The news in March is marked by the ” real estate spring “, a period when a large number of borrowers start their acquisition project in order to move in before September. To help you better understand your steps, here are the ten steps to know to subscribe a mortgage.
1. You sign the sales agreement
After choosing the property that interests you, you must agree with the seller on its selling price. This condition fulfilled, you can sign the sales agreement.
This preliminary contract marks a double commitment. Yours first: you agree to buy the property under the conditions defined in the document. The seller’s next. The latter agrees to sell you the property at a fixed price.
The signed sales agreement, you have a period of reflection of seven days to retract.
The sales agreement also includes a suspensive clause, the time you can find your financing from a bank. The time allowed is usually 45 days from the signing of the compromise.
If you have not obtained the agreement of the bank or if this deadline is not respected, the compromise can be canceled. Warning: you are obliged to provide the seller with bank refusal notifications in the event of a negative response regarding your request for financing. The notice issued by the bank must be sent by registered mail with acknowledgment of receipt.
Last point: if you notified of a refusal but you only notify the seller after the 45 days, or if you are unable to honor the deed (final signature at notary) on the date provided for in the Special Agreement, the seller may be able to ask you to pay the fixed compensation, which is generally 10% of the amount of the sale.
2. Looking for financing
The signed sales agreement, you can proceed to the search for financing. For your convenience, do not hesitate to call a broker. The latter will put you in touch with several lending institutions.
In addition to benefiting from the best offers, you will have no expenses to pay us, and for good reason: we are paid by the banks.
3. You mount your file
The broker will submit several financing offers. Once you have selected one, you can mount your file. In particular, you must provide evidence of your income, savings capacity and professional stability.
4. The bank must agree
You depend on the decision of the bank: without its agreement in principle, your real estate project falls into the water.
5. The bank domiciliation
By accepting your credit application, the bank is likely to require a bank domiciliation of your income. In other words, you will have to open an account at home.
6. You receive the official loan offer
The bank that agrees to finance you sends you an official loan offer. This obligatory document is sent to you by mail as well as to the people who are sureties. The offer is valid for 30 days from receipt.
The terms of the loan are mentioned: identity of the parties (bank, borrower, possibly guarantor), object of the loan, its amount, total cost of the credit, total effective rate, nature of the rate (fixed or variable), schedule of monthly payments etc.
7. A new cooling off period is granted
Upon receipt of the official loan offer, you have a minimum period of reflection of ten days.
8. You return the offer
As of the 11th day, if you accept the terms of the offer, you must return it by mail to the lending institution, signed and dated.
If you refuse the loan offer, no fee will be charged.
9. You sign the bill of sale
The signing of the deed of sale by the buyer and the seller is a condition sine qua non to become owner of the property. The act, to be authentic, must be registered by a notary.
The deed of sale must include a certain amount of information, including the identities of the seller and the buyer, the date of the previous deed of sale, the address of the property, the name of the former owner, a presentation of the well and the terms of the sale (price, subscription or not of a mortgage).
10. You start repaying your loan
You pay the first installment of your mortgage one month after signing the deed of sale.
A real estate acquisition commits you over several years. So take care to study well and compare offers.
For that, do not hesitate to use our services. Our advisors act as intermediaries between banks and advisers. We take care of all your steps and negotiate for you the best financing conditions.