Our BARNES team, through this article, is going to give you the essential keys in order to constitute a real estate loan file with a bank. This advice will allow you to prepare yourself in the best possible way and thus to put all the chances on your side to obtain a real estate loan.
- Establish the amount of your personal contribution
In order to prepare your file for a real estate loan, it is very important to have an idea of the amount of your personal contribution. Indeed, the more important this contribution is, the easier it will be to convince the banks to lend you money. Our BARNES real estate experts advise you to have a personal contribution representing at least 10% of the amount of your loan in order to be able to justify your loan application. This amount is generally used to cover the costs related to the file (notary commissions for example...).
- The aids put in place
During the creation of your file, it is important to find out about all the assistance you can benefit from. Of course, these aids will differ from one household to another. Our BARNES experts advise you to find out as much as possible to see if you are eligible for assistance. If this is the case, it will be an additional argument to convince the banks in your loan application.
- Debt capacity
In order not to put yourself in a critical financial situation, it can be judicious to calculate your debt ratio in order to know what your limits are, and up to what amount it is judicious to borrow money while keeping a healthy financial situation. Our BARNES experts advise you not to exceed the percentage of 35% of your income when calculating the total repayment of loans. Moreover, the higher your debt capacity, the more difficult it will be to convince the banks.
- Have a stable professional and financial situation
In order to grant you a bank loan, banks will check both your professional and financial situation. It will be more reassuring for a bank to see that you have been in your job for several years, that you are a stable person. If you have just changed jobs, we advise you to prepare arguments to justify this new position. The same applies to your financial situation. For example, if your account was overdrawn last month, we advise you to prepare arguments to explain this. Banks will try to identify you through these different data, so it is very important to reassure them about your financial and professional stability.
- Competitive bidding
In order to have the best interest rates and to show the banks that you are an expert in the market, it is essential to find out about the offers available on the market. This will allow you to negotiate your interest rate as well as possible but also to show the bank that you have several solutions in case of refusal. It is possible to use a broker to find the best possible offer on the market.
Our BARNES consultants are at your disposal to answer all your questions and to help you put together your real estate loan file.