Real estate loans are granted by a bank or financial institution
Some lenders specialize in real estate loans , such as Crédit Immobilier de France, a specialist in social loans (this organization is, however, the latest news, in financial difficulties). The mortgage is always for a long time: at least 5 years up to 20 or 30 years, depending on the amount borrowed and repayment capacity of the borrower. This is a loan that is long-term and should never be written lightly.
Getting the best rate is a necessity , so do not hesitate to compete, comparing the conditions of the proposed credits. Start with a search on the internet, for example on a credit comparison, which will allow you to perform a simulation. Then contact several banks, or seek the services of a mortgage broker. Above all, avoid overvaluing your income in order to obtain a loan more easily and do not incur more than 30% of your net income: you might not be able to meet the deadlines!
A mortgage is usually fixed rate, over the life of the loan, and this is the most common situation in France
Nevertheless, there are some adjustable-rate offers. In general, a personal contribution between 10 and 30% of the necessary budget is requested by the lender, even if in certain situations you can get a loan for the entire amount.
In any case, it’s important to know that banks like to deal with customers they think they can trust. This confidence is traditionally measured by the personal contribution of the borrower: the more it proves that he knows how to save, the more likely he is to get his loan, but also to benefit from a better rate. TEG is the overall effective rate: this is the total cost of the loan to the borrower as an annual percentage of the credit amount.
The mortgage is secured by insurance
The principal home loan can also be supplemented by other loans, depending on the amount you need to borrow. Finally, you should know that the lender has obligations to you: its first obligation is to advise you best, after thoroughly studying your financial situation. The second is to conduct a number of checks before paying the funds, especially if you buy in the new or if you have your house built: the bank must always check the certificate of delivery guarantee.