Are you about to own your dream home? Do you want to get the best possible real estate financing to make your project a reality? For this, it is wise to prepare a complete and relevant file. This is a daunting and complicated task, especially if this is your first real estate acquisition. The file must contain a number of mandatory supporting documents. Furthermore, to put the odds on your side, it is important to improve your borrowing profile.
What are the supporting documents required for a home loan application?
To decide whether to give you a mortgage or not, the bank needs to know your situation and the details of your project. This allows him not to take risks, but also to protect you by avoiding over-indebtedness.
Banks then ask you for the following supporting documents:
- identity document,
- Family Book, Marriage Book or PACS (Pact of Civil Solidarity) Certificate,
- proof of current address,
- Three recent payment statements,
- Three final tax notices,
- Three recent bank statements,
- Signing the sale agreement or reservation contract in the event of a VEFA purchase (sale in case of future completion).
In general, all lending institutions require the same supporting documents. Before offering it to your bank, it is highly recommended that you improve your borrowing profile.
How do you improve your borrower profile?
Before giving you a mortgage, the bank checks that they can trust you. If the application file really gives it a good overview, it will be more reassuring if you provide a good metafile.
clean your accounts
While your file is being studied, your recent account statements will be privately checked. Make sure that there is no commission to interfere or reject the direct debit. Also, even if overdrafts are allowed, know that your banker sees it with a very bad eye. If necessary, delay your order a little while you clean up your banking situation.
Pay off your consumer loans
Consumer loans do not necessarily affect your borrowing profile. However, they greatly affect your ability to debt. Also, if possible, pay it in advance.
Account management is one of the most important criteria for lending institutions. In this regard, know that savings are adequate evidence that you are managing your money responsibly. Make regular transfers to a life insurance or savings account to improve your borrowing profile.
How to calculate the budget corresponding to its resources?
To find out if a lending institution can accept your mortgage application, they meticulously examine your resources. To do this, try to offer him a coherent project.
Assess your ability to borrow
Borrowing capacity refers to the amount that you can borrow from a bank for your project. It depends on two variables, namely your debt ratio and your remaining life.
Therefore, your debt capacity should be carefully calculated so as not to jeopardize your financial health. In general, your monthly payments (all credits combined) should not exceed a third of your income. Moreover, you risk experiencing financial difficulties, and the bank will lend you less easily.
Appreciate your personal contribution
Personal contribution is an element that should not be overlooked in the context of a mortgage application. It should represent between 10% and 20% of the price of the accommodation to be purchased. Below, the banking institution may refuse to give you a loan. This personal contribution is also used to cover various expenses related to the process, such as filing, notary and guarantee costs.
The more personal contribution you make, the better. It is, in fact, strong evidence of your ability to save and your commitment to the project.