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How to properly prepare your real estate credit file ?

Whether you are an explorer seeking to conquer your first home or a seasoned adventurer looking to expand your real estate portfolio, a mortgage is your faithful ally. It is the magical passport that opens the doors to property ownership, allowing you to turn your dreams into reality.

However, before embarking on this epic quest, it is essential to understand the eligibility criteria, these financial puzzles that may seem intimidating at first glance.

In this article, we have gathered all the essential information to facilitate your mortgage application process with peace of mind. No need to worry, we have simplified the task for you!

Documents Required for Your Mortgage Application

When applying for a mortgage, certain documents related to your personal, financial situation, and your real estate project are essential.

Documents Concerning Personal Situation

Documents related to your personal situation include various types of important proof. This could be, for example, your birth certificate, marriage certificate, identity papers, as well as documents associated with your employment or studies.

In the case of a mortgage application, here are the documents required:

An identity document : This could be your identity card, passport, or any other official document establishing who you are. It's a way to identify you as a mortgage applicant.
Family situation documents : These may include your marriage certificate, birth certificate, or any other document proving your family status. They help the bank better understand your personal and family situation.
A current proof of residence: This document confirms your current address. It could be a recent utility bill in your name, a lease agreement, or a hosting certificate if you are living with someone else. It is proof of your residence and stability and allows the bank to locate you.

Concerning Your Resources and Income

Before diving into the world of mortgages, it is crucial to show a clean slate and prove that you have the necessary resources to repay your loan. Here are the essential documents in this category:

Your last three pay slips : These documents reflect your income from salaried activity. They show your current financial situation and your ability to repay the mortgage.
Last three financial statements for traders, artisans, farmers, and freelancers : If you are self-employed or have a business activity, these financial statements are essential to assess your professional income.
Last three pension or retirement statements : If you receive pensions or retirement income, these documents prove your source of income and financial stability.
Your latest bank statements : These statements provide an overview of your financial transactions, including your income and expenses. They help assess your financial management and your ability to repay the loan.
Two or three latest tax assessments : These documents assess your tax situation and your tax obligations. They provide an indication of your declared income and contribute to evaluating your financial capacity.
Documents attesting to rental income : If you receive income from real estate properties, such as rents, you will need to provide documents justifying this.
Proof of any ongoing credit : It is important to mention all ongoing credits, such as car loans or consumer loans. These documents help assess your level of debt and your capacity to take on new financial obligations.

Your Real Estate Project

Your real estate project is about to come to life! Here are the essential documents to ensure its success:

Sale agreement or promise to sell : These crucial contracts seal your commitment and define the terms of purchasing your future real estate. They are proof of your determination to conquer the real estate kingdom.
Construction plan or reservation contract : If you are building your own home or opting for a new property, these documents are the blueprints of your future fortress. They reveal the architectural details and characteristics of your new home.
Expertise report : If you opt for an old property, this expertise report is your ally. It assesses the condition of the property and informs you of any necessary repairs or improvements.
Estimated cost of works and building permit : If you are planning renovations or works, these documents are your battle plans. The estimated cost gives you an idea of the costs involved, while the building permit is your official pass to transform your home according to your wishes.
Title deed of the property sold (in case of using a bridging loan): If you are selling your current property to buy a new one using a bridging loan, this title deed is your proof of sovereignty over your current property.

Eligibility Criteria to Meet

Among all these documents, how is your file actually evaluated? What are the conditions to meet to obtain a loan? This FAQ will clarify your initial questions regarding your approach to obtaining a mortgage with serenity.

FAQ

Is there an age limit for applying for a mortgage ? Yes: the borrower must be of legal age and under the age of 70.

What minimum income for a mortgage ? There is no set criteria for the income you need to prove. On the other hand, you must be able to justify stable and sustainable income.

Can I borrow if I am temporary? Freelancing ? Certainly yes. On the other hand, you will have to attest to a certain seniority in your current profession (approximately 3 years).

What maximum amount can I borrow ? The maximum amount you can borrow is calculated based on the debt ratio. The maximum debt ratio accepted is 45%. To calculate the budget for your future home accordingly, test our budget simulator. If you want to include the cost of any work in your loan, be aware that banks are reluctant to grant a mortgage for goods that require heavy work (at a price beyond 30% of the price of the property). Your borrowing rate could therefore be increased.

I live abroad or I am of foreign nationality. Can I get a mortgage in Morocco ? Yes: nationality and country of residence do not affect eligibility for obtaining a mortgage in Morocco.

What if I already have a loan in repayment ? Having several simultaneous loans (for example a different loan for works) is possible. However, you must be solvent and up to date with the repayment of your other loans.

How are my resources calculated ? What amounts are taken into account ? Are taken into account: on the one hand, your salary and any rental income (weighted at 70%), as well as your professional profits and dividends; on the other hand, charges such as rents and existing credits.

How can I improve my borrowing file ? In absolute terms, few things depend on your will in the acceptance of your credit application. Let us quote all the same two points which will be appreciated, and which will contribute to obtaining a good loan rate: Little or no overdraft on your bank statements a saving profile (even if it represents only a small sum : it testifies to a thoughtful management of your budget) Also make sure, before starting any process, that you have valid identity papers. The opposite would block any outcome of the process.

Agenz - Data 27 Nov 2023

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