Everything you need to know about real estate credit for the purchase of your apartment or house

THE real estate loan is the contract with which a loan is disbursed in exchange for the repayment of the capital within a specified period, plus interest. Interest is the consideration, the profit that the lender (usually the bank) derives from this commercial transaction. The borrower, for his part, benefits from the immediate availability of a sum of cash that he would not otherwise have available.\r\n

How to choose the most advantageous home loan?

\r\nOften, during a real estate loan application, we simply compare the interest rate to determine which is best. However, this assessment is incorrect. In fact, beyond interests,borrower is required to pay a series of additional services such as loan activation fees, valuation of any real estate and insurance, commissions, etc. You can find all these details on the site Vousfinancer.com which explains in detail the procedures to follow to avoid making any mistakes when requesting ready. \r\n

What about the ideal rate: fixed or variable?

\r\nIn fixed rate mortgages, banks generally apply an amortization plan which provides for the repayment of the borrowed capital with identical payments, consisting of an increasing principal amount and a decreasing interest rate throughout the amortization period. . On the other hand, in variable rate property loans, the amount of the deposit follows the rhythm of the evolution of the reference rate indicated at the time of the stipulation. The applicable interest is generally identified by adding a few percentage points (the so-called bank profit) to the variable rate taken as a reference. \n\n\n\nHowever, a variation of the variable rate loan is the constant rate mortgage, in which the rate changes according to changes in the Euribor rate, but the rate remains unchanged. In practice, any increase in market rates determines an increase in the interest part of the tranche with a proportional reduction in the principal amount. Thus, the amount of the tranche remains unchanged, but the reduced principal amount is repaid by increasing the number of installments and, therefore, increasing the duration of the loan and its natural maturity.\n\nRead also: Sale of real estate: what are the steps to follow?\r\n

What happens before applying for a mortgage?

\r\nOnce upon a time, to apply for a home loan, you went directly to the counter of the credit institution. Today, there are many online platforms that compare prices and contract conditions. This allows the interested party to have an overview of the market offers, in order to guide them towards the probable choice.\n\n\n\nIn any case, to conclude the loan you must always go to the bank to sign the contract and, first of all, provide all the data that the institution needs. The first information that the bank needs to establish a quote regarding the amount to borrow, repayment times and, last but not least, the guarantees offered by the customer for the return. These can be of two types:\r\n

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• real guarantees : that is to say on things like a house. You must have a property, also owned by a third party, on which the lender takes out a mortgage for double the loan value.
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• personal guarantees : that is to say on people, such as the guarantee of a loved one. Thus, it is necessary to find a person, also in this case not necessarily a family member, willing to act as guarantor and bear the risk of executive action by the bank if the borrower does not repay the debt. The guarantor will be responsible for the obligation with all his personal property.
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\nRead also: 4 good reasons to prefer new real estate\n\n\n