Mortgage loan: 5 tips for your first purchase!

A first real estate purchase, we will not lie, is a source of stress! Which way to take the project? How to convince the bank? Do you want to know everything to get started? Take a tour at the National Real Estate Show, from October 12 to 14, in Paris. Otherwise follow the guide…

Obviously, to get started and buy her 1 housing, it is better to wait until you have regular and stable income. Remember, too, that buying real estate highlights a broader issue which is your overall life plan. The bank therefore analyzes everything: your CV, your income, your expenses, the rest to live, your career development possibilities, the location of the property … Follow the advice of Alesandra Allonan, spokesperson for Vousfinancer and Nelson Roldin, director of partnerships at Best Lenders.

 

Prepare your project well

money loan

How much can I borrow? This is the 1st question to ask yourself. By clearly defining your budget, you will know what to aim for, and therefore what you can visit. “First-time buyers always think that everything is negotiable. Not necessarily… They often visit goods outside the budget, therefore out of their reach, which is a waste of time! The rule is (almost) the same for everyone: the amount of the loan must not exceed one third of your net income (all credits combined) “, explains Nelson Roldin, director of partnerships at Best Lenders. So go to a broker to assess your overall borrowing capacity. Alesandra Allonan, spokesperson for Lite Lending adds: “The rates have dropped enormously; future buyers are not always aware of the importance of the amount they can borrow! It is hard to believe, but the rates vary very strongly from one bank to another, so you have to compete for several proposals.

 

Adapt your debt capacity to your needs

debt capacity to your needs

When you buy you don’t necessarily want to stop living! So talk to your credit broker: he will take this into consideration and will suggest solutions, such as extending the term of the loan to lower your monthly payment or setting up options, such as modulation, which will allow you to change your monthly payment, as you wish, according to the evolution of your income. “The more we borrow over long periods, the larger the sum,” recalls Alesandra Allonan, however. The flip side is that the rate is higher, so credit costs more. But first-time buyers often have an interest in extending the term of the loan to complete their financing and buy the space they need. Anyway, few people go after their loan: the average duration of credit conservation is 9 years!

 

Keeping your account must be beyond reproach

mortgage loans

“Banks today want to lend,” says Nelson Roldin. The interest rate level is very low, but there is little profitability, so they are very careful about the risks they take, they do not want files that end in litigation. They are very attentive to the ability of candidates to manage a budget and honor their monthly payments. ”To be credible, therefore, provide the bank with solid account statements. And avoid being overdrafted three to six months before you apply for a loan. Do you have consumer loans? Pay them back! If the bank sees in you a pierced basket, it is ruined, it will not follow you, even if you make a good living. So limit spending, control your budget and check your accounts regularly.

 

Have a personal contribution

personal contribution

To put the odds on your side, you must put on the table part of your savings, at least 10% at least of the amount you want to borrow, enough to pay the fees of notary, file and guarantee. And this is important because what does the bank want to know? If you are able to manage a budget! “The contribution also has another utility,” specifies Nelson Roldin. It protects the bank from hazards. If you make a contribution and the market turns out to be less flourishing, and you are also led to resell, you may fall back on your feet. If the bank financed the entire purchase, no chance. Obviously, good news: if you are young, 25 to 35 years old and, in addition, your CV or your job suggests that your income will increase rapidly, the banks will be understanding. They know that you have not had the time to save money and your future income puts you in the shelter. However, they will not understand that you could not manage a budget and save if you are 40 and over.

 

Buy a quality property

property loans

The real estate market is a two-speed market, with areas where prices continue to rise, others where they stagnate, and still others where they fall. If you set your sights on an eccentric property, underserved, in a small town where prices tend to fall and that in addition your budget is ric rac, the bank will not follow you, believing that the risk is too great. And for good reason: if you had to resell the property, you could not reimburse it. And beware, the bank is watching everything. The very fact of having to buy a car so that you can join this eccentric property can lead her to not finance you if she considers that your budget is tight! Sometimes it is better to buy a little smaller but a good quality that will not lose value!

Non-bank loans – advice from our experts

The end of the year is the time to summarize and define plans for the next 12 months. Starbuck took off in February this year, in which, apart from publishing rankings and making it possible to apply for payday loans online, we also published a lot of loan-related content.

We kept you updated on all promotions organized by payday loans companies

We also gave advice, wrote about news, trends, and statistics in the quick loan industry. Within a few months, Starbuck became the largest and the most visited industry portal in Poland. In response to your high interest and comments, we launched a chat where our expert answers your questions on weekdays.

The response exceeded our expectations, for which we thank you very much. We end the year 2020 as the most visited loan website, but we’re not going to stop there. In 2019 you can expect a lot of content, analysis of loan offers, promotion of the best payday loans, we will also warn you of those trying to stretch customers. And what happened in the online loans industry?

2020 in the online loans industry

2020 was a breakthrough year for the industry. Both customers and the companies themselves providing loans without BIK have reason to be satisfied. The number of loans granted via the Internet more than doubled, exceeding the barrier of USD 5 billion.

This is not only the effect of the growing needs of Poles but above all a much better offer. While a year ago, free payday loans could be counted on one hand, in 2020 there were several such offers. We hope that in 2019 the first payday fee for USD 0 will be standard.

Companies have also improved the process of granting loans

payday loans

reducing the waiting time for cash (often less than 5 minutes), simplifying the application form. All changes have largely been caused by growing competition.

The year 2020 is also the appearance of many new companies on the market, but also the opening of new payday brands by existing companies. Some online payday loan companies have also decided to enter the online installment loans market.

Establishment of the Association of Loan Companies

Establishment of the Association of Loan Companies

It is noteworthy that in 2020 ZFP (Association of Loan Companies) was also established, which was founded before industry leaders. The Association works for the online loans industry, oversees the process of adopting the Consumer Credit Act, but also works on creating a Register of Loan Companies, where companies that meet the required criteria and operate according to the Code of Good Practice for Loan Companies will find their place.

2020 was a successful year for the industry and consumers, in 2019 we wish clients and lending companies that the introduced regulations are beneficial for both parties and that the market develops at least at the same pace as in 2020.

Artisan credit buy-back: how does it work?

The repurchase of credit is a financing solution allowing the borrower to set up a new project, or quite simply to rebalance his budget. If such a financial transaction is relatively common for individuals, how is it structured for a professional, and more particularly for a craftsman? We will tell you all about the repurchase of artisanal credit and the documents to attach to your file!

The repurchase of credit in brief

The repurchase of credit in brief

Whether it’s an individual or a company, buying back credit is based on the same principle. Otherwise called credit consolidation or debt restructuring, credit repurchase is a financing operation during which the bank merges several loans (two minimum). There remains only one loan, at unique rates and monthly payments. The repayment of this loan is made over a longer period, which allows the professional – the craftsman, in this case – to reduce his debt ratio. He can then put his personal finances afloat or, potentially, consider a new credit which will be grafted on the redemption.

Note: what type of credit grouping can the bank offer?

A bank will offer you either a buyout of consumer credit (it only concerns consumer loans), or a buyout of mortgage (it concerns consumer credit and mortgage at the same time). The solution is therefore global, but you still have to be eligible!

Artisans: the repurchase of credit subject to strict conditions

Artisans: the repurchase of credit subject to strict conditions

As a craftsman, you no doubt know that establishing good relationships with the bank is not always easy, especially when it comes to grouping loans. In such a case, this financial solution is not necessarily viewed favorably by credit institutions. And for good reason! The latter often impose long-term financial stability. However, the craftsmen belong to a socio-professional category for which the returns of money are uncertain, like a merchant or even a liberal professional. Result of the races, the conditions of eligibility for the repurchase of artisanal credit are stricter than for a  borrower.

In addition, and this is probably what must be remembered, a debt restructuring for a craftsman will exclusively concern loans for personal use. No professional credit will be accepted by the bank. Similarly, additional cash (new loan) can only be used for personal use. In no case may it serves as a contribution to the benefit of the company.

To hope to see his debts bought back from the bank, a craftsman must be able to justify:

  • a minimum of 3 years of service in his activity at the time of the buyout request;
  • an increase or stability in turnover over the past 3 years (company balance sheets);
  • equity, that is to say everything the company owns except its debts (proof of the financial strength of a company).

An artisan credit repurchase file must also include, among other things:

  • the extract of the company (to justify registration in the commercial register and prove the legal existence of the company);
  • a photocopy of the identity card of the entrepreneur;
  • a document presenting the company;
  • amortization tables for consumer loans and outstanding home loans;
  • a photocopy of the applicant’s rental lease or title deed;
  • proof of address.

Artisan credit buy-back: how to get the best rate?

Artisan credit buy-back: how to get the best rate?

As with conventional credit, a buyout of artisanal credit can be obtained at advantageous rates, as long as the entrepreneur uses strategy. The most convincing method remains the use of simulation tools. You can find them on almost every online bank. By carrying out a simulation, the craftsman will have a better idea of ​​the cost of a potential regrouping, as well as of the new monthly payments which would be his. And above all, he can compare the offers between them by observing the rate charged by each bank.

Note: at what rate to trust?

Always at TAEG! The annual percentage rate is an essential element of comparison. It includes all the costs of buying back credit (nominal rate, cost of any insurance, etc.) and represents its total cost.Any borrower, including a craftsperson, can also request the services of a credit repurchase broker. Not only can this professional help the craftsmen to tie up their file well, but in addition, he can make them benefit from preferential rates since he is in direct contact with banks and credit organizations.

Finally, the repayment tenure is an element not to be overlooked. The more the craftsman pays off his debt restructuring over a long period, the more this solution will cost him in the end. Why? Simply because the consolidation rate will be higher.

For a tailor-made financing solution, have the reflex! For a buyout of artisanal credit or any other loan formula, an evaluation of your repayment capacity is systematically carried out. And since we only distribute one type of loan – the personal loan at a fixed rate – you have the assurance of constant monthly payments for the duration of your loan. Go to the top of the page for a simulation!

Renegotiating home loans: Even better deals!

Month after month rates are breaking records. It is all the most incredible that it is now every month a historic low!

In October 2014 we had an average fixed rate for all durations (10, 15, 20 and 25 years) at 2.29%. In February 2015 it was 1.99%! It’s a drop of over 13% in just 5 months. Also, if you have a real estate debt, you must imperatively take advantage of this opportunity to renegotiate it.

Your financial interest is obvious

financial loans

If in 2010 you borrowed over 20 years at 3.60% with inflation at 1.70%, your net rate at the time was 1.90%. Today, with lasting inflation at 0.5%, your net rate now stands at 3.10%! It has become a considerable gap, the cost of which, month after month, weakens your purchasing power, impacts your standard of living and limits your savings capacity.
With a new negotiated rate of 2.10%, the monthly payment of a loan of $ 200,000 goes from $ 1,170 to $ 1,020. This is a saving of $ 150 per month!

As part of this renegotiation you will have the opportunity to take out a new loan insurance whose cost will be lower for equivalent guarantees.

In addition, contrary to popular belief, recent credits are those whose renegotiation brings the maximum financial advantage. Indeed, the duration to run remains long and you should know that at the end of the first 4 years of a credit over 20 years (20% of the duration) it is still 90% of the capital which remains due.

 

Renegotiating your credit is simple…

renegotiate credit

First you need to contact your banker to find out their position. If it is positive and if you agree, we recommend that you compare its offer with that of a broker.

At Good Lenders credits, network ethics prohibits “stripping Pierre to dress Paul”. With your agreement, we will negotiate as a priority for you with your bank, which is our partner. In the vast majority of cases we conduct a winning intermediation for our borrowing client and for our banking partner. The operation is quick and without financial risk since the study of financing is free. Fees are invoiced exclusively if the transaction is carried out.

Planning and organizing the renegotiation of your mortgage is an act of good management.

Use credit card for car rental, hotel booking & flights.

Credit cards have become an essential means of payment for stays abroad. Regardless of whether you rent a car, book a hotel or fly, credit cards enjoy the highest level of acceptance in all possible countries.

Credit cards are becoming increasingly important abroad

Credit cards are becoming increasingly important abroad

If you go on holiday outside of Germany or go on a business trip abroad, a credit card offers a lot of advantages. Because although cash is still the preferred method of payment in Germany, a credit card is essential for many payment methods in other countries.

Whether it is a car from a car rental company or a hotel booking – the credit card is a flexible means of payment that has long become the norm in many countries.

Sweden, for example, has already abolished cash, as has India. As the largest democracy in the world, India has become the fastest growing economy in the world after some initial difficulties in converting to cashless payments. And if you are traveling to the USA, for example, you should definitely have a credit card up your sleeve, because in many cases other payment methods are simply not accepted there.

The use of credit cards is generally not associated with any costs in the euro area. And outside of the euro area, it is often the better means of payment. Because if you withdraw cash from your ATM or EC card outside of Europe at the ATM, you will have to expect fees from most banks. When withdrawing cash with a credit card, on the other hand, various banks generally waive fees.

Hotel booking

Hotel booking

Many hotel bookings in Germany and abroad can only be made with a credit card. It represents a guarantee for the hotel operator in the event that a guest does not arrive or does not cancel the reservation in time.

Some hotels also offer payment in advance, but this is an exception. After booking the hotel room by credit card, it is often possible to pay for the stay with an Cream Bank card or in cash.

Car rental

Car rental

In many cases, a credit card is mandatory to book a car through a car rental company. Because the rental car companies use the card as a safe means of payment, which protects them from payment defaults by depositing a deposit. The deposit is blocked on the card until the rented vehicle is returned.

Tip: Therefore, pay attention to the amount of the deposit and make sure that your credit card account is sufficiently covered – because you cannot have the amount of the deposit for the duration of the rental car booking.

Booking flights

Booking flights

Credit cards are also becoming increasingly important as a means of payment for booking Fügen, since most users now order their flight tickets online.

If you do not have a credit card, you can in many cases make an online booking using the card of a friend or family member. In advance, however, you should inform yourself about the conditions of the respective country of departure. For security reasons, the cardholder must also be a fellow traveler in some countries or have the same surname.

Which credit card is best for traveling abroad?

Which credit card is best for traveling abroad?

In general, all types of credit cards are suitable for trips abroad. Prepaid credit cards from large providers such as American Express, Visa or Mastercard can also be used in many cases on vacation. The prepaid cards technically present themselves as “real” credit cards, which is why money can also be blocked for booking hotels or rental cars.

Before you start your trip, make sure that you have sufficient card cover for the rental deposit and other expenses.

If you are going on a longer trip abroad, our tip is: It is best to use two valid means of payment in combination with each other, e.g. a credit card and a bank card, both of which are valid in the country of travel – so you are always on the safe side when booking and paying Page.