Given the colossal sums at stake, obtaining a mortgage is an obstacle course. You have to show yourself in your best light and know how to negotiate well with your bank to get your chances. Here are some tips.
Obtaining a home loan does not happen by chance. Careful preparation is essential upstream to avoid being refused by your banker. The work begins a long time in advance by collecting useful information around the mortgage. No question of considering the process without having mastered at your fingertips the elements related to the conditions or the rates practiced by this type of loan. This preparation will help you during the negotiations. By having a maximum of data, you will appear less naive in front of your banker and will inspire him more confidence.
As such, choose the right time for the appointment with him. You have to look your best to put it in your pocket. After these details, it's time to focus on your borrower profile. No one is able to get a home loan without very good financial health. It is crucial to avoid bank overdrafts, payment incidents and above all, to have a debt ratio of less than 33%. Either way, your banker will sift through your bank statements, so it's hard to hide missteps.
The personal contribution corresponds to the sum that you will pay out of your pocket as part of this credit and which will be used in particular to pay notary fees or moving costs. In principle, it amounts to 10% of the total cost of credit. The greater this financial contribution, the more the bank will be inclined to grant the loan. In addition, it will grant an attractive interest rate.
You should know that this personal contribution constitutes a guarantee for the financial institution that the borrower is able to manage his budget well by creating savings. This shows that he can fully repay his loan since he has the ability to put money aside. Unless you have sold a property, received an inheritance or borrowed money from a relative, this contribution is thus constituted through savings products such as life insurance, booklet A, CEL or PEL.
The comparison of offers is an approach that also applies to the universe of credits. The objective is to put the different banks in competition. To properly negotiate your loan, promote the offers of other financial institutions.
After having solicited different banking organizations and provided with a proposal from them, go around the different banks to try to negotiate the best offer:some will undoubtedly grant you additional advantages. And if you don't have time to do this competition yourself, use a broker who will do the negotiations for you and who can compare the best loans. He will provide relevant advice to help you obtain your loan with ease.
