You wanted to take out a mortgage to buy the house of your dreams. All about your project, you failed to validate an essential point before launching your research: your financing. And, unfortunately, your banker has just refused it. If we don’t have a magic formula to make him change his mind, here are all our tips to better present your request to other lending organizations.
real estate loan, a matter of risk
A real estate loan is granted in order to finance a project to buy or build a property. This loan runs over several years with all the risks that this entails for the banking institution: loss of employment, illness, divorce, etc. This is why a bank is particularly demanding with regard to the profiles of borrowers. The higher the risk of non-repayment, the harder it is to obtain credit.
To properly assess yours and prepare a solid file, it can therefore be very useful to be accompanied, in particular by a broker like Vousfinancer.
Read also: The steps to prepare to take out a mortgage
The assessment criteria for granting a mortgage
If the French default rate is the lowest in Europe, it is certainly not the result of chance. Indeed, when a bank examines a mortgage file, it assesses your file according to different criteria:
- personal contribution,
- income and debt capacity (your living allowance must be sufficient),
- professional and personal situation,
- ability to save,
- maintenance of your account (chronic bank overdrafts).
Before committing to a sales agreement, make sure you have an agreement in principle from your bank and ask to insert a condition precedent for obtaining a loan. If the bank refuses, it will provide a certificate of refusal justifying the cancellation of the purchase commitment.
Keep up to date with real estate news with 123immo.info.
The keys to getting your mortgage
As we have seen, specific criteria are involved in the decision whether or not to grant you your mortgage. And, if your bank has just refused it, know that another banking establishment can grant it to you. Indeed, the conditions for granting a loan really vary according to the commercial strategy of the banks. So don’t panic and work on your case.
1. Clean up your bank accounts
Shift your purchase project and get your accounts back on track. Make sure you have no overdrafts for at least six months. A bank always appreciates well-kept accounts which often favor the granting of mortgages.
2. Increase your personal contribution
If you cannot ask relatives to help you, open a savings account. You thus reduce the amount to be borrowed, comply more easily with the rule of 33% debt capacity, while reducing the risk for the bank.
And, think about using the loans acting as a personal contribution:
- Housing action loan (ex-1% housing),
- Zero-rate home savings loan.
Finally, be aware that municipalities offer aid to their citizens for first-time buyers, in particular in Île-de-France, Nantes, Toulouse, etc.
3. Balance your consumer loans
You prove that you are reasonable and a good payer. A banking organization will therefore be more favorable to granting you your mortgage.
4. Land a permanent contract
It’s sesame to get his credit. Banks pay attention to a stable situation with fixed income. For a couple, when one of the two is freelance or on a fixed-term contract, the debt capacity is essentially calculated on the permanent contract.
Are you temporary? The Social Action Fund for Temporary Work (Fastt) gives you the best advice to help you obtain your mortgage.
To conclude, before applying for a mortgage, give yourself a short year of preparation in order to fully understand your situation. If you are in a hurry, you can always go through a mortgage broker. This professional plays the competition and defends its cases with partner banks. You will only have to choose the one with which you wish to conclude.
Read also: Compare mortgage offers: how to do it?