Financing

Get a financing is an essential step for every real estate project. Such a buying is sometime uneasy to finance and comply the right steps makes the project get closed easier.

Work out his budget

The first step is to work out his budget in order to know how much you can borrow. The borrowed amount and the debt rate are controled in France, nevertheless you are responsible for taking into account each risk factor. To work out your budget, you have to take into account the set of its monthly fixed expenses : funds, tax, insurance, every bill and your savings, you may get a smooth financing over twelve months if necessary (in particular for tax or certain bills youp ay twice a year). Add the expenses you regulary pay and that you cannot remove, by also smoothing over 12 months : grocery shopping, gasoline, … Then, allow money for lesure activities and holidays : eating at the restaurant, going to the movie theater, holidays (allow a smoothed budget over 12 months), season tickets for sport, ... After your budget is worked out, you will know your repayment power. Be attentive, you will not be able to make yourself get into debt over 33% of your monthly total income since the loan is law-controled, all your fixed expenses being already involved in your debt rate.

The right contacts

Your first contact will be your banker. He knows you and how you manage your money. He will be able to provide you the best advices.

However, it is interesting to make the competition work. Do not hesitate to compare what you are offered. Some organizations are more open but do not provide the same secures. You have to pay attention to each loan supply (fixed/variable rate, insurances, asked secures, …) to choose the best one.

You may also contact a broker. He will be able to find out the supply which matched your profile the best depending on your file. It is a good way to make the competition work. By paying your borker, you will save time, get advices, and have peace of mind.

Finally, your real estate agent may also provide good advices in this sector. He knows the banks and their loan-related demands and he will be helpful if you need. Real estate agents and bankers are used to working together in a sector where purchase and financing are closely linked.

Complementary and alternative solutions

You have to know that many sweetener plans exist to be a home-owner, some ones are subject to resource conditions and other ones may interest everyone.

The new PTZ+ 2011 In force since January 1st 2011, the new interest-free loan, “PTZ+”, is allocated by the banking house without any resource conditions. The only preconditions to get this aid to be home-owners: become a home-owner for the first time (newly-home-owners) of his property, be it an apartment or a house, new or older. The loan amounts will be worked out depending on many criteria: number of people in the household, the resources of the contributing household, the geographic area where the property is, the property’s energetic class. The maximal amount of the transaction fundable by a PTZ+ linearly increases with the number of people making the household. The total amount of the allocated loan will be a percentage of the transaction to be financed; this percentage varies with the criteria mentioned above. The term and the monthly repayments will depend on the household’s yearly income (from 5 years for the richest people to 30 years for the poorest people). Every newly-home-owner receiving this loan, do not hesitate to ask your banker for it ! www.ptz-plus.com

The 1% logement

The 1% logement is the employers’ contribution for the construction. Organizations such as the CIL (interprofessional committee for home – non-profit-making assocation) manage the funds which are allocated for home-related aids, this is for purchase or renting, for the workers from the companies which contribute. To own his home, the « Prêt Acqusition » helps to finance the purchase of a building plot and the construction of a house, the purchase of a new or older home, the transformation of a place into a home or work in your property. The only condition is that your property must be your main residence. The loan’s amount cannot be higher than 30% of the final cost price of the transaction and depends on where the property is located. The loan « Sécuri-Pass » supports the repayment up to 12 months when you have trouble repaying. Every worker from a company contributing to the 1% logement is able to receive those aids. Do not hesitate to get more information at your works council or your human resource service. CIL from your department are also able to provide your answers. www.pratique.fr

The local aids and the allocations.

Certain cities provide interest-free loans to encourage the tenants to become home-owners (Tours, Caen, Paris, Amiens, Orléan, Annecy, Nice and Nantes).

You can also get at your bank a real estate loan from the State with your private loan. In addition to the PTZ+, the registered loan, the home-buying loan and the social rental loan exist. All of these funds promote the home-buying offering a partial financing of the transaction with a reduced rate.

Do not hesitate to get more information by getting in touch with professionnal from your company, your bank, your real estate agent or organizations from your city or department.