the amount of mortgage you can claim. Indeed, you will have to add your borrowing capacity to your personal contribution and the aid you can request to know your purchasing capacity and possibly correct your real estate project.
To get an estimate of your borrowing capacity at the best rate, add up all of your annual income [salaries, rental income, alimony] and subtract your various expenses. You thus obtain your real annual income, which must be divided by 12 and then multiplied by 33%, ie the maximum debt ratio [debt capacity]. The result thus obtained is nothing other than your monthly borrowing capacity. From this result, the banks will be able to determine the total amount of your loan , taking into account the repayment period on which you wish to commit.
GET PRE-APPROVED FOR A HOME LOAN
To apply for a loan , you must also have pre-approval. This is obtained with your solvency report or credit report. To build the file, you will need to provide certain supporting documents such as a letter of employment from your employer or other proof of source of income. You will also have to justify the origin of the down payment . It can be savings, donations or loans.
Financial institutions generally give their response within 10 days to 3 weeks and in the best case, an agreement in principle with some reservations. Indeed, the loan can be canceled if the financing is not regular or if the purchase is not concluded.
Once the bank decides to grant you the loan, it then sends you the credit agreement by registered letter . You therefore have a period of 10 days to sign it and return it from the eleventh day. If you do not have an account with the bank providing you with the financing, you will need to open one to receive the funds.