Buying a house is a project that requires preparation, both administratively and financially. It is therefore important to get off to a good start to maximize the chances of obtaining financing for a real estate purchase.
Each situation is unique, each situation is different, so it is impossible to quickly find an answer to a simple question, that of knowing how much one can borrow. And yet, a simple calculation makes it possible to answer it, it is the capacity of indebtedness. It is a question of calculating the monthly amount that a borrower will be able to devote to the repayment of his credits, in other words to define the amount of the maximum monthly payment.
For this, you need information that everyone generally knows by heart, it is the amount of the salary. It is necessary to calculate 33% of the amount of net household income, this simply corresponds to the maximum debt ratio that a credit institution can authorize. For income of 2000 euros net, the maximum amount of the monthly payment that can be devoted to the repayment of a mortgage will be 660 euros.
If the financial calculation seems simple and quick to perform with a calculator, the equation can quickly become complicated if the borrower has, for example, loans in the process of being repaid. It will therefore be necessary to subtract the amount of these credits to calculate the amount that can be devoted to the repayment of a mortgage. If we take our example of the salary of 2000 € with which we can borrow 660 € per month but this household is already repaying 1 car loan at 150 € per month and a personal loan at 80 € per month, there are only 430 euros left for borrow as part of a home loan.
It is therefore essential to carry out a mortgage loan simulation, this makes it possible to obtain in a few minutes a first estimate of the real amount that one can borrow, coupled with a selection of offers from the best positioned credit institutions. in the housing loan market today.
If the real estate purchase project concerns an old house to be renovated, it is important when calculating the borrowing capacity to define the amount of this work, in order to avoid possible difficulties later in financing this part. It is possible to integrate the works into the amount of the mortgage, totally or partially, otherwise different work credit solutions are possible. This reflection at the start of the project makes it possible to propose a financing plan and above all to be aware of the financial commitment that this implies. A well-prepared project is a well-funded project.
