Apply For A Mortgage – Online Mortgage Application
Each year, there are 700,000 to 900,000 real estate purchases that are made in France. Except in rare cases, buyers need to finance their acquisition with a mortgage. Banks and other funding agencies therefore receive very regularly mortgage applications. We will see what the steps to follow are and the supporting documents to provide when applying for a mortgage. We will see that there are different possible paths. We will also return to the possible answers to these requests and how to compare carefully the offers of mortgage between them in order to choose the best to finance your purchase of house, apartment or ground.
What are the steps and the mandatory documents to provide?
You want to buy a house, apartment or land. You have found a property that corresponds to your needs and your desires and you have made an offer to buy or you are in the negotiation phase of the price and the signing of a sales agreement is on track. Or rare case of cash payment, you will now have to study the financing solutions for this purchase.
You can start by studying the real estate purchase aids that currently exist depending on your project (purchase of a principal residence, a second home, real estate to rent, etc.).
You will then need to apply for a home loan. For this the easiest way is to start by doing it in your usual bank. The one who currently manages your main accounts, where you receive your income and who handles most of your financial needs. This will allow you to have first comparisons before looking at what other banks or credit agencies offer. Your bank is best placed to process your request. She knows you more or less, she sees the state of your bank account, your savings, etc. This will facilitate a first mortgage application.
Finally, you should not just file an application with your bank. Real estate loan terms vary greatly from one bank to another depending on the time of year, borrower profiles, your needs, and so on. It may be worth it (and the cost) to take some of your time to compare the bank offers for your project and find the best possible financing. To edit a credit proposal, your bank or the bank contacted for this purpose, will ask you different supporting documents for a mortgage application. Preparing all this information can save you time in your efforts.
Ability to apply for a home loan online
In recent years, apply for a home loan online for mortgage credit are increasing. We have seen that there are among the online bank finance companies for a home loan. This is the case, for example, with Citole Immobilizer or with Boursorama. In addition, most of the major French banks (Credit Agricole, BNP Paribas, Societe Generale, Credit Mutuel, Banque Postale, HSBC, etc.) also propose to file in a few minutes an online mortgage application. Each of these companies will then process your file in its own way. Some will manage everything remotely, others may suggest you to finalize your financing file with a physical appointment in the bank branch near you.
In addition, go to the banks yourself is a possibility, but you can also use a credit broker, it will take care of studying with you your needs based on your purchase plan and your personal situation and it will be able to study among the current conditions proposed by the banks, which will be able to provide you the best offer of loan. You delegate your search for the best financing to a professional whose job it is. Again, applying for a home loan only takes a few minutes. An advisor will then contact you to find the best possible solution with you.
Receipt of financing offer by banks or credit institutions
In concrete terms, as soon as you have finalized your mortgage application, it will be studied in detail by the bank. It will study your project (type of purchase: new or old purchase, with or without work, etc., purchase price and notary fees or real estate agency, estimate the real value of the property you buy, etc. ) and your personal and financial situation (income, expenses, other loans, accounts, etc.). Depending on this, she will decide:
Whether or not she agrees to respond to your request with a mortgage offer. To increase your chances of being financed and to obtain good conditions for your mortgage, follow these 15 tips to get a better rate.
If it makes an offer, it will decide the interest rate, the monthly payment, the duration and other terms depending on what you have requested and its own criteria. It will thus undertake to finance you if you accept this offer on these terms. To fully understand the procedure following the receipt of this proposal, consult our explanations on the loan offer. There is in particular a period of a few days to respect before you can sign an offer of mortgage.
If she refuses to finance you, she has no obligation to justify her choice. It’s up to you to find solutions following this refusal of real estate credit, either by modifying what blocks this bank or by convincing it more, or by finding another source of financing.
How to compare these loan offers and choose the best one?
The most compared item remains by far the mortgage interest rate. You can follow all the news on real estate rates and look on our barometer of the best rates and average rates what are the current trends and possibilities depending on the expected repayment period for your loan. Nevertheless this is not everything. It would be a serious mistake to compare only the mortgage rate excluding fees and insurance.
First of all, it is best to compare the loan offers you receive as a result of your requests at the Global Effective Rate (APR). It is for summary a rate which integrates the different financial elements of your financing (expenses of file, cost of the insurance borrower if subscribed with the bank which makes the credit, expenses of guarantee, etc.). This allows you to take into account all the costs of your mortgage and therefore to compare the full costs and not just the total amount of interest on the loan. We offer you a TEG calculator for a mortgage, but normally any mortgage offer must contain this very important information.
Then, apart from the quantifiable elements of a loan offer, there are other conditions to study that can make you choose a home loan seemingly a bit more expensive than another:
Does the bank require to house your income at home?
In exchange for a good loan rate, do you have to subscribe to other products of the bank (home insurance, car insurance, life insurance or other financial or stock investments, etc.)? Normally the costs of these bonds must be included in the calculation of the TEG, but not all banks comply with this rule.
Is the loan flexible? That is, is it written that you have the opportunity to adjust your monthly payments down or up under certain conditions? This is regularly the case, but the terms are not the same from one bank to another. This helps to reduce monthly payments if you can no longer keep up (keeping in mind that it will then come back to you more in interest and insurance contributions) or on the contrary to increase your monthly payments as a result of better opportunities to pay. Repayment to reduce the remaining cost of your home loan.