Marine Balik, Jellyfish, France
Do you want to buy a property but your loan application has been rejected? Fortunately, there are solutions to overcome this situation. Immediately, we evaluate.
The increase in rents, the desire to invest in a safe bet, the realization of a life project … There are many reasons that lead to the desire to become a property owner; An ambition that requires in most cases resorting to a loan to complete his project. However, it may happen that the credit application is rejected by the bank; A situation that can be very sensitive, especially when you have already signed a sale agreement.
How can I object to a loan rejection?
If your loan application is rejected by your bank, you can theoretically request a re-examination of your file. To do this, you must then mail your application by sending it by registered mail with an acknowledgment of receipt. In your letter, you will then have to explain in a logical way why, in your opinion, the rejection of the initial loan is unfounded. Your letter must also be supported by all supporting documents that will be used to support your statements.
Credit Refusal: What are the Possible Causes?
However, to be able to argue in your favour, you still need to know the reasons that initially motivated your bank’s refusal. But this is where the issue gets complicated. In fact, there is no legal obligation obligating banking institutions to disclose their motives. As a result, the refusal may remain entirely at the discretion of the banking institution.
However, there are a number of tangible factors that can initially induce credit refusal. An occupational situation deemed precarious, an age said to be “too advanced”, an over-indebted state or even a serious medical history can really lull the banks. However, you should be aware, for example, that if your debt ratio does not exceed 33%, then, in theory, this criterion cannot be considered against you when applying for a loan.
Determine the sources of rejection
In some cases, there are ways to check the reasons behind the initial rejection from your bank. Thus, you can for example turn to Banque de France to check if you are registered with the FICP (National File for Payment Incidents); A tool often consulted by banks in the context of loan applications.
Other Possible Treatments
If your postal appeal does not lead to a favorable response, you can double your chances by submitting your application at several banking institutions. In addition, you can also try to improve your profile, in particular by increasing your personal contribution or by buying back credit to reduce your debt ratio and thus improve your ability to repay.
In the worst case, and if you have already signed the agreement of sale, know that you can refer to the so-called suspended clause, provided that it appears earlier in the agreement of sale. This action will allow you to cancel the agreement with the sellers.