Non-resident buyers the same like resident ones prefer obtaining of credit for buying real estate in France firstly because of low interest. Also, French banks offer a wide range of credit choice: from a short-term credit to a mortgage. Here you can find the credit when credit and the interest of credit are repaid at the same time and credit in fine, when you first repay interest and at the end the credit itself.
Real estate purchase loans and mortgage in France
Before visiting the objects of the real estate it is quite reasonable to get to know the credit proposals. First, you will better know your budget for the purchase and second, you will learn the upcoming procedures and this will speed up consideration of your application for the credit.
Drawing up by the Buyer is a postpone clause of “Compromis de vente” (forward contract). If the Buyer does not obtain the credit he has the right to dissolve an agreement and take away the guarantee fee.
One must present the proof that you apply for a credit during 15 days after signing of the Compromis. In this case the financial institution gives special confirmation. If Compromis (forward contract) includes a postpone clause and you don’t present the proof of your application for credit, you will lose your deposit in case you don’t obtain the credit.
Usually Compromis names the latest date of drawing up. The minimum date is 30 days from the date of Compromis signing. Reasonable time to obtain a credit for non-resident is 2-3 months. The latest date can be changed if the Seller agrees.
In order to obtain a credit it is necessary to present a pack of documents to the credit institution. The wage earner must present salary slips and bank account statements for the last 3 months, one’s last tax return, and personal information about each borrower. For the self-employers the procedure is more complicated and it is necessary to remember when planning the drawing up.
When you have made all the procedures and the bank is ready to give credit, you will get a tender of loan. According to the legislation you can sign it only after 10 calendar days. So you have 11 days to think it over. Acceptance of a tender is sent to the bank by the registered letter. These time limits should be taken into account when determining the latest date of drawing up in the Compromis.
Notarial deed about the credit is made and often it is integrated in the text of “Асte de vente” (basic contract). This deed includes the credit conditions and it’s a guarantee for the bank if the credit is not repaid.
The text of the notarial deed is adjusted with the bank and the notary, it indicates security of credit if it is not repaid. This procedure takes at least 24 hours and it is necessary to consider when planning the time.
Credit registration expenses are calculated by the credit institution. Extra expenses for mortgage registration are calculated and included into account by the notary. The expenses are usually about one per cent and can be exactly calculated after bargain finish when the notary has all the information given by the credit institution.
In France one can obtain mortgage credit paying off 50-60% of value of property with crediting rate of minimum 3 % for period from 7 to 25 years.
Rent, purchase the real estate on the Cote d'Azur
Our real estate agency on the Cote d'Azur works with notaries and banks, and provides services for the help to obtain of credit as well as for all processes bank-notary-buyer-seller to adjust all dates on behalf of the buyer. Contact us, and we will be happy to answer on your questions. We look forward to seeing you as our client.