It is the obligatory step to become the owner of your property: obtaining a loan from the bank to buy your house or flat.
Have you found your future home or are you actively looking? Before making an appointment with an advisor, prepare your file carefully beforehand.

Here are the 8 tips to make your dream of home ownership a reality.

1- The amount of the contribution

Even if it is possible to obtain a loan without a deposit, banks often require the borrower to make a financial contribution. This is because most banks consider that the contribution must cover the various costs (notary and file fees). The amount of this contribution may also vary according to the banks and the overall quality of the client's file. Savings account, home savings plan, early release of funds, etc. Several financial sources can be combined to raise the amount of the personal contribution required by the banks.

2- Professional stability

More than ever, banks fear instability. Open-ended contracts and seniority are the keys to accessing credit. It is necessary to be able to prove a stable professional situation. For the liberal professions and the self-employed, it is recommended to provide two or three years of balance sheets.

3- Beware of overdraft

Before deciding whether to grant a loan, the bank examines the borrower's financial situation. It is therefore important to avoid being overdrawn in the three to six months preceding the application If the borrower is above reproach in this respect, it will be easier not only to obtain credit but also to negotiate the terms of the loan with the bank. If the borrower is above reproach in this respect, it will be easier not only to obtain credit but also to negotiate the terms of the loan with the bank.

4- Monitor your debt capacity

This is perhaps the best-known rule for would-be borrowers, known as the "33 %" rule. The exact rate varies from bank to bank and from application to application. If indebtedness is an important point,  the 33% rule is not a strict condition. The notion of the amount left to live on is crucial to the acceptance of the application.

5- Gathering the documents

Showing up with only half the documents you need, or sending your pay slips and other statements in a rush, will be unpleasant for your interviewer - and will make you look untrustworthy to them. Provide the necessary documents as they are requested. This is also important for you! You will get an answer more quickly if all the information is included in your file in good time.

The documents to be provided are :

- Copy of identity card
- 3 last payslips
- Last salary certificate
- 3 most recent bank statements
- Sales agreement
 - Proof of contribution  
- Certificate of housing rights (Luxembourg Ministry of Housing)

6- Do not wait too long

In the same vein, it is preferable not to wait too long before seeking financing. From the time of receipt of the preliminary sales agreement, the buyer of a property has a fixed period of time in which to justify to the seller that he has obtained a loan. It is advisable not to waste any time.

Anticipate even before you find your property. If you have precisely defined your project, your needs and the type of accommodation you want, you can already contact a broker to find out about possible financing offers.

7- Be careful what you buy

The more dynamic the property market is in the town or district where you buy, the greater the chances of selling your property quickly and under good conditions. You may not think about this when you buy, but your bank is likely to pay attention.

When buying a property for the first time, also be reasonable about the purchase price. There is no point in coming up with a project that is likely to be rejected.

8- Try to reduce the length of your loan

The risk that the bank takes increases with the duration of the loan it grants. It may therefore be a good idea to reduce the term of your loan as much as possible... as far as possible.

For example, by increasing the amount of your personal contribution, or by postponing certain works if you wish to acquire a property to be renovated.

To get the best possible conditions for your real estate loan, don't hesitate to compare banks. It's important to be competitive!
If you are not comfortable with the financial world, use a credit broker. As a finance professional, the broker will provide you with valuable assistance. He or she has a network of solid financial partners and will select for you the banks most likely to accept your application. Contact an atHomeFinance broker