Making your first mortgage is always a major step in life. This is why it is necessary to provide you with the baggage required to combat misconceptions. And you will see, there are many!
For the following test, it is necessary to have a paver and a small chisel (a buret). The idea is to take notes on your little pad by reading these lines.
Here are some basic tips to help you get started.
1. Borrowing with little contribution is possible!
You don’t have to have a lot of savings to get a mortgage. It is even sometimes possible to borrow without any contribution.
In truth if the banks appreciate that you have the contribution, it is essentially because it provides that you know how to save (yes the savings holds no more secret for you). They are thus reassured about your ability to repay your monthly payments.
Be aware that in fact, there are no strict rules on intake (first block in the pond). It is even possible, in certain cases, that the banks accept that you borrow without contribution. Eh yes!
For example, this may be the case if you are young or if you are considering a rental investment.
In the first case, the bankers can understand that you do not have much savings yet. In the second case, it is also understandable to want to borrow without contribution to make your savings grow.
It is possible that your bank advisor will tell you that this contribution must be at least 10% of the price, otherwise it is not worth going further. Well, that’s wrong! (second paving stone in the pond)
So finally, take note on the paveme
nt that you will throw in the pond around: it is not imperative to have a contribution to finance his real estate project.
2. Your bank will not always offer you the best credit
Banks are making more efforts to attract new customers than for their existing customers (third paving stone thrown into the pond). This is why going through a broker to compare a maximum of offers is the right method.
We talked about this previously in an article on borrower insurance: online brokers are really cool! Unsurprisingly, online brokers are also an option with many advantages for your loan (note on your block):
- Save time: in France, only banks can grant home loans. Going through a broker therefore allows you to compare the best market rates in the blink of an eye. No more visits to bank branches!
- Save money: brokers have access to preferential rates from banks (because they are a business provider). So they know which banks are the best and can offer better rates than the banks themselves to their customers.
- Delegate the creation of the file: some brokers offer to assemble and gather all the documents in the file for your loan. And this, depending on your project and your situation.
- Low cost: broker rates may vary, but some brokers offer quality services at low cost. And note (still on your block) that some online brokers are completely free.
3. Rates are still at their lowest
Right now, the planets are aligned and the rates are low. But it is likely that rates will rise in the coming months, reducing your real estate purchasing power all the more: this is the right time to buy!
For example, for a loan of $ 200,000, it is estimated that good rates can vary from 0.84% to 1.9% depending on the amount of the monthly payments and the duration of the repayment.
The double reason justifying the purchase is that given the very low rates of the moment, it is often more interesting to keep your savings and borrow the difference. In other words, it would be interesting to borrow without contribution and to borrow the difference (fourth block in the pond).
4. Credit takes time: start now!
65% of French people believe that the various procedures required to take out a mortgage are “complicated”, according to a survey by Opinion Way.
The process of applying for a home loan can be a race against time to get the funds on time. By starting now to prepare your loan application, you save a lot of time, and above all, immense serenity.
As you can see, going through an online broker to prepare your project now allows you to better negotiate the financial conditions of the mortgage.
The pond being full of the paving stones set out in this essay, I now invite you to reread the different notes taken at the burinet on your own paving stone. What can you read there? Yes that’s right, your eyes are not playing tricks on you, you are reading well: preparing your mortgage through an online broker can generate many savings!
You can now throw your pavement in the pond. This sixth block completes this essay and you can now find out about the most interesting online brokers on the market. Several members of the Bankin ‘team have practiced the pavement exercise with Pretto, our partner on mortgage, and they are more than satisfied. So go ahead, pass the info and the pad to your next one!