A good mortgage is a loan at an attractive rate for you that allows you to successfully complete your real estate project. With market fluctuations, it is not always easy to understand how to secure the best possible mortgage. Maisons SIC, a builder of new homes for over 50 years, is used to supporting its customers and giving you some advice.
Have a stable financial situation to secure a good home loan, at the best rate
If we want to be sure of ensuring a mortgage to live up to one's life project, it is appropriate to show a white hand to banking establishments.
And for this, certain obligations persist: a good contribution, a healthy bank account, a stable professional situation and the lowest possible debt ratio.
A significant contribution
To obtain a good mortgage, one of the first tips is to have a substantial personal contribution. This contribution generally represents at least 10% of the total amount of the acquisition.
Banks are increasingly demanding what is called “residual savings”, money which will remain available after the purchase, which must often represent the equivalent one year of monthly loan payments.
It not only serves to cover notary fees and other initial expenses, but also to show your banker that you are able to put money aside. A good contribution strengthens your file and can help you negotiate better loan conditions.
To help you see things more clearly, Maisons SIC invites you to meet its banking partners. Do not hesitate to contact us to tell us about your project!
Banking stability and savings
To present the best possible borrower profile, be sure to ensure good account keeping. Avoid overdrafts and irregular financial movements several months before applying for credit.
Otherwise, an ability to save regularly is highly appreciated by banks. It demonstrates your rigorous and prudent management of your finances, which is an asset for obtaining a good real estate loan.
A reassuring professional situation
The stability of your job is another crucial factor in securing a good home loan. Bankers favor borrowers on permanent contracts or with stable professional activity for several years.
This continuity in employment reassures lenders your ability to repay your loan over the long term. If you are self-employed or in a liberal profession, be prepared to provide proof of regular income over recent years.
Control of the debt ratio
Your debt ratio is a key indicator for banks. It represents the portion of your monthly income devoted to debt repayment. For a good real estate loan, it is advisable to not exceed 33% debt ratio. Proper management of your current finances, by minimizing your other credits (consumption, auto, etc.) before taking out a home loan, will improve your chances of obtaining a better rate.
But above all, to ensure a good mortgage loan at the best rate, it is essential to prepare your file in advance, so that it is complete and reassuring when it is presented to the chosen bank These determining elements will position you as a borrower of choice in the eyes of bankers, thus increasing your chances of benefiting from advantageous loan conditions.
Choose your bank, your broker, your insurer carefully to find the right real estate loan
It is essential to note that not all banks offer the same rates for real estate loans. To find the offer best suited to your project, it is recommended to contact several banking establishments. Comparing these offers will allow you to choose the one that best meets your financial needs and your specific conditions.
The importance of a broker to obtain a good real estate loan
Considering the option of a mortgage broker can greatly facilitate your search for financing. This professional is responsible for negotiate the best loan terms for you, saving your time and potentially money.
Choosing a real estate loan broker from the start of your construction project is crucial. This specialist assesses your borrowing capacity, compares insurance and optimizes your financing file.
Work with a broker, such as those offered by Maisons SIC, allows you to obtain favorable loan conditions, adapted to your situation. It is particularly important to define the financial envelope early, which directly influences the realization of your project in the current market context.
Maisons SIC indeed offers its clients access to qualified brokers who can assist you from the start of your construction project. These experts compare loan insurance and help you prepare your borrowing capacity, thus optimizing your financing file.
Choose your insurer carefully
Loan insurance is another crucial element in obtaining a good mortgage loan. Choosing the right insurer can affect the total cost of your loan as the conditions of cover in the event of a disaster. It is therefore important to compare the different insurance offers to find the one that best covers your specific needs at a competitive rate.
Borrow an amount consistent with your needs and income
Borrowing a “consistent” amount and obtaining a good home loan requires determine in advance the amount of the new monthly payment that you can reasonably assume.
Before even looking for accommodation, it is essential to evaluate the amount possible for your loan to avoid visiting properties that exceed your financial capabilities. The first step is to calculate the amount you can allocate each month without compromising your family budget. A credit specialist will examine your debt ratio, which according to the High Financial Stability Council, should not exceed 35% of your income, to prevent the risk of over-indebtedness.
It is also important to consider your remaining life after payment of the monthly payment, which must be sufficient to maintain adequate living comfort and meet unforeseen expenses. This calculation will take into account the number of dependents in your household.
Then, examine the “load jump”, or the difference between your current housing expense and the estimated future monthly payment. Banks favor files where this change is minimal, indicating a more secure financial transition.
Depending on your situation, you have the choice between a fixed rate, variable rate or mixed rate loan. The fixed rate loan ensures constant payments, optimal for those seeking stability. The adjustable rate loan may initially offer lower monthly payments, but they may fluctuate based on market rates. The blended rate loan starts with a fixed rate and then switches to a variable rate, combining the benefits of initial security and future flexibility.
Choosing the right and appropriate type of home loan depends on your risk tolerance, your current financial situation and economic forecasts. Discussing these options with a financial advisor or broker can inform your decision to find the right home loan, aligning your loan with your real needs and your repayment capabilities.
Use the aid available for your real estate purchase
When purchasing a new home, it is essential to find out about the different financial aid available which can ease the financial burden of this project and allow you to obtain a good mortgage. Maisons SIC, with its fifty years of expertise in new home construction, guides its clients through financing options and potential assistance, tailored to each personal situation.
There is a range of financial support in France for future homeowners, including government grants, low-interest loans, and tax credits which can cover part of the costs related to construction.
These aids can significantly reduce the initial cost and encourage the purchase of more energy efficient properties, For example. Additionally, some specific programs may also offer additional benefits like discounts on mortgage loans.
Concerning the Zero Rate Loan (PTZ), it is important to note that since 2024, this loan is no longer applicable to new constructions. However, Maisons SIC is able to direct its clients to other available aids that can financially support the construction project.
The Social Accession Loan (PAS), for example, remains a viable option for those with modest incomes, and allows access to property by offering favorable loan conditions.
Local support can also play a crucial role. Many local authorities offer financial aid to encourage home ownership in their region. The National Agency for Housing Information (ANIL) provides an exhaustive list of these aids, which can be a major asset for future owners.
Finally, energy efficiency improvements can also benefit from subsidies, which not only reduces costs in the long term but also adds value to the property.
The teams of Maisons SIC are ready to help each client navigate these options and maximize the benefits of available assistance, ensuring that each construction project is as affordable as possible.
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Contact us for any questions about financing the construction of your house!
