After determining the real estate project you want to carry out, whether it is the purchase of a new or old home, you will need to take out a mortgage : you will therefore need to apply for a mortgage . To do this, several steps are necessary. Borrowing accompanies you step by step.
Your request for a home loan can be made with your current bank, but also with other establishments or a broker.
Several key steps must be followed before and during your application: define your borrowing capacity, find the best rate, build your borrowing file, obtain an agreement in principle from the bank until the release of funds at the notary.
Your file must be solid: a stable professional situation, a debt ratio of less than 35%, good management of your accounts and your savings, and, if possible, a significant personal contribution.
How to apply for a home loan?
Apply for a mortgage online or in an agency? From your bank or a broker
Applying for a home loan from your bank
he will carry out a mortgage simulation for you. You will have to negotiate the mortgage rate yourself, and you are not guaranteed that the proposed mortgage will be the most advantageous.
Go around the banking establishments
This approach can allow you to access more interesting mortgage offers because you then put several banks in competition. But it is time consuming . However, in the case of a real estate purchase, you generally have 45 days to obtain your financing . Moreover, canvassing by yourself does not guarantee you to obtain the best possible rate in relation to your project and your profile: negotiating is a job!
Ask a real estate broker
You can also apply for a mortgage through a mortgage broker. The support of this credit professional will be invaluable to you. On the one hand, because it is able to get you the best rate , but also the best conditions (for example by negotiating the IRA – Indemnities for Early Repayment – or even the modulation of maturities) for your mortgage. A fine negotiator, he enjoys a certain weight with the banks, as a business contributor. But that’s not all: your broker also has extensive knowledge of banking deadlines. He thus knows which establishments have the shortest processing times according to the activity of the moment, and therefore, to which bank to direct you : let’s not forget that for a real estate purchase, you have 45 days to obtain your bank loan!
What are the stages of a mortgage application?
Your mortgage application must follow certain key steps. Borrowing explains to you, step by step, the steps to take and the deadlines to respect .
Define your borrowing capacity
This is THE essential first step before embarking on your project. It is essential to determine how much you can borrow from a bank in order to avoid a possible denial of financing . Perhaps you are wondering what salary to borrow €150,000? Or what monthly loan payment can you afford with a monthly salary of €2,000? The borrowing capacity then makes it possible to determine it based on two key elements: the debt ratio (maximum 35%) and the rest of the household to live on . The Emprunt is home loan calculator allows you to instantly know the budget you have to buy your future home.
Find the best mortgage rate
This is certainly the most crucial step in your project: finding the best mortgage rate . Indeed, the interest rate will determine the total cost of your loan. These rates vary from one bank to another, but also from one period to another. The rates valid in 2021 will not be the same as those applied in 2022 for example. In addition, banks are increasingly demanding with future borrowers. So to put the odds on your side, the best option is to use a broker .
Expert in real estate credit, he will be the most qualified to find you the best real estate rate for your loan. Above all, it will save you time. Thus, no need to go around the banks: he takes care of contacting them for you to find you the best rate. In contact with partner banking establishments, he is then more inclined to make his network work and defend your file . And for that, you need a well-assembled file.
Prepare your file
It is essential to compile a complete file to make your request for the granting of a mortgage and to know if you meet the required conditions . This file is indeed the first thing that a bank looks at in order to consider financing your project. Some information may vary depending on your family or professional situation. The supporting documents required for a mortgage application are generally as follows:
your marital status: an identity document, a family record book or even a marriage or PACS contract, for example;
your banking situation: bank account statement, amortization table or even certificate for consumer loans, your last three account statements or proof of personal contribution if this is the case;
your real estate project: if you already have a sales agreement or an agreement to sell, a building contract or a building permit, or documents corresponding to a zero-rate loan application if you are a first-time buyer.