The necessary supporting documents for a mortgage loan

To hope for a positive response from the banks, you need to build a solid case, whether you’re doing it alone or through a broker.

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This file is made up of several supporting documents of which you are revealed the essential.

A detailed explanation of your project

This is an explanatory note in which you present your project. Indeed, the important thing for banks is that you are a serious person, with ambition, but especially with a specific plan.

With a home loan, you must present the land or building on which you intend to invest.

It’s even better if you insert a photo of the property in the folder. You then explain what you intend to do, improvement, change of destination, work that requires funding. For the property that will serve as collateral, you must bring proof of ownership, possibly with the mortgages that are already applied.

If you go through a broker , which is an excellent choice, he can help you better present your project. Remember to send him the list of establishments where you have already filed your file to save time.

The credentials

It’s basic, you must provide all the pieces proving your identity. This includes a copy of your identity card or valid passport. Accompany this copy of a proof of address and all the pieces showing your personal situation, marriage, number of children. A copy of the family record book will do the trick.

The proof of your financial statement

Loan agencies will want to look into your financial health before granting you your mortgage loan.

It is important to look after your image since you will have to provide the statement of your account of the previous 3 months, but also the statement of wages of the last three months. The bank will then continue its investigation to find out if you are not banked or prohibited. If you have credits in progress, you must mention them in your file, with details on the remaining due and the monthly payments that engage you. This will determine your debt. Do not forget to do a mortgage calculation to see if it’s possible or not.

Evaluating Your Budget and Borrowing Capacity – Home Loan Tips

The lifestyle of the future borrower is also considered to determine his “remainder to live” once he has paid the charges and monthly payments of the loan .

What is a real estate mortgage?

The lenders are particularly attentive to the debt ratio, all credits combined not to exceed 33% of revenues.

The amount of a mortgage loan depends primarily on the future buyer’s income.

The resources taken into account correspond to the average monthly net income (annual net income divided by 12) of a definite nature such as a salary, a thirteenth month, or even a benefit in kind. Profit or participation bonuses are not automatically considered because of their variable nature. Conversely, land revenue net of charges is a resource for credit institutions. Alimony, some income from financial products or family allowances can sometimes enter into the borrower’s income base. The expenses to be taken into account in the debt correspond to all outstanding loans (real estate, consumption, “revolving” or renewable, facilities of payments in several times, etc.) and the possible alimony payments.

In addition to net income, personal contribution plays an important role in determining the amount the borrower can claim.

Opens the doors of approximately 30 banks and credit institutions from which it can begin negotiations .

1 . Borrowers should be aware of the risks associated with a home loan in order to know if such a transaction suits them and ensure that they understand the obligations related to this transaction, such as those related to the repayment of a mortgage and debt born of the granting of such a loan.

2 . This document does not constitute an offer or solicitation and should not be construed as investment advice. It does not replace a detailed study of the situation of a potential borrower to accompany it in its reflection and in the implementation of its real estate project.

Fixed or Adjustable Rate – Home Loan Advice

While mortgage loans granted today by banks are based on 20 years around 3.10% for fixed and 2.30% for variable rate loans, what to choose 1 ?

pret taux fixe ou variable

The rate is an important element in a mortgage.

It is essential to understand the mechanism of a fixed rate and variable rate loan offer, as well as their mutual advantages and disadvantages under pain of obtaining a result contrary to its objectives.

The fixed rate is an interest rate indexed on long-term rates, which by nature are higher than the revisable rates, which are fixed on short-term rate indices corresponding to the price at which the banks lend themselves money to short term.

Unlike a variable rate mortgage, the fixed rate is determined at the signing of the contract and does not change during the entire loan period, except renegotiation.

In the case of a rate-adjustable real estate loan, the borrower sees its rate change throughout the term of the credit. Consequently, this impacts either positively or negatively the amount of its monthly payments. These loans are often accompanied by rate hike controls to secure the floating rate credit in a monthly ceiling known in advance.

We tell you about other important items such as the rate as the ability to adjust the amount of your monthly payments over the life of the loan 2 ; to convert a variable rate into a fixed rate or to repay in advance.

Among the advantages and disadvantages:

1 . Give as an illustration only. This document does not constitute an offer or solicitation and should not be construed as investment advice. It does not replace a detailed study of the situation of a potential borrower to accompany it in its reflection and in the implementation of its real estate project.

2 . Borrowers should be aware of the risks associated with a home loan in order to know if such a transaction suits them and ensure that they understand the obligations related to this transaction, such as those related to the repayment of a mortgage and debt born of the granting of such a loan.

Confirmation of annual termination of loan insurance

Borrowers can rejoice.

Renegotiate your home loan insurance

After the parliamentarians, senators have just passed the bill establishing the right to change borrower insurance on each anniversary date of the contract. This is the time for everyone to review his and try to lower the rating by addressing the competition.

The interest of the measure for borrowers

From January 2018, anyone with a housing loan in the process of reimbursement may terminate the insurance that covers it and replace it without any possibility for the bank to oppose it.
The measure aims to finally free competition, and give purchasing power to the middle class owners. The only condition: find an alternative contract with the same guarantees as those mentioned in the information sheet of the bank at the time of contracting the loan.

This is a boon to borrowers because with low mortgage loan rates , the cost of insurance is almost as high as borrowing interest.

However, for the same profile, the disparities between the various institutions in terms of guarantees and tariffs can be considerable.

The differences are even more marked between the bank group contracts and the individualized formulas of alternative insurers or brokers specializing in mortgage loans.

For a couple of thirties taking a loan of 150,000 euros over 20 years at a nominal rate of 1.5%, the potential savings obtained through delegated insurance can reach 15,600 euros. For a senior who has borrowed the same amount over 12 years, the gain can amount to 9,900 euros.

The points to check in contract

If today, banks still hold nearly 90% of the insurance sector borrower , with the reform, they are likely to see 8 million holders of housing loan contract to compete. However, this product is very profitable to them, since on the 6 billion euros that weighs the market, the margins of the banks represent half. They may therefore be inclined to renegotiate the insurance rate to keep their customers.

For the latter, several points are to be verified, starting with the disability-disability guarantees. If they are compensators, periods of unemployment or parental leave are not covered, the assumption of monthly payments by the banks being limited to the loss of income.

Attention also to franchises and exclusions. The right to be forgotten especially allows the insured person, for example, to no longer declare an old cancerous pathology, avoiding the increase of his contribution.

A fast money loan for your project

Have a quick answer, this is the wish of the borrower who could have a need for urgent cash.

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In most cases, a quick loan comes in a reserve of money.

This is the revolving credit associated with a financing card, called a revolving credit. However, the borrower must be very careful because this type of credit generates a borrowing rate that is among the highest in the market. Also, by the term “fast money loan”, the borrower must understand that the quick response concerns the policy answer. It does not concern the actual payment of money on his account. For this one, it will have to wait at least 14 days.

Recommendations to follow to get an answer as soon as possible

It is essential to know that the law requires a 14-day withdrawal period for the borrower. Thus, during the signing of a loan agreement, the borrower has this period from the date of signature of the contract. In practice, he must use the withdrawal slip attached to the contract, filling it, dating it and signing it. However, it is still possible to shorten this period, via a special request. Also, ten days would be the minimum period of withdrawal. In any case, to make a quick money loan , you must follow the procedure. The borrower must begin by performing a simulation and completing his credit application online. If his application is accepted, he must print the contract and fill it out with the required supporting documents. Subsequently, he sends the file by post or deposit it at the agency of the financial institution of his choice.

How to have a fast money credit?

In fact, even if the borrower thinks he has a perfect profile, his file may still be rejected for various reasons. Indeed, a bank remains entirely sovereign in its decision and there is no guarantee of a positive answer, even if the file is considered to be solid. It should be known that the human factor plays in favor of the borrower. If he has maintained courteous relationships based on transparency for a long time, he will put more chances on his side, for the acceptance of his application for credit. Also, unemployment can be a frequent case of refusal. The salary and personal circumstances of the borrower will determine the amount and duration of the loan. If the borrower is unemployed, his claim is likely to be rejected. The same applies to a loan application with a fixed-term contract. If the borrower is unemployed, the possible solution would be to obtain a bond, to be solvent. He must have enough personal property to repay his debts. In the case of a CDD, he must make sure to have a promise of CDI or a deposit.

Ask for a quick loan when you are registered at the Bank or registered with the FICP

In the event that the borrower has already taken out a credit with an organization and has encountered repayment problems, it could be reported. It can be registered in the national file of credit refund incidents or FICP. If this is the case, the borrower will not be able to get a positive answer to his request. This is the same scenario if it is reported to the Central Unpaid Check File (FCC). To remedy this, the borrower must pay his debts. In this way, it may have from the agency or the source bank of the registration, a request for deletion of the file.

Depreciable property loan: the real estate loan

If you are applying for a home loan with a bank, it is very likely that it is for a depreciable loan.

What is a depreciable property loan?

This type of borrowing is simply the most commonly practiced by the acquirers: the borrowed capital is stretched over time, throughout the duration of the credit. Let’s take a closer look at what the depreciable mortgage is and what its benefits are.

Real estate loan depreciable: what are we talking about?

Schematically, there are two major types of loans to buy real estate. On the one hand, the credit settled all of a block at the end of the contract (what is called the loan “in fine”). On the other hand, the one that is repaid over time, slowly but surely: it is the depreciable mortgage.

“Amortizable” means that the principal borrowed initially is amortized according to the monthly installments paid to the lending institution until the full amount due is repaid. From the moment the funds are paid to you, you start to pay back a certain amount of money set in advance for a period that can range from (usually) 5 years to 25 years. Even more if affinities (loans over 30 years are no longer rare).

What are the monthly payments of the amortizable loan?

Unlike the “in-fine” credit, whose monthly payments concern only loan interest and insurance costs, the monthly payments of the depreciable property loan are made up of:

• part of the capital;
• Loan interest;
• The cost of borrower insurance.

The monthly payments are constant in most cases, and calculated according to your borrowing capacity. Unless your situation changes (professional change, sudden return of money, non-working time, accident of life …) or renegotiation of the credit rate, you repay the same amount from the first to the last month. What changes is the balance between capital and interest.

It is precisely the particularity of the depreciable property loan: the interest is calculated on the outstanding capital. As time passes, the share of capital is important. Then, as time goes by, interest decreases in favor of the amortization of capital. Which means one thing: in the early days, you repay a lot of interest (more than half of the monthly payment). It is only over the years that the priority is reversed.

For example, on a maturity of 1,000 euros, you repay 700 euros of interest and only 300 euros of capital. After fifteen years, the share of interest is lower (200 euros) and the share of higher capital (800 euros), etc. Until there is almost nothing but capital and almost no interest.

What are the advantages of the depreciable mortgage?

If you choose a fixed rate, you can take out a loan knowing exactly how much the transaction will cost you. This is the main advantage of the depreciable property loan: which says pre-defined amount, says identical monthly payments throughout the contract.

Of course, it is possible to opt for a variable rate rather than a fixed rate. Depending on the rate changes, your monthly payments and / or your borrowing period may go up or down. It can be a benefit … or a big risk!

Another advantage of the mortgage loan: your monthly payments are potentially flexible. They may have to vary to reflect the evolution of your financial situation, within the limits of ceilings set upstream. If you benefit from a salary increase, increasing your monthly payments will allow you to mechanically reduce your borrowing time – and vice versa. According to the banks, the modulation of monthly payments is allowed on the anniversary date of the mortgages … or at any time!

But beware: in the context of a mortgage repayable loan, too much borrowing time leads you to pay a lot of interest at the end of the race. It is therefore necessary to calculate carefully not to pay a too high monthly payment while limiting the overall duration of the credit.

The redemption of mortgage loans remains interesting

Real estate loans are still close to historical thresholds, the average for all durations.

For holders of a loan, the period is therefore conducive to renegotiation of loans and save several thousand dollars. euros.

Rates still favorable to borrowers

The number of real estate loan buybacks has exploded in previous years, as borrowers sought to take advantage of falling rates. Despite this, many owners still have an interest in renegotiating their debt or restructuring their loan. Indeed, after a slight rise initiated at the end of 2016, rates have started to fall again in 2017.

The trend should continue, at least during the first months of 2018, for all terms. The best profiles could even negotiate a rate of between 1.30 and 1.48% for a long-term loan (20 years) and only 0.91 to 1.00% for a loan over 10 years.

What are the conditions for a loan buyback?

A loan buy-back is only advantageous if the credit is still young, ideally in the first third of its existence, with a capital still outstanding. Less than 5 years from the deadline, it loses its appeal. To reduce the overall cost of financing, it is then preferable to change borrower insurance, the possible savings sometimes reaching tens of thousands of euros.

Another condition is a minimum of 100 basis points difference between the old and new interest rates. This difference offsets the costs generated by the transaction: early redemption fees, guarantee transfer fees, file fees, etc. It must therefore be verified that the potential gains are significantly higher than those incurred by the breach of the current contract.

A simpler and faster way to pay less is to renegotiate your loan with the current bank. If accepted, the formalities are limited to an amendment to the contract, but the proposed new rate may not be as attractive as that granted by a competing institution.

Reduce its loan term or monthly payment?

In the context of a loan purchase, the borrower can opt either for a reduction in the repayment period or for a reduction of his monthly payments, or both at the same time.

From a purely financial point of view, it is better to shorten the repayment term to the maximum without changing the monthly payments, or increasing them if it has the means. By paying back more quickly, the amount of interest and credit insurance premiums are reduced. But in case of financial difficulties, lower monthly payments is advisable, the difference on each payment to meet other needs.

In view of a further increase in rates, it is urgent to perform a simulation to find out whether or not it is still wise to embark on a real estate loan buyout .

Overview of the best ways to find an immediate loan

The express immediate loan formula does exist.

financing solution

Only some, for lack of information, track down day and night offers of fast credit without finding a satisfactory answer. This article summarizes the best ways to find an advantageous instant payday loan – Apply here…

Why an immediate loan?

In the face of the long waiting period for processing loan applications, banks prove to be ineffective when it comes to a financial emergency. With the immediate personal loan, it is possible to obtain funding on the day of his application. As a result, immediate lending is a little more realistic, as it can overcome current problems that require a quick fix. In addition, the immediate loan does not require many formalities. Subscription to this type of credit requires only brief information about the applicant and his contact information. This type of loan is, therefore, a real boon for people who have been banked. In most cases, the immediate loan is offered at an attractive rate and the repayment period can be up to 60 months, the cost of monthly payments is then lower.

Find an immediate loan: the online broker

Whether it is a credit brokerage platform or an accredited professional, the use of online brokerage can be beneficial to find an immediate loan in the most advantageous conditions. A true dealer with credit agencies, it allows you to benefit from credit at the best rate, without going through long formalities. Thanks to its mastery of the credit universe, the online broker can provide deeper knowledge of the offers on the market to allow the claimant to make more thoughtful decisions.

Online loan organizations

Direct competitors of physical agencies, online credit platforms can obtain financing in less than ten minutes by filling out a form quickly. In addition, individuals can lend the services of online comparators to target the best players in the market.

The crowdlending

This financing proposed by a natural person is for any type of project. In this form of microfinance, it is the lessor who defines the terms of the contract, namely the interest rate and the repayment terms of the loan. Sometimes, the crowdlender does not demand any interest from the borrower.

Good to know

Sending an offer proposal does not imply that the lender is obligated to accept and commit to it. In the context of a survey, it is quite normal to obtain brief information about the credit offered by the credit institution or the online platform without having to follow up on the proposals. Every consumer is the free will of his choice and he must not be constrained.

The loan between individuals: What you need to know

Do you want to borrow without going through the banking system? The loan between individuals is the solution that you need.

loan between individual

As a reliable alternative for financially troubled borrowers, bankless credit is reassuring through the use of a collaborative system that allows individuals, businesses and professional investors to benefit from an arrangement that fits both households to benefit from low-interest financing, as well as savers who want to profit from a profitable investment.

The loan between private individuals OTC

If your credit application has always been refused by the bank after several attempts, it is time for you to turn to the loan between individuals. And the simplest formula is the credit made over the counter, that is to say from one person to another and which takes place between relatives, friends or families. By cons, administrative formalities are expected for any loan exceeding 1500 euros which must have written evidence to avoid the risk of litigation and non-payment. It is a private deed that takes the form of a handwritten debt acknowledgment on free paper, where the borrower acknowledges the existence of the transaction and indicates the amount borrowed in figures and letters, before to date and sign the document. To create a maximum of evidence of the existence of the loan between individuals, it is better to go through a bank transfer or a previously photocopied check. For a credit between individuals with specific guarantees like the mortgage , it is strongly advised to ask the intervention of a notary for a more secure operation. In this case, it will be necessary to foresee the necessary expenses for the drafting of the notarial act, the registration fee and the taxation for any amount higher than 760 euros.

Loan between individuals on platform

To better manage offers and requests for loans between individuals, there are platforms created specifically to serve as a link. If the first p2p lending platforms are launched in England in 2005, the principle quickly seduces borrowers who can now take advantage of the internet to find lenders faster, and this, with control tools set up like the file. positive that reports the activities of a borrower, or methods of exchange between private lenders who can choose themselves the borrowers who inspire them most confidence. Today, peer-to-peer credit platforms operate on the basis of a collaborative credit system to mediate between professional investors and borrowers. Thus, credit becomes a profitable investment product for lenders who can take advantage of a wide choice of borrower profile, while individuals are more likely to find loan offers, while avoiding the scams still very present in the credit market between individuals. Moreover, these specialized websites set up methods of evaluating the performance of a credit to individuals and give you all the information concerning the steps to follow and the forms to fill out for a secure transaction.

Find out about the calculation of a mortgage loan

Although mortgage is the best way to get a quick start for real estate projects, not everyone can benefit.

pret-hypo 2

 

To obtain it, you must have a real estate mortgage loan.

The process is fast and much easier compared to conventional loans. Even if the conditions are more and more interesting, know that the mortgage lends you also in the long term. Some checks are needed to escape the pitfalls and to avoid unpleasant surprises. Find out some tips for calculating your mortgage in Belgium.

Simulation of a mortgage loan, an essential step

Whether you want to buy a house, a building plot or build a house in Belgium, your project requires a substantial fund. Many people resort to a mortgage loan since it offers the possibility of obtaining quick financing. The simulation allows you to find the best rate among several offers. The simulators help you calculate your mortgage loan through the data you provide in the form. In addition to comparing the different offers for you, the simulators also help you to make a mortgage calculation Belgium to estimate all of your costs. In addition to calculating the interest rate, the simulation tool also allows you to determine your monthly payments, the total cost of your mortgage and your repayment capacity.

How much can you borrow?

The cost of your loan is difficult to specify. For a precise calculation, some elements must be taken into account. To determine your maximum monthly payments, it is necessary to take into account the incomes of your household, and this over the last 3 years. After calculating your maximum monthly payments, you can use the financial assistant to determine the amount of your loan. Determining your personal contribution is also important in assessing your credit quality, your ability to contribute at least 10% to the total cost of your project and your ability to save. Once these calculations are made, you can go to the banker. It is up to the latter to determine whether the calculation is realistic or not in relation to your personal situation. If everything is OK, your background will be unlocked as soon as possible.

Tips for Enjoying Your Mortgage

Like other types of loans, the interest rates on a mortgage vary according to the current market rate, the personal contribution and the repayment period. Know that by repaying your loan quickly, you pay less interest. As part of a mortgage, either you opt for the fixed rate formula or the floating rate formula. Although with this first option, you enjoy security throughout your credit without market influence, the floating rate follows each market evolution taking into account the official benchmark and your monthly payments. Before choosing the option that suits you, understand each option well so that there are no surprises and to limit the risks. You will have to make your choice at the time of the subscription of the credit. So, the best thing would be to learn about each of them. Remember that they all have advantages and disadvantages. It’s up to you to weigh the pros and cons.