Loans for purchasing real estate and mortgages in France
Getting a loan and a mortgage to purchase real estate is not very difficult in France. The main advantages of working with French banks are low interest rate )according to the Russian standards) and the wide range of credit products offers, from short-term loan to the mortgage. There may be an option of gradual loan and interest repayment as well as credit in fine, when the interest is paid first, and the body of the loan is paid only at the end of one stage.
Before you visit the real estate items in which you are interested in, it is reasonable to get to know the available credit offers. First, it will help you understand your budget better and, secondly, it will give you an idea of the procedure and speed up the time of consideration you application for credit.
Getting a loan by the buyer is a Compromise De Vant suspensive condition (preliminary contract). In the case of not receiving it the customer has the right to terminate it and collect a guarantee fee. Usually, Compromise states the deadline for receiving the loan. The minimum term is 30 days from the date of signature of Compromise. Reasonable period of getting the credit for non-resident is 2-3 months. The deadline may be shifted according to the agreement with the Seller.
In almost all cases you will be asked life insurance policy. For aged people and for people with health problems it is necessary to apply for loan as early as possible, so as life insurance process in this case may take more time. Also, be aware that if you specify serious health problems in the form of loan application you may be asked to undergo a series of medical procedures, ranging from a simple visit to the doctor to a blood test and ECG. You should keep in mind that you can be insured at your own insurer, different from the one proposed by the bank, but in this case the procedure gets more complicated and prolonged.
If you have passed all the procedures and the bank is ready to grant a loan you will receive an official loan offer. By law you can sign it only after 10 days. That is, you have 11 calendar days to think. Acceptance of the proposal is sent to the bank by registered mail. This time frame must also be considered when determining the deadline for the loan specified in the Compromise.
As for the loan, the notarial record is made. It is often integrated into the text of Ak De Vant (main contract). This entry contains the terms of credit and a guarantee of debt service coverage ratio for the bank in case of nonpayment of the loan. Texts of the notarial records shall be agreed between the bank and the notary. It indicates the repayment in case on its non-return. This procedure takes at least 24 hours and it is also necessary to consider when planning time.
The cost of processing the loan are counted by credit institution. At the same time, additional costs for the registration of mortgages are calculated and included in the bill by a notary. Costs constitute in most cases about one percent and can be accurately calculated only at the end of the transaction when the notary has all the information provided by the lending institution.
In France one may obtain a mortgage loan covering up to 60% of the value of the property at an interest rate of 4% for the period from 7 to 25 years.
Our close cooperation with the banks will find the best option for financing your purchase in France.
List of required documents for registration of mortgage loan:
• Copy of tax returns for the last two years
• Extracts from the available bank accounts for the last 6 months
• Proof of the existence of an initial payment
Documents confirming the marital status of the Borrower
• Copies of internal and international passport (the copy of internal passport should contain all pages including blank ones)
• Copy of marriage certificate and / or a copy of divorce certificate
• Copy of birth certificate of children (or copies of Borrower’s children’s passports if there are passports)
Documents confirming information about employment and income of the borrower
• Reference from work on the amount of income for the last two calendar years and for the last months of the current calendar year (provided by the employer bookkeeping office according to the form № 2-PIT, approved by order of the Russian Federation Tax Ministry)
• A document issued by the employer, containing information about the kind of company, the responsibilities of the Borrower, the date of his entering on duty and the amount of his salary
Documents on the company in which you have your own shares / stakes in the authorized capital
• Copies of constituent documents (statute, contract, certificate of registration), sealed by the company
• Copies of balance sheets (a copy with the stamp tax, certified by the organization) for a recent quarter and 2 annual reporting period
• A copy of the book of receipts and expenditures and business transactions for the previous 2 calendar years (income statement)
Entrepreneurs without legal entity provide
• A copy of the certificate of registration of an entrepreneur, necessary licenses to engage in professional activities
• Tax returns for the two preceding calendar years and the last quarter of this year (on income of individuals / by a single tax paid in the application of UPDF), or evidence of payment UTII
• A copy of the book of receipts and expenditures and business transactions for the previous 2 calendar years
Private notaries, detectives, security guards and others not employed under an employment contract party provide
• Proof of the right to engage in professional activities (licenses, notaries - the document issued by the Justice and Empowerment confirmation) for the current and previous years
• A copy of the book of receipts and expenditures and business transactions for the previous 2 calendar years
• Proof of income and tax returns for last two calendar years and the last months of this calendar year
If you have income from leasing property
• The contract of employment premises
• Tax returns for last two years and the last months of the current calendar year (№ 2-PIT, № 3-PIT)
Information about the Borrower’s assets
• Copies of documents confirming the existence of real estate property (ownership certificate, a contract of sale, contract for transfer property, barter, etc.)
Documents confirming the ongoing obligations of the Borrower
• Copy of the commercial hiring of an apartment (if available)
• Copies of credit contracts (loan agreements, purchase and sale with deferred payment) with extracts from the accounts of the credit granted
• Copies of loan agreements with extracts from the accounts of the credit granted and copies of financial documents confirming the fulfillment of obligations (Lender reference)