Tips to maximize your chances of getting a home loan

Buying real estate at current prices is not always the easiest thing to do. So, to put all the chances on your side, below are all our tips for obtaining the best real estate loan.

Have a personal contribution to successfully complete your real estate project

Before getting to the heart of the matter, let’s remember that a banking institution relies on several criteria to grant you a loan. Personal contribution is one of these parameters.

The question of the contribution plays a major role, when we are talking about a loan to finance the purchase of real estate. If having a contribution is not obligatory, it is, nevertheless, a determining factor in benefiting from improved conditions.

Note that banking organizations often refuse to finance the purchase of housing beyond its value. Why then?

When you buy real estate, you will surely be asked for fees related to this purchase. This could be notary fees, for example. Reason why a bank prefers to finance all or part of a home, but will systematically refuse the deed costs. This is why a personal contribution for these costs is essential.

Have a good professional situation to obtain a real estate loan

In addition to having a certain contribution, you must also demonstrate a good professional situation.

By good professional situation, we mean here by stable and regular income. These should allow you to cover the costs relating to the purchase of your property in Saint-Jean-de-Luz or in France.

Note: your job must not present too much risk for a bank. If the CDI is very popular with banking organizations, it is also possible to borrow even if you are on a fixed-term contract. It should be noted that banks generally prefer to finance households with low incomes, but with real employment stability.

Apart from the illustrations already cited above, your debt ratio is also a criterion to take into account.

This is the percentage designating the total of your monthly loan payments in relation to the income you have. Generally, a debt ratio of 33 to 35% serves as a threshold. This means that your accumulated credits, including your home loan, must not represent more than a third of your disposable income.

Note that from 33 to 35%, banks estimate that the risk of repayment default is high. So, to succeed in your real estate project, review the amount of your monthly payment, spreading the credit over a new period.

Build a relevant and impactful file to obtain a real estate loan

To obtain financing for your real estate project, you must prepare a convincing file. Be aware that many individuals see their projects fall through due to irrelevant files.

In some cases, these simply do not meet the advisors’ expectations. To put all the chances on your side, use a real estate loan broker to draft your file.

Since this professional knows bank policies perfectly well, he would be able to highlight your file. For information, in order to obtain financing for your project, you must present yourself with the supporting documents that the bank requires.