Daily, in the press and on social networks, candidates for the acquisition declare that the banks no longer want to lend and that the conditions of access to credit have again been tightened. Others point out that certain types of borrowers are ostracized: first-time buyers, intermittent performers, temporary workers, over 60s! Upon analysis, this observation is made following an unsuccessful approach by a borrower to his bank. It is a feeling that is the result of lived situations, here or there, but certainly not of a banking policy which would be restrictive and generalized.
Supply of a purchase document will launch
First of all, in a bank branch, only the supply of a purchase document will launch the exhaustive study procedure of your loan file. Your advisor has productivity objectives and will not invest in the detailed study of your file if it is not formally engaged.
Then, your advisor and the agency director do not necessarily have the power to grant you your credit themselves. A mortgage is not a consumer loan. The borrower and the bank commit to large sums and long terms. This is why, for security and prudential reasons, in each bank branch the powers of commitment are limited. Thus, your advisor will not commit beyond the limits assigned to him. This information is generally never given.
Commitment limit is $ 150,000 and your loan request for a higher amount
you will get a response in principle of the type “For me it goes”. All the ambiguity is in “For me”! In fact, your file must be presented to a committee, which alone validates the granting of the loan. This internal procedure specific to each credit institution increases the response times, especially if the committee judges that the file is incomplete or imprecise.
Also, to avoid unpleasant surprises we advise all borrowers to inquire about the commitment capacities of their contact and the time taken to examine their file.
There are also bank advisers who, given the economic situation, hold a speech which they consider safe for their customers. The argument used will be: “You should wait, prices will fall further – If you use all your savings in personal contribution you risk being destitute if your situation should change etc …”. In this context, do not wait until your file receives all the attention it deserves.
The borrowers who use the services of a broker
It has understood that a professional interested in results puts all his skills and commercial capacities to obtain their credit in the best conditions.
Age, health, lack of contribution, professional situation do not immediately constitute discriminating criteria. Daily we get credits for customers who have been refused by their bank. Thus, having a contribution is certainly a plus for the file, but certainly not an imperative condition. We finance, for example, 100% of first-time buyers who have only the costs of an act. In addition, we have partnerships with banks specialized in financing rental investments up to 110% including deed costs.
Basically, you should know that the major credit chains are building their financing agreements with banking platforms exclusively dedicated to real estate financing.
The management of these specialized platforms have the greatest power to agree on the requested amounts and also for negotiating interest rates.