The French Mortgage Process | Spectrum French Mortgaes

The Mortgage Process

This step by step guide will help you anticipate the delays you will be facing. It really sets in motion once you have identified the property of your choice and signed the “compromis de vente” – the sales contract with the vendors.

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STEP 1

Decide on the best suitable mortgage option for your project

Once we have discussed your future project and current financial situation, we will able to discuss solutions. It is important you give us all the necessary information.

“Jo and I are extremely grateful for all your help in the lead up to this day. What could have been a complicated process has been made quite simple thanks to your support and timely advice, thank you”. Mark & Jo S

There is no point in us showing you a variety of products and rates French banks offer if they do not match your project and situation, hence we need to understand your needs before making any proposals.

STEP 2

Build your mortgage request

We will forward you the list of paperwork needed to submit an application for a French mortgage. Although we understand the complexity of obtaining certain documents, we cannot stress enough the importance of submitting a clear and complete file to the banks.

Sending incomplete information to the banks underwriting departments will only cause confusion and additional delays. We will help you keep track of what is missing and submit a full presentation to the banks, in French, once we know this will satisfy their documentation criteria.

STEP 3

Underwriting process

In general, once your file is submitted to the underwriting department, we will get a first feedback within about 1 week. According to the amount requested, some bank agencies have the possibility of approving your request without submitting it to the higher loan committee. However for higher loan amounts, there are undeniably different steps we need to go through.

“The lady who owns the Estate Agency wants me to pass on your contact details. I said you are the best part of this whole transaction and they we were very impressed. I assume you will have no objection” Ezad

• Due to years of mortgage brokerage experience, we have managed to negotiate dedicated and quick underwriting access, in order to expedite our client’s applications.

STEP 4

Life Insurance

While the mortgage is being approved financially, we will also assist you in organizing life insurance. It is obligatory in France to have life insurance to cover the value of the mortgage, which will allow it to be repaid in case of death. Depending on your age, amount of mortgage requested and state of health, there might be some medical formalities to undergo. Costs of requested medical examinations will be reimbursed by the insurance provider (up to certain amounts). Remember to keep the bills!

STEP 5

Mortgage offer

With both financial and insurance approval, it is now time for the bank to send you the mortgage offer, by DHL to your home address. A 10 day cooling off period will start from the day you receive the offer at home (see also “Loi Scrivener 2” in the glossary). You will need to wait for the 11th day after the receipt of the offers before accepting and sending the documents back to the lender.

Along with the mortgage offer acceptance will be included a direct debit form to complete. In fact, in order to pay the monthly installments of your new mortgage, a French bank account will be needed. Some lenders will allow you to choose the bank of your choice; some others will require the bank account to be held with them. In any case, we are here to assist you.

STEP 6

Completion time!

You have sent the mortgage offers back; the notaire and the bank will now get in touch to set up the date of completion. One of the duties of the notaire is to register the bank’s warranty on the property. These fees are estimated as part of the notaire fees. Check out the GLOSSARY to get familiar with all this new mortgage vocabulary.

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