You can not acquire your property on the basis of your own funds. Therefore, you plan to borrow the capital from a bank .
Before filing your file, read about its credit acceptance process and the criteria that this bank will study carefully to put the odds on your side.
Step 1: How does your repayment ability affect credit acceptance?
The first element that a bank will consider is your repayment ability . This repayment capacity is based on three main criteria:
- Your personal contribution . Essential to the acceptance of the credit, this element will allow you, according to its amount, to negotiate the rate and the expenses.
- Your level of your resources . This level is calculated based on your last 3 pay slips and your latest tax notice, it allows the banker to calculate and consider the (fundamental) rule of 30% of your debt load.
- Your disposable income . By subtracting your monthly income, your taxes and the monthly payment for the loan, the banker determines the “rest to live”. Note that the composition of your home influences this point.
ATTENTION : holding an account or a housing savings plan (CEL or PEL) does not influence the institution in its decision making.
Step 2: How does the banker calculate your debt rate?
Collecting these items allows your financial advisor to compare the ratio of expenses to resources to determine the debt ratio .
The charges taken into account include all outstanding credits. Among the resources, your housing assistance is also included in the calculation of the famous rate.
At this point, the bank also takes a few minutes to study the movements of your bank account . Thus, your banker will not fail to watch if your account has discovered overdrafts!
In the same way, the establishment will check if you are not registered on the national file of payment incidents!
Step 3 – What security can your bank require?
In the credit acceptance process, your banker may, in negotiations, require:
- Request the subscription of a borrower insurance .
- Condition your agreement to the mortgage of the property to be financed.
- Impose a lien guarantee authorizing, as a reimbursement, the seizure of your property by judicial means.
- Engage a third party to become your surety – preferably financial institutions specializing in bonding to an individual, such as for example the Housing Credit.
If this process is adopted by all lending institutions, some may add their own special intentions.
Fortunately, a broker specializing in real estate credit is made to know the specifics of each of its partners – especially in terms of its acceptance criteria.