The 10 steps to a mortgage

When looking for a flat or a house to buy, the most delicate phase is the financing of the property. To help you understand and follow the different stages, we have detailed for you the 10 key moments related to real estate financing.

1- Signing the sales agreement

Once you have found the property of your dreams, you will sign a compromis de vente, which means that you are committed to buying the flat or house.

In principle, this agreement is limited in time, often 30 days, and may contain withdrawal clauses and, in particular, in the event of recourse to a property loan, a suspensive clause providing for the cancellation of the sale agreement if your application for a property loan is refused.

2- The financing plan

To calculate the total amount you will have to borrow, it is necessary to draw up a complete financing plan. To do this, in addition to the purchase price of the property, you need to take into account all acquisition-related costsThis includes notary fees, the cost of any works, mortgage fees, the cost of outstanding balance insurance, and any other incidental costs that may be added. Once you have added up all these expenses, you will obtain the overall cost of your purchase.

3- Searching for a mortgage

To get the best conditions for your real estate loan, do not hesitate to compare the offers of the banks. It is necessary to play the competition and negotiate with each establishment. By canvassing several banks and comparing them, you can make some savings. The easiest way to do this is to use a broker.

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4- Putting together a file

Once you have selected your bank, you must put together your file. In other words, you must present a certain number of documents to the chosen bank: a copy of your identity card, the last three pay slips, a certificate of remuneration, a sales agreement, estimates for any work to be done and proof of a down payment.

5- The bank's prior agreement/in principle

At this stage, in possession of your financing plan and supporting documents, the bank can give you its agreement in principle. This stage is essential for your project to proceed. (In order to obtain an answer as soon as possible, please provide the requested documents in good time).

6- Opening an account with the selected bank

If you choose a bank that is not your current bank, it will ask you to direct your salary(s) to the bank in question. This operation will require a minimum of organisation on your part to inform the various organisations affected.

7- The final mortgage offer

This document, sent by the lending bank, specifies all the characteristics of your property loan (amount, rate, duration, insurance, repayment terms, mutual obligations and prohibitions).

8- Acceptance of the offer

Once you have received the final offer, and agreed to the terms of the loan, you must send the signed offer back to the bank to signify your acceptance of the terms of the credit offer.

9- The deed of sale

This is the official deed of transfer of ownership (the compromis being a preliminary contract) which must be registered by a notary. Once you have signed it, you become the final owner of the property.

10- The start of repayment

The date of signing the deed of sale is also the date on which you start repaying your mortgage. You will pay the first monthly instalment of your loan in the month following the signing of the notarial deed.

Don't forget, at each of these stages, professionals are at your side to bring your real estate project to a successful conclusion. Your estate agent and your bank advisor will accompany you until the official deed of sale is signed. They are precious allies, so don't forget to ask them for advice.

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