A mortgage is not something to take lightly, especially if you make your first real estate purchase. You have to consider this act as an important moment in your life and pay attention to many things, which is why you have to be vigilant. Tom Ripley explains the mistakes not to commit.
Errors in a home loan are made by lack of experience and cause regret later for the borrower. When a loan, you must analyze and take a step back on a set of elements and details that will allow you to feel good in the housing you will occupy.
1. Choose the first good without visiting others
Any expert will tell you: no property is perfect! And yet, there are borrowers so sure of their choice who will not take the trouble to visit others. The more you visit different apartments, the more you can be sure of your first choice, it is necessary to compare different proposals and evaluate the environment to be certain that the external elements do not interfere with your personal comfort. We must detect what is going wrong and what is wrong, we are never safe from a bad surprise.
2. Badly plan and organize your home loan
A bank has several requirements, and this is not limited to having a CDI and financial credibility. A bank gives you credit on several criteria, the first is your debt capacity. Tom Ripley has a debt ratio simulator allowing you to judge your case in a few moments:
3. Not paying attention to conditions precedent
To obtain your accommodation, you will have to sign a sales agreement. Tom Ripley advises you to take a notary, this expert accompanies you and advises you on suspensive conditions.
They allow to dissolve a compromise of sale without any penalty. The most important condition precedent is that of financing, if a borrower does not find credit in a given time, the sale may be canceled.
4. A lack of estimate of the amount of potential work
It is important to see if the housing needs a lot of work, this analysis is done logically before buying, it will better specify all the costs.
5. Underestimating fees
There is always a big difference between the price of a real estate purchase and the reality of the cost of the apartment. A home loan takes into account several types of fees:
- Notary fees
- Agency costs
- Warranty Fee
- Bank file fees
- Brokerage Fees (At Tom Ripley, we never take brokerage fees!)
All of these charges can be significant and mark the difference in the price displayed. A home loan implies a financing plan and here too some errors must be avoided in order for the payment to be made correctly.
6. Take a loan without negotiating the price
A borrower can always place himself in a dominant position in front of a seller, you must first inquire about market prices, take the flaws of an apartment as arguments to negotiate the price with a seller, and so make a request in below the initial price.
7. Buy without comparing interest rates
This is one of the most important mistakes. From one bank to another, the rates can be very different and this could have an impact on the total cost of the loan. The more you find the better rate, the more you will realize savings and limit the duration of the loan, hence the interest of going through a broker.
8. Do not inquire about aids
Several public subsidies can be obtained for the modest borrowers, they make it possible to finance the real estate property. The most well-known helpers are the Zero Rate Loan or the Social Accession Loan. This helps save money if you do not pay interest on a large part of the loan.
9. Sign your borrower’s insurance with your eyes closed
The borrower insurance has an important role on a mortgage loan, that is why you have to put in competition several insurances in order to make you realize significant savings by choosing the most attractive. Three laws allow you to save money:
- Loi Lagarde: ensures your credit with the insurer you want
- Act Hamon: allows to change borrower insurance in the year following the signature of the mortgage
- Loi Bourquin (Sapin 2): authorizes the termination of his borrower insurance contract each year.
We offer you a borrower insurance comparator from which you can view the offers of more than 100 different contracts:
10. Resale, do not think about it too late
Everyone’s situations change, so resale is an option that must be studied. So you have to know if after buying a property, you will be able to sell it at the same price.