Due to historically low rates , wanting to apply for a home loan from your bank has never been so tempting. Even if economic conditions are favourable, banking organizations continue to be demanding.
We present to you the conditions that must be met to claim a mortgage .
Debt ratio
The debt ratio corresponds to the share of income devoted to repaying the loan. It is generally between 33 and 35% .
To best calculate your debt ratio, banks take into account your ” rest to live ” and your family quotient . They then study in detail your sources of income and your assets.
Personal contribution
The bank will be more likely to grant you a loan if it is a moderate sum. To do this, it pays attention to the personal contribution that you are able to devote to your real estate project .
In principle, a minimum contribution of 10% of the total price of the real estate purchase is requested. The larger it is, the more attractive your loan rates will be. This is because you are proving you can save .
Under certain conditions, it is possible to obtain a loan without contribution . This concerns first-time buyers , customers with high incomes and real estate investors . To benefit from it, the bank will study the management of your accounts and your debt ratio.
Term of the loan
The duration of the loan is a crucial element for banks. Indeed, the more debt you have in the long term, the more they take a risk by lending you money. You will therefore have a better chance of having your application accepted if you opt for a short loan.
Since banks need guarantees, they will also take your professional situation into account .
Employee on permanent contract or civil servant
Being an employee on a permanent contract or a civil servant represents the ideal professional situation for obtaining a mortgage, as your income is less likely to be revised downwards or to be negatively impacted.
It may be interesting to include in your file the salary grids defined for your career or the opportunities for promotion . Similarly, it is recommended that you no longer be on a trial period for more than two months. Finally, the bank taking as a reference the income of the last three months , it is advisable to wait if you have recently benefited from an upward revaluation of your salary .
Fixed-term employee
Due to the precarious nature of fixed-term contracts , some banks systematically refuse mortgage applications. Others agree to study the profile of borrowers, focusing in particular on the duration of the contract and the nature of the activity .
The longer your contract, the more likely you are to see your application successful. If you accumulate several fixed-term contracts in the same sector of activity and can justify a short break between each, you show the bank that the sector is dynamic and that the risks that you find yourself unemployed in the long term are slim.
The self- employed and auto-entrepreneurs have, in principle, more difficulty in gaining confidence in the banks. This comes from the irregularity of their income. So that banking institutions can better take into account your borrowing capacity, you must have three years of experience under this status.
At the same time, think about smoothing your income , in order to facilitate the comparison with any monthly payments to be paid. Also highlight the progress of your turnover and ask for mission guarantees from your customers.
Without a job , it can be especially difficult to get a home loan. To achieve this, you will need to provide collateral. You can, for example, claim aid , aimed at supporting the financing of housing for the unemployed . There are several:
To obtain a mortgage, you must take out borrower insurance . You will then be asked to complete a health questionnaire , stating your current situation, but also your background.
The healthier you are, the more banks will be encouraged to give you a loan. If this is not the case, the AREAS convention was created to help people in poor health.
Over-indebtedness
Before giving an answer to your request, the banks consult the central file of checks, as well as the national file of incidents of reimbursement of loans to individuals . If you are or have been stuck with the Banque de France , this is detrimental to you, since you are considered to be a bad payer.
To easily collect and share all the supporting documents required for your mortgage application, use the “Create a mortgage loan file” procedure in Digiposte. It automatically retrieves the appropriate documents present in your Digiposte and suggests that you add the others.
