1 - What will be the amount of your personal contribution?
The personal contribution is the amount you can invest for the purchase of your property. It must make it possible to cover various costs: notary, file, guarantees... According to the banks, the personal contribution must represent between 10% and 20% minimum of the amount of the operation. Savings, subsidized loans, early release of your employee savings... Don't hesitate to fire any wood: the greater the amount of your personal contribution, the more you will benefit from an advantageous rate!
2 - Are you entitled to aid?
PTZ, approved loan, loan for social accession, loan for home ownership... The subsidized loans granted for the purchase of the main residence can help you to constitute a personal contribution. To find out if you can benefit from it, contact the town hall of your municipality or organizations such as Action Lodgment, your Departmental Agency for Information on Housing (ADIL) or your pension fund.
3 - What is your debt capacity?
Who says loan says monthly payments: how much can you repay every month under your home loan? As an indication, your monthly repayments, all credits combined, should generally not exceed one third of your income.
You can calculate your borrowing capacity or the amount of your future monthly payments directly on our site.
4 - What is your financial situation?
It is preferable not to have been overdrawn in the 3 to 6 months preceding your credit application. If you have the possibility, repay your revolving type of consumer credit. Thus, not only will you increase the chances of obtaining credit, but you will also be able to negotiate the terms of the loan.
5 - Is your professional situation stable?
In these difficult economic times, banks fear the professional instability of loan applicants. They therefore give preference to candidates holding a permanent contract (CDI), preferably having several years of seniority in their company. Are you a craftsman or liberal professional? If possible, provide 2 or 3 years of balance sheet.
6 - Fixed rate, revisable rate… Do you know the different loan formulas?
You can opt for either a fixed rate loan or an adjustable-rate loan.
In the 1st case, the rate is defined when the contract is signed: you therefore know in advance the amount of your monthly payments for the entire duration of the loan.
In the second case, the rate may vary upwards or downwards throughout the repayment period, mainly depending on changes in the key rate of the European Central Bank.
You can also opt for a mixed-rate loan. This is a loan divided into 2 periods: a 1st at a fixed rate, followed by a 2nd at a variable rate.
How to choose? Essentially depending on the current level of rates and your sensitivity to risk, because the adjustable rate includes a significant unknown element.
7 - Have you used competition between banks?
Your bank may not be offering you a home loan at the best rate. Do not hesitate to question several establishments to play the competition or contact a broker who will find for you the cheapest possible credit.
8 - Will you be able to decipher the offer that is offered to you?
Do not rely solely on the credit rate. Sift through all the other components of the offer: flexibility (prepayment, modulation of maturities, etc.), cost of insurance and guarantee, administration fees, etc. If you take out a fixed-rate loan, your banker must tell you the TEG (Global Effective Rate). This rate is a good element of comparison since it incorporates all the costs of the loan: nominal interest rate, administration fees, insurance, etc.
9 - What guarantee for your loan?
To protect against any default, the bank will require a guarantee on the property you buy. This guarantee can take different forms: privilege of lender of money (except for a property acquired in Sale in the Future State of Completion), mortgage or surety. Find out more about each option to choose the guarantee that best suits your situation and your project.
10 - Which insurance to choose?
All mortgages are backed by a borrower's insurance policy that covers you and your loved ones in the event of death/PTIA (Total and Irreversible Loss of Autonomy). You can take out the insurance offered by the lending institution or opt for another contract, provided that the guarantees are equivalent. To choose, compare the cost of insurance as well as the level of guarantees offered (some contracts cover job loss, for example) and exclusions.
Thank you for this information.