When it comes to securing the best interest rates this autumn 2021, the most studious borrowers will find themselves at an advantage. Let's take a look at what it takes to be one of the banker's darlings.
With so many applicants among the ranks of borrowers, bankers are likely to be very demanding when it comes to granting home loans. That's why it's so important for project owners to be serious and rigorous, so that their application gets a good rating and is accepted!
Quality n°1: FORWARD THINKING
He saves. In this period somewhat marked by the effects of the health crisis, the borrowers most willing to put money aside will arrive with a fine asset in hand. This practice is highly appreciated by bankers, both for the behavior observed and for the money raised!
Good students can refer in particular to their PEL (home savings plan), which allows them to make a monthly payment of a minimum of €45 or €540 per year. Interest-bearing at a rate of 1%, this investment is logically used to build up capital for the purchase of a home.
Tip: you may prefer another investment to the PEL, but it will be less well remunerated, as in the case of the Livret A or the LDD, which yield only 0.5% but where the money remains available. In all cases, opt for automatic transfers so that the account in question is regularly topped up.
Quality n°2: ENTREPRENEUR
A real estate project requires information, evaluation and decision-making... All these decisions will lead to the choice of a property that offers good prospects in terms of value and location. These are all criteria that the banker will appreciate when deciding whether or not to grant the loan.
Tip: make the most of the assets of the property you're interested in, and highlight its potential added value in the event of sale. When the price more than covers the amount of the loan, the banker will applaud you!
Quality n°3: REASSURANCE
Self-financing: the key to success is the amount of your down payment. This is the amount of money the buyer is able to mobilize to realize his real estate project, and it tends to grow due to economic uncertainties. As a rule of thumb, the down payment should be between 10% and 20% of the total cost of the purchase.
Tip: dip into your available savings and then into vehicles such as the PEE (company savings plan). Don't forget to call on family solidarity. And count on your banker's leniency...
Quality n°4: VIGILANT
Watch out for repeated overdrafts and other banking incidents. When it comes to lending money, bankers keep a close eye on account maintenance. After all, repaying the monthly instalments will entail additional charges. So it's best to demonstrate your ability to adapt your lifestyle!
Tip: show exemplary behavior in the 6 months leading up to your project.
Quality n°5 : Cautious
In addition to the interest rate, you need to analyze the cost of credit. This includes monthly repayments, borrower's insurance, bank guarantee and administration fees. Banks provide simulations, which you should compare after consulting a number of brands.
Tip: Borrow for the shortest possible term to ensure that your loan costs as little as possible.
Christophe Raffaillac