Realize a real estate purchase is a major project, probably one of the most important of a lifetime.
If becoming a homeowner can be very attractive, it can also be scary, especially when it comes to a first-time purchase.
It is sometimes difficult to navigate the many steps to take. To help you, here is a quick overview of the different steps that will follow until you get your new keyring!
1 # The contribution of supporting documents
First and foremost, it is essential to find your financing and do a study of your repayment capabilities. For this, all banks will ask you for proof. Generally, you will need to provide your last two tax notices, your last three payslips, your last three bank statements, your credentials, your current proof of residence and, if you already own, your compromise of sale. Some professional situations require additional pieces. For example, all self-employed or business owners must provide at least their last three balance sheets. Know that when you finance your property with a mortgage, you have 45 days to get a bank loan. Do not hesitate to play the competition between the institutions to obtain the best possible conditions.
2 # The mounting of the mortgage
Once your bank’s choice is finalized, it’s time to mount your file. The banker then studies whether you are entitled to special conditions such as a zero rate loan, a home equity loan or a home loan. It also establishes the duration of your loan and the amount of your monthly payments. Sometimes a loan has only one line. The assembly is very simple. On the other hand, at other times, it contains several different loans that overlap and are then smoothed to harmonize your monthly payments. Your financial advisor then provides you with a schedule.
3 # The cost of loan
To have a complete vision of your loan, it is important to have an understanding of its overall cost. In fact, a real estate loan is not made free of charge and, by financing your property in this way, know that it will be more expensive than if you pay it in cash. To know the cost of your loan, you have to look at the amount you borrow, the impact of your interest rate, the cost of your insurance, the fees and the amount of the guarantee. Also, look closely at the penalties applied by the bank in case of early repayment.
4 # Acceptance of the loan offer
Shortly after studying your file, the bank tells you whether or not you accept the loan. This is called the agreement in principle. Therefore, the loan offer is sent by the bank to formalize the terms of your loan. You have a reflection period of 10 days to retract. It is only after this term that you must return your signed loan offer by registered mail.
5 # Refund
Finally, once your acquisition is signed in front of the notary, all you have to do is repay your loan. The monthly payments will begin one month after the signature of the deed of sale, according to the schedule initially established by your bank.
In general, to achieve all of these steps, it takes an average of three months.