The real estate purchase is a very exciting adventure, but complex! The whole process lasts several months, and involves very different interlocutors, owners, notaries, banks, etc. the process is quite difficult which is the more reason you will have to consult attorneys for legal guidance before launching. However, very necessary to look into detail in this article the seven major steps that punctuate the path to the good of your dreams.
Calculate your Real Estate Budget
The first step is to determine your real estate budget and make sure it sticks with your aspirations. However, you should set the topmost price you could pay for your acquisition. For this, two steps, first, determine your borrowing potentials, which is the maximal amount you can obtain based on your income. Our simulator is here for that! Second, find out about the prices of the goods that interest you. Indeed, these prices differ according to the idiosyncrasy of the house and its locality. Can you notafford the duplex of your dreams? You are given some tips to optimize your borrowing capacity.
Find the Apartment of your Dreams
You have chained the visits, and finally, it’s love at first sight, you don’t want the house of your dreams to slip away. After negotiating the price and making a proposal to buy, you are launched. The sale is sealed by the sales agreement (or promise of sale) scribbled by the owner and you. As a buyer, you benefit from a cancellation period of 10 days succeeding the signature, after which it is difficult to cancel the purchase unless one of the conditions precedents of the pre-contract is fulfilled (for instance, if you don’t get your credit).
Apply for Mortgage
During this phase, you will seek the cheapest loan with the most advantageous terms. You must not only be vigilant about interest rates, but also associated benefits, flexibilities, credit insurance, and so on. To appeal for a loan, you will have to submit a complete file to the banks. This file, including your pay slips, your statements of account and your latest tax records, is your borrower’s CV for the bank. It is therefore important that you make theeminent impression possible, be now rigorous and organized.
Prepare your file before your search for funding; because once you found your property, it will be fast. Indeed from the time the promise is signed, a period of 45 days is commonly granted to the buyer to allow him time to find his financing. Manage your accounts healthily and especially avoid overdrafts, they will be visible on your statements and will make a very shoddy impression. As disclosed above, the time available for your search for funding is limited and you ought to hurry up.
Get an Agreement in Principle and Reassure the Seller
You have found the bank that suits you. Bingo, she gives you a loan! You will be warned by an agreement in principle, i.e.,a document grouping the elements of credit, amount, rate, conditions, etc. You can, therefore, inform the seller that you have obtained your loan and confirm your decision to buy his property.
Sign the Official Loan Application and Validate the Insurance
To validate your agreement you will have to sign a loan request from the selected bank. It is at this time that the insurance must be validated, it can be done before the appointment of the signature loan application, or the insurance membership can be done at this appointment. In both cases, you must finalize a confidential medical questionnaire. If membership is at the signature appointment and your situation is simple, you can most often get an instant insurance agreement.
The Loan Offer: The Last Moment to Think
After the validation of the insurance and following the opening of the account, the bank sends you and the sureties, an offer of an official loan by registered mail. You have a 10-day cooling-off interval, which you must use; you cannot give an answer during this period. Be patient! Additionally, the loan offer remains valid for 30 days. If you reject the offer, you will not be charged by the bank – but beware, the advance paid when signing the trade-off will probably be withheld to compensate the seller.
Passage to the Notary: You Officially become the Owner
Congratulations, you are there! The signature of the authentic act, which is more often called “passage to the notary” is the formalization of the passage of title deed. This is where you pay the property and pay the notary fees and agency fees. The capitals are released days before the signing of the deed on an account held by the notary. Attention, the funds can be released only if the signature of the authentic act takes place within six months following the acceptance of the loan offer. If you decline from visiting the notary within this time, the loan will be canceled, andthe bank may claim fees.