Obtaining a low rate is the ultimate goal of all future borrowers wishing to take out a mortgage. Fortunately, there are tips for getting the most attractive offer for your home loan. Here are five
A healthy financial situation conditions access to a mortgage and an attractive interest rate. When studying your file, the bank will screen your borrowing capacity. In particular, it will analyze your bank statements over several months, even if only the statements of the last three months are generally requested. It is strongly advised to avoid payment incidents, excessive spending or overdrafts. At the same time, you must be able to certify that you can ensure repayment of monthly payments. The rule imposes a debt ratio of less than 33%. Clearly, the cost of monthly payments must not exceed one third of your cash flow. Of course, if you have high incomes, the bank can tolerate a debt ratio higher than this 33%.
The personal contribution is another factor that determines the negotiation of the loan rate. It is often said that it is not really compulsory and that there are banks which can grant loans in the absence of a financial contribution. In reality, this contribution will be crucial. Already, it demonstrates to the bank that you have managed to save well. Then, it proves your level of involvement in this project. In principle, this financial contribution will be used to cover notary fees, guarantee fees and file fees. It represents about 10% of the cost of buying the house.
When you take out a mortgage, you tend to want to extend the repayment period as long as possible, in order to benefit from lower monthly payments. Certainly, in the short term, it is a good technique. But in the long term, not only will the credit cost you more (more application fees and insurance to pay), but in addition, the bank will not grant you an attractive rate. Indeed, the risks of borrowing money over 20 years are much higher than over 10 years.
We can never say it enough. Putting the banks in competition with each other is the most effective trick for aspiring to credit at an attractive rate. Not all financial institutions offer the same conditions and the same rates. To win more customers, they compete fiercely. Take advantage of this competition to find the best loan. Do not hesitate to go around several establishments to get your hands on an attractive offer or even easier, use a mortgage loan comparator.
In case you do not have time to go from bank to bank as part of this comparison of offers, seek the services of a real estate broker who will do the work for you. Playing the role of intermediary, the latter will use his skills and expertise to bring competition between lending organizations and find you an attractive credit rate.
