Do not panic, several solutions are available to you to help you make your real estate purchase a reality if your bank refuses to follow you. How to find another mortgage to buy the home of your dreams? Here are our tips!
The bank refuses your loan request ? Don’t let this get you down and adopt a more positive dynamic straight away because, even if the bank does not have to justify a loan refusal , you can find out which aspects of the file were blocking. Is it the debt ratio? The level of contribution? A bank overdraft? ]
Indeed, for some banks, the bank overdraft is a prohibitive element for obtaining a mortgage. But a mutual bank agreed to follow me for my real estate project” , notes Mélanie, happy owner of an apartment in the Paris region. “The first bank refusal is always a little stressful, especially since we have a time limit written into the compromise to find a loan offer. But in the end everything went well”
The condition precedent for obtaining a mortgage
If the buyer does not obtain financing, the sale cannot be completed.
Bank overdraft, and more broadly account management, implies the presence of agios, which underlines poor management of your accounts to your advisor. But it is not the only reason.
A debt ratio exceeding 33% is another, as is the level of savings, the rest to live after mortgage, the level of contribution, professional stability or the health of the
Professional stability is a key element in taking out a home loan. The bank will indeed use your income to establish your borrowing capacity according to a threshold that it cannot necessarily exceed: 33% of your income. But it doesn’t stop at your debt ratio or the amount of your salary.
What also interests the banker is your type of employment contract. Are you on a permanent contract? Are you a veteran of the company? Has your trial period been validated?. But if you are in this situation, getting a loan can be more complicated, especially if you are borrowing on your own.
The level of contribution or the duration of the mortgage
If some banks accept financing without contribution , also known as 110% loans, most require a contribution of 10% to 20% minimum of the cost of acquisition. Amount that will cover the costs associated with the purchase, in particular notary fees . Note that they reach between 7 and 8% of the sale price in the old against 2 to 3% in the new .
The wear rate
The usury rate is the maximum rate to which banks must refer when financing individuals. That is to say that the real estate rate they offer you is framed. And all the costs related to the credit are integrated into the total cost of the mortgage, which must not exceed the famous usury rate.
The purpose of setting this rate is to protect borrowers. However, in certain cases, and due to very low borrowing rates, it may be out of the question for certain borrower profiles . The wear rate is defined each quarter by the Banque de France.
Thus, the borrower’s state of health can be a blocking factor in taking out a mortgage. And this, despite the Aeras agreement which aims to access credit for risk profiles. In some cases, the cost of mortgage insurance is so high (therefore with significant risks for the bank) that the APR (annual percentage rate of charge) exceeds the usury rate. In this case, the bank cannot finance the individual.
Choose delegated borrower insurance
Borrowers today have the option of changing their borrower insurance and choosing the cheapest offer. They can do it:
before taking out the mortgage (and the bank cannot go back on the proposed mortgage rate),
They must, however, comply with a few rules, in particular the condition of equivalence of guarantees (that is to say that the chosen contract must present the same level of guarantees as the bank’s contract and the notice period: 15 days for the Hamon law and two months for the Bourquin law).