Buying a home often requires the use of a home loan. Can we borrow with current credits?
Many households wish to embark on a real estate purchase project. However, to become an owner, you have to apply for a loan from the bank and have a suitable debt capacity. With credits being refunded, this operation may be more difficult to set up.
The rule on the debt ratio
In terms of mortgage credit, a rule applies to all borrowers, that of the debt ratio. Indeed, your monthly payment must not exceed one third of your net income load in order to minimize the risk of over-indebtedness. The bank will examine, in addition to the debt threshold, the remainder to be lived taking into account all the credits previously subscribed.
If you are not able to settle your current loans, two solutions can be considered: either the amount of the desired mortgage will be reduced or the maximum debt threshold will be reached. Several solutions can nevertheless allow you to buy without waiting.
Solutions to buy a house with credits in progress
You have found the house of your dreams but your current credits are holding you back in your project? These solutions can allow you to buy without waiting.
Consolidate monthly payments thanks to smoothed credit
Smoothing or tiered credit is a technique that involves determining a single monthly payment over the life of the loan. Initially, the portion of this monthly payment devoted to the repayment of mortgage is low in order to more quickly pay off consumer credit. When it is repaid, the part devoted to the repayment of the mortgage increases.
The smoothed credit can thus enable the borrower to increase its financial envelope and complete its purchase project. However, this solution can only be put in place when the current credit expires soon.
Mobilize your personal contribution
If you have the opportunity, it is better to repay the credit in advance in advance to present a better record of mortgage. For example, you can use whatever contribution you have made to pay off your outstanding credit. Indeed, some banks agree to grant a mortgage to borrowers with a personal contribution of less than 10% of the amount borrowed.
Change bank with several credits in progress, is it possible?
The Macron law does not allow borrowers with multiple loans in progress to switch banks. If the transfer of credits is prohibited, it is always possible to resort to the repurchase of credit. In this case, the loans contracted will be grouped into a single credit allowing the subscriber to benefit from a reduced monthly payment. This operation includes the financing of a new project such as the purchase of a house for example. A preliminary study is still necessary to study its feasibility according to the situation of the borrower. This first study proposed by each credit institution is completely free and without commitment. After confirmation of the feasibility of this project, you will have to build a file that will be subject to validation with the chosen financial institution.
Do you want support throughout your project? Do not hesitate to call a broker. This professional answers your questions and can provide you with personalized advice so that the operation takes place in the best possible conditions. In addition, it has a large network of partners giving access to preferential rates that you can enjoy.