Before you go into buying an apartment or a house, you’re going to have to convince your bank to give you a loan at a good rate. Here are our tips.
Each week, MaTVimmo delivers to Challenges.fr its advice on buying, selling or renting a property.
If the banks give loans on a massive scale, they are very attentive to the quality of the files – due to both fears of price cuts and economic conditions – and are studying the real estate project as such (situation of the property , work or not …) than the financial and professional situation of the borrower.
It is therefore very important to present a good file to the bank in order to put all the chances on its side to obtain financing, but also in order to have the possibility to negotiate the rate of its credit.
1) Avoiding bank overdrafts, and presenting own statements of accounts
The bank will ask for the last 3 statements of account of the borrower that it will peel in detail: transfer, purchases, direct debits. Avoid compulsive purchases and bank overdrafts that will show a financial profile rather cicada than ant! Better on the contrary, if possible, show its ability to save small sums each month by setting up a wire transfer a few months before …
2) If possible, refund the current consumption credits
The bank will ask if there are credits in progress (auto, revolving …), and the borrower is obliged to declare them. This will be taken into account in the calculation of the credit which it may grant in order not to exceed 33% of indebtedness. If the credit expires within 6 months, no worries, but if not, it is better to try to repay it in advance, the borrowing capacity will be much more important and the file of better quality.
3) Have contribution, 10% if possible
Today, the majority of banks ask for a 10% contribution of the property in order to cover at least the costs of notary and guarantee. It is advisable because it allows the borrower how to amortize the value of the asset at the beginning of the repayment of the credit, not just the costs … In some banks, one can still borrow without contribution, especially if one is young, because banks are more tolerant. But having an intake also helps to have a better rate. At least 10% of the contribution can lead to a reduction of 0.20 point in some banks
4) Have a stable job situation, or two is even better
This seems obvious, but it is very important for banks, so much so that some even look at the financial health of the employer. In addition, having large incomes can also provide better conditions. In some banks, the spread between two profiles with different incomes can reach 0.40 point.
The most sought-after profiles nowadays: couples with permanent contracts, with prospects of evolution and this even if they are at the beginning of professional life. Banks seek a long-term relationship with their clients …
5) Have savings, take multi-risk dwelling …
There are other things you can do to improve your business: if you already have savings products that you can repatriate to the new bank or if you take out the home insurance in the bank, the bank will be able to grant you rate cuts (0,10 points) or offer you the fees!