You are preparing to invest in real estate : buying, building a house, renovating a house or apartment. a mortgage is needed!
The purchase of credits offers a simple guide for your mortgage : who to contact, how to prepare your credit, choose your credit, … while controlling your debt ratio!
Defining your project is essential!
A mortgage , it does not improvise! In order to be able to negotiate with the credit union you must use the same terms as your interlocutor. You must know what you want, what type of rate (see credit rate section) fixed or variable, revisable capped? You must be able to discuss each point with your interlocutor.
Your contribution will be a guarantee for the bank of your ability to save. As credit is becoming increasingly difficult to obtain, credit institutions need collateral and evidence. Your contribution is one.
Learn about your rights
There are funding aids, provided by your city, your employer etc. Find out from the website of the Ministry of Housing and the City and from your employer, you may be entitled to it. These credits are in general very advantageous like the 0% rate loan of the city of Paris or the 1% housing.
Consult different credit institutions
Do not limit yourself to your bank, consult several credit institutions (not just banks) to choose the financial partner that best suits you.
Do not stop just on the credit rate
The credit must be considered as a whole:
- The TEG (total effective rate) includes all the costs inherent in the credit (administrative fees, death, disability, disability insurance, etc.).
- Do not give in at too low rates , these are revisable loans, the posted rate is only effective for one year.
- Pay attention to asterisks *!
Ask for credit simulations
Have simulations of credits by the institutions consulted, these simulations will allow you to visualize the financing plan and the amounts of your monthly repayments.
The parts to provide for your mortgage
Your bank needs proof that you need to prepare your loan file. It will provide you with an exhaustive list here is a part: your payroll, your statements of account, your employment contract, your tax notice, a proof of address, an identity document etc …
Limit your debt ratio
You need to calculate what the banks call the “effort rate”, which is the amount you can repay per month, but not more than 30% of your monthly income. You must also take into account a possible change of professional situation (promotion, dismissal) for that make sure that your credit is flexible (increase or decrease of monthly payments).
Trade as much as possible
Negotiable items in a credit are, in addition to the credit rate : the fees, the insurance fees, the loan guarantee …
10 days of reflection for any credit
The law gives you 10 days to sign your credit report . This reflection period gives you the opportunity to reconsider your financing plan. During this period you have nothing to pay and the right to retract without any costs being claimed.
You have already subscribed several credits?
If you have already subscribed to several credits ( car loans , consumer credits , credits for your children’s studies , personal loans without proof ), the subscription of a new credit can be problematic: your budget becomes more difficult to manage, your debt ratio climbs. credit organizations are more cautious.
Do not panic ! First, study your debt ratio . This allows you to simply and quickly assess the portion of your salary that is allocated to monthly expenses. Be aware that the lower the ratio, the more stable your financial situation is. If your debt ratio flirts with the 33% know that credit agencies and banks can start cringe and grant you less easily your mortgage .
The solution is to reduce your debt ratio by reducing your monthly expenses. It is possible to reduce these charges simply and quickly by up to 60% by repurchasing credits . The principle of buying credits is simple: all of your credits are grouped into one and redeemed by the credit redemption organization of your choice. The latter offers to spread this new credit over a longer period of time, and reduce the amount of your monthly payments!
If you choose to consolidate your credits , and their purchase , know that it is not uncommon to negotiate with the credit buy-back organization, an additional credit (real estate, consumer, automobile, …). ), and kill two birds with one stone.
Make a request to buy back credits
If your debt ratio is too high, we recommend that you consult, alongside banks and specialized credit organizations, credit redemption organizations . A large number of these offers you a free and fast study of your file, with a response in principle on its financing and the redemption of your credits generally within 48 hours. You will quickly know the amount of interest on your new credit , and especially your monthly payments, but also know if it is possible to include a mortgage real estate decline for your new projects.