Become an owner, invest in real estate, renovate a property or buy a lot, there are many real estate projects today that require for their realization, a significant financial investment. For this in most of the time, you will need to borrow some or all of the money needed to make your purchase. Currently, in the real estate market, you will be able to find many financing solutions.
Indeed, there is a large number of mortgages and finding oneself there can become difficult and tedious. To help you in your efforts, banks and financial institutions have set up a tool: the comparator mortgage credit.
By using a comparator mortgage, you will be able to estimate the feasibility of your project but also get offers to achieve it. With a real estate credit comparator, you will see that the realization of your project will seem simpler, faster and that mounting a mortgage application is easy thanks to this tool, the comparator real estate credit.
What is a mortgage?
Today in France, to realize each of your projects, there is one or more credits that can be solicited to finalize them. From consumer credit, personal loans and auto loans, you will find that every project has a credit. It is therefore not original to find credits that are totally reserved for investment in the real estate market.
Whatever your project, be it the purchase of a house, a construction, work or the purchase of a foot in the sea or the mountain, if your financial situation allows you, you can claim a credit called real estate credit.
The mortgage is indeed a credit reserved for this type of project (purchase, construction, rental …) when it exceeds the sum of 75000 dollars. Granted by a bank or a specialized lending agency, the mortgage is realized over a fairly long period ranging from 5 to 35 years on average. It’s possible to go up to 50 years depending on your financial situation, your age and a lot of other criteria. It is important to specify that in the case of a loan relay, namely a loan that allows you to run the sale of real estate and the purchase of a new property, you can have a mortgage with a relatively short duration. This type of credit is not without risk.
Keep in mind that if you have bought a property and you can not sell the first one, you will end up paying back the 2 credits. It is therefore important to tie the two projects well so you do not end up in a situation where you could not pay off your debts.
Different possibilities of real estate loans …
Before you start using a credit comparator real estate, it is necessary to take stock of the various real estate loans available to you, to consider all eventualities. You may be pleasantly surprised to find that you can claim more credit than you thought.
Generally when we talk about home equity, it is a “classic” home loan. The so-called classic home loan is the credit which must be greater than 75000 dollars. The interest rate associated with this type of credit is a fixed or revisable rate.
With this type of credit, you repay the amount borrowed by monthly payment (fixed or variable depending on the interest rate) over an average period of 20 years in France. This duration can go up to 40 or even 50 years depending on the situation.
Keep in mind that, although the repayment term of the mortgage is long and the monthly payment is “smaller”, the longer you borrow, the more your credit will cost you money. Indeed, the longer the duration of the loan, the higher the interest rate linked to your credit. You will therefore repay a smaller portion of the amount borrowed per month. The interest portion will be the largest part of your monthly payment.
In addition to the so-called conventional real estate loan, there are other credits that you may be able to claim. Thus, you can subscribe to a loan called “zero rate loan”. Beware, if the conventional mortgage is not subject to some regulation (although it is granted according to your financial situation), it is different for loans at zero rates. First of all, you need to know that this loan can not finance the entire purchase. It is, moreover, accessible only in primo acquisition. Indeed, you must not be or have been a homeowner in the last two years.
To qualify for a zero rate loan, you will have to meet income criteria
The geographical area in which you want to make the loan at zero rate will also be taken into account in its allocation. The more expensive you are in an area where real estate is expensive, the more money you can borrow. Finally, if this type of loan is generally granted for new housing, you can apply for subscription if the amount of work of the old housing you want to acquire is greater than 25% of the total cost of your real estate transaction.
Classic credit and zero interest loans are not the only two possible means of financing. Other types of home loans are available depending on your financial and socio-professional situation.
When you are a beneficiary, receive social benefits, and benefit from, for example, personalized housing assistance, otherwise known as APL, you are in the situation where you can claim a state-owned real estate loan. Although it is awarded according to your social situation (and not according to your financial situation), this loan is an interest-bearing loan (with an interest rate like the classic home loan) repayable over a period of from 5 to 35 years old.
It can, unlike the zero rate loan, finance all of your work or the total purchase of your home (new or old). Other types of credit can still finance these projects when you are in more modest situations. This is the case of the social loan, repayable over a period of 5 to 25 years. Contact specialized organizations (such as the Red Cross or Secours Populaire), a social worker can also inform you and guide you on the different options available to you. Each situation being different, it is impossible to generalize the conditions of obtaining this type of mortgage.
Why use a real estate credit comparator?
Becoming a homeowner, investing, doing work in your home or your apartment usually requires a large supply of money, funds to carry out your project. The solution, besides having savings to finance this investment, is to make a mortgage. But as we have seen, there are a multitude of possibilities to carry out a mortgage as well as a number of establishments allowing you to finance this project.
In order to allow you to choose the best offer, to facilitate the procedures and to make you accessible to all the possibilities, the credit institutions and banking organizations have put in place tools allowing you to select and find the offer which corresponds to the better to your expectations. The real estate credit comparator is this tool. Easy and fast to use, a real estate credit comparator is no other than a catalog of real estate loan offers from the partner organizations of the site that offers this comparator real estate credit.
Each comparator real estate credit will be different according to the organisms he lists in his catalog. Do not forget to perform different simulations with another real estate credit comparator. The offers will be different and may vary completely depending on the site on which you use the comparator mortgage.
With a few clicks, the real estate credit comparator will select real estate loan offers that look like you, in line with your situation and allow you to finance your real estate project.
How to use a real estate credit comparator?
The use of the comparator mortgage is quite simple. It looks like the use of an ordinary credit comparator except that in our case, you will need to fill in information about the project you want to do.
So, before using a real estate credit comparator, learn about your ability to borrow but also about your project and the budget needed to achieve it. Once you have gathered all the necessary information, you can use the mortgage comparator to target your loan.
Some calculations to make before using the comparator mortgage.
Debt ratio and rest to live
When you make a mortgage, in addition to the budget that you can allocate to the latter, it will take into account your debt ratio. This rate corresponds to the part of your budget that you grant monthly to the repayments of your various debts (consumer credit, revolving credit, car loan, etc.). Although there is no law defining this rate, it is customary to consider a maximum debt ratio of 33%.
This means that you must not have more than one third of your budget dedicated to the repayment of your credits. This rate is given as an indication because it can be re-evaluated according to your income and your “rest to live”. The “remainder to live” is the sum that you have left after paying off your debts and removing the fixed costs. This sum must not be less than the amount of RSA, ie 535.17 dollars on September 1, 2016. This sum is reassessed by 50% for a couple.