That's it ! Have you made the decision to acquire real estate as residential use as a main residence, or as an investment to receive long-term additional land-type income from the rents collected? Or even with a view to carrying out work to improve your home?
All of the above ideas require funding for their realization. The mortgage is the most suitable for financing its types of projects. However, you have to be careful to be able to thwart the traps of mortgage credit!
Mortgage loan, a weapon of seduction
It should be noted that banking organizations have real estate credit as a product to attract new customers to their establishment. A strategy that benefits the banking organization, allowing it to be triage upstream, and this all according to the potential profit per customer.
The eligibility criteria put in place are generally the amount of household income and the capacity of the amount that the client (s) can potentially save. Of course, the domiciliation of salaries is compulsory, and also the establishment of one or more programmed savings.
Or the subscription to various products such as home insurance, auto, or consumer credit, etc. This translates into obtaining the best interest rate for the financing of its mortgage in return for subscribing over the long term to various services offered by the banking establishment.
A profitable formula for the banks!
Play the competition for your credit
When a bank account is opened for the establishment of a mortgage, it is because the financial profile of the borrowers is profitable thanks to its ability to repay the loan, to consume paid services such as the bank card, etc. Conversely, the financing of the mortgage is refused upstream, and the opening of an account does not take place. If the customer is profitable, then he can afford the luxury of competing.
In order to be best advised on the most advantageous financial package, and the most suitable for your real estate project, it is recommended to call on a broker. It is not necessarily the current bank of the client (s) that will make the best refinancing proposal at the best cost . So, we have to play competition. That is to say, to undertake the tedious process of knocking on the doors of all the banks to obtain the best interest rate.
The broker is a Banking Operations and Payment Services Intermediary (IOBSP) who knows all aspects of mortgage negotiation and is a real guide to obtaining a loan buyback . He intervenes by representing the financing file of his clients with all the largest banking establishments on the market. In other words, it creates competition for its borrowing clients and chooses the bank or financial organization that makes the most advantageous financing proposal in terms of rates, etc.