Key steps for a mortgage application
You have fallen in love with real estate and want to take out a loan to finance your project? Investing in stone can be an interesting investment. However, many steps must be taken before arriving at the key collection, including the loan application. Because even if you have the means, it is always advantageous to use a mortgage to finance your property, especially as the interest rate has reached its lowest level. As part of a mortgage application, here are 5 steps to consider :
Step 1: Evaluate the borrowing capacity before applying for a home loan
Before you commit to a home loan , it is important, if not essential, to calculate your borrowing capacity. This will allow you to know how much you will be able to pay each month with the bank of your choice. Remember that this amount must not exceed 33% of your income. To calculate your borrowing capacity, you will need to know your monthly income (salary and family allowances), as well as your monthly expenses (water bill + electricity, rent if you are a tenant, etc.).
Step 2: Perform a mortgage simulation
When you have found the property that best meets your needs, now is the time to choose the bank that can support you in your project. Financial institutions can provide you with loan simulations. Do not hesitate to compare offers. It is from this simulation that the loan application can be concluded or not. All you have to do is provide all the necessary documents to assemble your file.
Step 3: Gather the documents needed to mount the file
To apply for a mortgage , you must gather all the documents that will constitute your file. For this, you will need a piece of identification, a family booklet if you are in a couple, a proof of address, the last three payslips, a notice of taxation of the household tax and proof of your personal contribution. If you are a craftsman, a trader, a farmer or a liberal profession, you must add the last balance sheet of your company to these documents.
Step 4: Subscribe an ADI insurance
In order for your application for funding to be accepted, you must subscribe to an Invalidity Death Insurance or ADI. This is necessary so that the funding agency can protect itself in case of accident, death or other reasons that may affect the non-repayment of the loan. The rate imposed by the insurer is defined according to your state of health and your age.
Step 5: Sign the mortgage offer
Following your loan application, the bank will send you, by mail, a document setting out the characteristics of the credit: amount, repayment period, rates, guarantees … A signature will then be requested. You have 10 days to accept the offer or not.
Now that the loan application is granted, all you have to do is ask your bank to transfer the amount borrowed. You must then set a date of appointment with the seller of the property you are interested in signing the final deed of sale .