Although mortgage rates are always very low, it is not necessarily easier to obtain a mortgage. With the economic crisis, banking establishments are indeed more cautious and restrictive in their conditions for granting loans. To borrow and realize your real estate project, it is therefore essential to ensure that you have a solid file.
Here are 6 tips to negotiate your mortgage
Build up a significant personal contribution
One of the first points the bank learns about is the amount of your personal contribution. Today, for a real estate project, the banks no longer lend without the loan applicant having a personal contribution in the amount of 10 to 20% of the total amount of the credit. This amount is used in particular to cover the additional costs of the purchase of real estate. You should therefore not hesitate to make a sufficiently substantial personal contribution by saving on a Savings account or a home savings plan.
Have a stable job
It is most often essential to work on an open-ended contract to obtain a mortgage. Also, your seniority in the company can be an advantageous argument. In the case of a liberal profession, you will have to justify your income over the last two or three years by submitting a balance sheet to your banker.
Control your accounts
Make sure you have not been overdrawn during the months preceding your mortgage application because this point will not work in your favor. If, on the other hand, your bank realizes your ability to manage your accounts well, you will gain points by gaining its trust. Then, it is essential that the amount borrowed does not exceed one third of your net income.
Ensure that the file is complete
So that the bank does not doubt your seriousness and not waste time in your efforts, make sure that your mortgage application is complete before submitting it. Note that once the sales agreement has been received, you have 45 days to justify obtaining your credit.
Limit your borrowing period
By reducing the repayment period of your credit as much as possible, not only will you reduce its cost but you can access a more attractive borrowing rate because the bank takes less risk with you.
Think about the added value of the property finance
By investing in real estate with significant potential, the added value generated during the possible and future resale of the financed property will reassure your bank. Indeed, if the latter knows that in the event of a problem, she can recover the amount loaned through the resale of the financed property (mortgage), she will lend you more easily.