If banks lend heavily, they are very attentive to the quality of the files – because of both fears of falling prices and economic conditions – and are studying the real estate project as such (situation of the well, work or not …) as the financial and professional situation of the borrower.
It is therefore very important to submit a good file to the bank in order to put all the chances on its side to obtain financing, but also to have the opportunity to negotiate the rate of its credit.
1) Avoid bank overdrafts, and present own account statements
The bank will ask for the last 3 statements of account of the borrower that it will peel in detail: transfer, purchases, automatic debits. So avoid compulsive shopping and bank overdrafts that will show a financial profile rather than angry cicada! Better to reverse, if possible, show its ability to save small amounts each month by setting up an automatic transfer a few months before …
2) Refund, if possible, current consumer credit
The bank will ask if there are outstanding credits (auto, revolving …), and the borrower is obliged to declare them. It will take this into account when calculating the credit it can grant so as not to exceed 33% of indebtedness. If the credit ends in 6 months, no problem, but otherwise, it is better to try to repay early, the borrowing capacity will be much larger and the file of better quality.
3) Have a contribution, 10% if possible
Today, the majority of banks request a contribution of 10% of the amount of the property to cover at least the notary fees and guarantee. This is indeed advised because it allows the borrower how to depreciate the value of the property from the beginning of the repayment of the credit, not only the costs … In some banks, we can still borrow without input, especially if we are young, because banks are more tolerant. But having a contribution also makes it possible to have a better rate. 10% contribution at least can achieve in some banks a rate reduction of 0.20 point
4) Have a stable job situation, or two is even better
This seems obvious, but it is very important for the banks, to the point that some even look at the financial health of the employer. In addition, having significant income can also provide better terms. In some banks, the difference in interest rates between two profiles with different incomes can reach 0.40 points.
The most sought after profiles: couples on permanent contracts, with prospects for change, even if they are at the beginning of their professional life. Banks are looking for a long-term relationship with their customers …
5) Have savings, take the multi-risk housing …
Other elements can make it possible to value a file: if you already have savings products that you will be able to repatriate in the new bank or if you take home insurance in the bank, this one will be able to grant you rate reductions (0.10 point) or offer you the file fees