With today’s low mortgage rates, many households and individuals want to become homeowners. They will have to present guarantees of professional stability, prudence in the management of their accounts, and if possible have savings. The conditions are strict but everyone has a chance, here are the conditions to obtain a mortgage.
When there is only one borrower
When the borrower is an employee
If the borrower is an employee, he must hold an open-ended employment contract. If it is still in a trial period, the credit organizations will agree to study the file, but will not definitively grant the loan until the trial period has passed.
If the borrower works on a fixed-term contract, on an interim basis, as an intermittent of the show or in any other configuration consisting of short assignments, he can still take out a mortgage. However, most credit agencies will want to see if the candidate has worked continuously for the past 2 years.
Salespeople receiving commission
The salesmen whose remuneration is made up of a fixed salary and a commission, tend to frighten the banks. The latter will need to make an average of the commissions collected over the last 18 months, see over the last 2 years. This rule applies even if the salesperson holds a permanent contract.
When the borrower is a civil servant
In the public service, the trial period is 1 year, at the end of which the agent will be established. Being a civil servant is a good point for a credit organization, due to the sustainability of the income. However, no mortgage application will be accepted during the first year of tenure. Once established, the official can then borrow.
When you are self-employed
When the applicant for a mortgage is established on his own account, the reaction of the credit organizations will be different depending on the nature of his activity. We will more easily trust a lawyer or an architect than a construction worker. A lender will generally want to consult 2 balance sheets plus an accounting statement for the current year. This provision makes it generally difficult to take out a mortgage before 2 years of activity when you are self-employed.
When there are 2 borrowers
A sustainable income at least in the couple
A couple, one of whose co-borrowers is on a CDD, will be able to benefit from a mortgage if the other is on a CDI, or is established in the public service. The same rule applies if one of them is installed on his account. The other must have a certain professional stability, in the form of a permanent contract or a position in the public service as a holder.
The importance of professional experience
A couple of auto-entrepreneurs will be able to obtain a mortgage if they can show at least 2 years of activity with a positive balance. A couple of temporary workers also have their chances, if they have worked continuously during the last 2 years. The economic sector plays a role in the opinion of lenders on the strength of borrowers. A couple working in computer technology reassures more than a couple working in the mining industry in France.
Banking behavior of borrowers
Borrowers who have had bank overdrafts in the past 6 months or even the past 12 months will have to wait. Credit unions have a negative view of these mortgage loan applicants who are already struggling to manage their own accounts, and who want to increase their expenses even more.
Monthly savings based on rent
The relationship between the amount of the borrowers’ rent, that of their monthly savings and that of the monthly payments are very important.
If a couple pays their rent $ 800, they apply for a mortgage with monthly payments of $ 1,200, their bank account should show a positive balance of $ 400 at the end of the month.
If a couple pays their rent $ 800, they apply for a home loan with monthly payments of $ 1,200, and their bank account is at $ 0 at the end of the month, they will not inspire confidence. The potential lender will wonder how he can find the remaining $ 400?
Savings if possible
Banks especially like savers. So much so that when a borrower has a personal contribution, some banks may prefer to place it on their financial products, rather than in real estate. In any event, a borrower capable of saving is able to use the passbooks and life insurance offered by the banks.