Real estate credit: bank criteria

Is there a possibility of being an owner? borrow how much? will the credit application be accepted? When we decide to start buying apartments in Bayonne, there are many questions that arise. Above all, the amount of your home loan depends on your income and your personal contribution. These are the two criteria that will determine the estimate of the amount you can claim. Lending institutions pay a keen interest in the debt ratio of their customers, which must not exceed 33% of their income. Normally this is the case, but as soon as the buyer has comfortable income, the banker, taking into account the “remaining to live” will increase the debt ratio.

 

How much can we apply for?

loan apply for?

Each rule has its exception. Regarding the 33% rule, households with substantial resources will escape the fateful threshold of 33%. Banking institutions are integrating another parameter into their calculation rules: “the rest to live”. It is defined by the amount that remains in the household, when the monthly mortgage loan has been paid. This remainder must be sufficient to cover the expenses of daily life (food, clothing, etc.). Also, in the event that you have considerable income, the bank can possibly grant a more substantial mortgage, in spite of raising your debt ratio to 40 or 45%.

 

Personal contribution

Theoretically, having sufficient personal input is frequently the cornerstone of successful funding. Personal contribution is a sum of your own and available to you before borrowing. The larger this contribution, the better the conditions agreed by the bank.

 

Funding

online loan

To obtain a mortgage, it is best to first contact your bank. Indeed, she knows you better. However, it is not absolutely certain that she will offer you the best product. Checking other offers at other lender establishments may be wise. Do not hesitate to compare and let the competition between banks play. Your bank can align itself with the proposals of its colleagues, or you opt for the offer of another lender more advantageous for you. You can also ask a broker who will present your file to the various banking establishments that work with him. You can make sure you have the best rate and you will escape the numerous steps of banks.

 

Bank administration fees

In the range of 600 and 1000 dollars, the administrative costs represent approximately 1% of the borrowed capital. Its administrative fees differ from one bank to another, the rates are not regulated. As a result, they are therefore negotiable. Try to get a discount especially if you find that the frauds offered by the other bank are cheaper.

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