THE 10 STEPS FOR YOUR REAL ESTATE FINANCING
You have found the house of your dreams, and you are thinking of getting a mortgage? It is therefore essential for you to study the different stages of real estate financing.
First of all, you should know that a home loan is a term commonly used by home buyers to finance real estate. A home loan is usually one of the cheapest ways to finance a home. However, it can also be one of the most daunting processes for a beginner or someone who has never had to finance real estate in their life.
Even when seeking a home investment loan, it’s crucial to understand the importance of preparation. The procedure may seem complex, as it requires a lot of patience, but it is actually quite accessible and simple when you take a closer look.
Don’t wait any longer, follow the guide to find out the 10 steps constituting the process of your real estate financing.
The signing of the sales agreement
If you find your dream home, you must make a purchase offer to the seller. Following this, if your purchase proposal is approved, you will sign a sales agreement with the seller. It is an official document that constitutes a mutual agreement and commitment between the seller and the buyer.
It defines a suspensive clause in which you undertake to obtain credit financing within a certain period of time after having concluded an agreement with the seller. If you are unable to obtain the loan, you can terminate this agreement by writing a registered letter with the notice of refusal of the loan. This period is generally set at 45 days after the signing of the compromise.
Finding the best mortgage
First of all, it is very important to compare the different financial institutions! Indeed, nothing beats competition from banks to lower the cost of loans. You will find the best loan conditions by approaching several establishments and comparing them. Brokers can help you in this process, and allow you to choose the most advantageous loan for you according to your situation, in terms of rate, repayment period…
Preparing the loan file
After choosing one of the financing options, you will need to build your file. In other words, you must provide the bank with all the supporting documents, and all the elements necessary to obtain a loan: proof of income, tax declarations, professional situation, sales agreement…
You can be accompanied by an expert to assist you in all of these steps.
The agreement in principle
The credit institution will give you an agreement in principle when all the supporting documents have been collected and examined. Note that the continuation of your real estate acquisition process will be impossible without this agreement.
Opening a bank account at the bank
Generally speaking, the bank you have chosen will ask you to create an account and deposit all or part of your income with them.
However, keep in mind that you have the option of refusing. Note that this step is not a legal obligation, although it is quite common.
The official real estate financing offer
The official loan agreement will contain all the details of your loan offer. The credit institution is responsible for producing this document. Make sure it is correct and review the points in it. In the event of a disagreement or dispute with the lending institution, the terms of the contract will serve as a guide to make a decision between you.
The reflection period
Know that you have a minimum and irreversible period of 10 days after signing the loan agreement to terminate it. This deadline being fixed, some buyers in a hurry may try to speed up the process by backdating, for example, their loan offer. However, if a mistake is made, the loans department may have to redo the operation, which can make it take even longer.
The acceptance of the offer
After reflection, if you accept the loan proposal, you are required to inform your bank by returning the signed offer by registered mail to confirm your acceptance. This is an important step that comes directly before the establishment of the deed of sale.
The signing of the deed of sale
The purchase and sale of real estate must be the subject of a deed of sale registered and certified by a notary. A few days after this visit to the notary, you will receive your title deed. You are now the legal and permanent owner of your home.
Reimbursement of the mortgage
The first monthly payment of your real estate financing will generally be returned to you one month after the signing of the deed of sale. You will then have the option of repaying your loan each month until the end of the term, or making an early repayment. You may be subject to penalties if you repay your loan early, which you will have agreed with your lender.