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
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
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
“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
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
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!