The 6 best reasons to get a Loan Pre-Approval for your French Mortgage

1. Getting a formal pre-approval letter from French Mortgage Xpress can tell you the maximum a lender is likely to loan you for your new French Mortgage, which will help you narrow down your property search to within the price range you can afford.
2. You can get an idea of what your monthly re-payments will be for your French Mortgage on your new property in France.
3. You’ll have more credibility with the real estate agents and with vendors if your French Mortgage is pre-approved. Some agents won’t take you seriously until you have the pre-approval. They don’t want to waste their time, or yours. If you’re making a special trip form the UK this is vital.
4. French Mortgage loan approval takes time. If you wait to apply for a French Mortgage after you’ve actually made an offer, you could lose out on the property to someone else who already has the finance in place or has their French Mortgage pre-approved.
5. The lender can often lock in an interest rate, which protects you if rates rise while you are looking for your new property.
6. Pre-approval gives you at least some peace of mind, which you will appreciate during the often stressful process of buying a home, especially one in another country.

Don’t confuse loan pre-approval with pre-qualifying for a French Mortgage. Lenders will often pre-qualify a would-be buyer based on what you tell them about your income, employment and basic credit information, like how much you currently owe on credit cards or other loans. The lender is not agreeing to loan you money or committing to an interest rate. But the process can tell you whether it makes sense to move forward in your home search.

Loan pre-approval is a more formal process. You’ll need to provide your Independent French Mortgage Broker a lot of information about yourself, especially about your income and outgoings and general spending and saving habits.

If you get pre-approved for your French Mortgage, you’ll receive a letter telling you the maximum loan you can get and some sample interest rates you could qualify for.

The 1st step in arranging this Pre-Approval letter is to complete the on-line French Mortgage Quote Request Form or give us a call on +33(0)4.92.98.80.70

Under the proposed tax scheme, owners would have been forced to pay 20%  of the theoretical annual rent that could be gained from the property to the government.

It was estimated that the move would affect around 360,000 residences, including those owned by French nationals who live abroad but have retained a property in their home country.

Joelle Garriaud-Maylam, one of the nine senators who was at the meeting with President Sarkozy at the weekend, commented: “The president told us he had been convinced the law was a bad idea and has taken a decision to scrap it!”

The announcement is likely to come as a relief to those with second homes in the country, as non-resident property owners already pay two taxes to the French government.

In the recent Knight Frank Global House Price Index, France was the best-performing European nation, reaching sixth position in the table of 50 countries after its property prices registered annual growth of 8.7 per cent.

Well, if you can answer YES to the following questions then we’d like to talk to you about your options for an equity release on your French property.

1. Do you have a joint or single income of over €100,000?
2. Is the proposed equity release no more than 50% of the property value?
3. Do you have existing savings, investments etc of more than €150,000

French Mortgage Equity Release Mortgage rates:
Standard variable equity release: loan 20 years and an interest rate of 3.95% variable or 4.5% fixed
Interest Only equity release: loan 15 years and an interest rate of 4.2% fixed

A good French Mortgage Broker will be able to source a wide range of French Mortgage deals on your behalf, and will then put forward the ones that offer the best value in terms of interest rates and monthly repayments to suit your specific needs. All you have to do is complete one simple application form, which saves you the hassle of having to complete an application form for each bank in which you are interested.

An established French Mortgage Broker will already have formed links, contacts, and relationships with a wide range of French Mortgage lenders. The broker will therefore know which lenders would cater best for your particular needs. The team at French Mortgage Xpress has regular meetings with the various bank personnel and this in turn helps to speed up the application process and overcome any potential delays. Again, vital if you’re in another country and buying in France.

Using a local French Mortgage Broker is a great way to get a good value, affordable French Mortgage that is tailored to meet your needs and circumstances. It is also an excellent solution to getting a good French Mortgage deal without having to put in the hard work yourself.

French Mortgage Xpress has been operating it the South of France for over 6 years. The personal relationships we have built up with all the major lending banks in France offers the purchaser a huge advantage when looking for a French Mortgage. Being on the ground and having the ability to speak and meet the lending bank personnel undoubtedly helps to move the application forward at a greater speed.

Consider appointing your own English-speaking notary to coordinate the transaction

Step 2
You will sign the Compromis de Vente (sales agreement), ensuring that it contains the ‘Clause Suspensive’ stating that the purchase is dependant on the obtaining of a French Mortgage. If the bank declines the loan then all monies including the deposit will be returned to the buyer in full. There will be a time limit for applying for the French Mortgage stipulated in the ‘compromis de vente’. Normally this is around 30-45 days.

Normally the date set for signing of the title deeds of the property are set around two months after signing the compromis de vente. This is the time it takes for the notaries and the authorities to take care of all the due diligence procedures associated with transferring the title deeds of a property.

It is important that the financial details of the operation: the loan amount, the name of the lending bank, the French interest rate and the length of the French Mortgage are defined in the compromis de vente to avoid problems later. In many cases we suggest you fax a copy of the compromis de vente to French Mortgage Xpress so that we can ensure that the financial details of the purchase are correctly defined to protect your interests.

If you do not intend to obtain a French Mortgage, you are expected to write in your own handwriting that you intend to give up your rights under the law. This is not always wise, since should you subsequently decide to obtain a French Mortgage, and fail, then you will lose your deposit.

French Mortgage Xpress will describe the different types of French Mortgages available to you and will help you to select the best type of mortgage based on your circumstances and the banks’ lending criteria. French Mortgage Xpress will send you a quotation to give you an indication of your monthly payments on the French Mortgage and will ask you to provide some basic financial details.

At this point you may wish to appoint your own notary to oversee all aspects of the transaction. Contrary to many reports, the appointment of your own notary does not incur any extra costs. French Mortgage Xpress can recommend English-speaking notary services at no extra cost to the purchaser.

Be wary of signing a compromis de vente without the escape clause in the event of your mortgage not being approved.

Step 3
You complete the lenders application form provided by French Mortgage Xpress for your French Mortgage along with a medical questionnaire and send it to French Mortgage Xpress together with photocopies of the supporting documentation required.

The application form and medical questionnaire will need to be returned in original form along with photocopies of all of the other documentation required.

Use the French Mortgage Xpress checklist of documents to be provided. The more complete the documentation, the faster your French Mortgage can be processed.

Step 4
French Mortgage Xpress staff check all documents and will confirm receipt by e-mail/fax and advise you of any documents still to be provided. French Mortgage Xpress then passes the documents on to the lending bank for a “first reaction.”

French Mortgage Xpress at this point can arrange the opening of a French bank account.

Step 5
The lending bank will provide French Mortgage Xpress with the first reaction. This usually consists of a conditional approval subject to the obtaining of any missing documents from the original list. French Mortgage Xpress conveys this report from the bank to you.

Step 6
You supply missing documentation (if any) to French Mortgage Xpress, which is passed on to French bank. The dossier, once complete, then proceeds to the French bank’s lending committee for final approval.

Step 7
At the same time the bank will authorise an independent evaluation of the property to be purchased. It will be necessary to coordinate with the owner/real estate agent for the independent evaluator to access the property.

Make sure French Mortgage Xpress has the contact details of all the relevant parties in the transaction in order that we can short-cut any potential problems.

Step 8
Within 10 days of receiving all the required financial information, the lending bank will be able to give a decision on your French Mortgage application. Often the response is “Yes” – subject to medical insurance.

Step 9
Once all the medical formalities have been taken care of, the French Mortgage offer will be issued and sent by post usually to your normal address. A duplicate will be sent to your notary so that they can start drawing up the final documents for the title deeds. The notary needs a copy of the French Mortgage agreement before he/she can draw up the final documents and will at the same time be able to calculate all the notary fees including the land registry fee which is a percentage of the French Mortgage loan amount. The notary will be able to tell you the exact amount of these fees at this stage you should be ready to pay them by a French bank cheque on the day of signing.

Make you’re your local GP completes the medical forms provided by the bank. Most medical officers representing the banks will not accept medical information more than three months old.

Step 10
Once you receive the loan offer, contact French Mortgage Xpress who will give you precise instructions on how to complete the acceptation letter and answer any questions you may have about your new  French Mortgage. Remember, under French law, there is an 11 day cooling off period before you can legally accept the bank’s loan offer for your French Mortgage.

Step 11
The loan acceptance offer has been returned to the French bank. The bank will transfer the funds you have borrowed to the notary usually in the 48 hours preceding the date set by your notary for signing the final act. You will arrange for the transfer of the down payment plus notary fees to the notary’s account. The notary is responsible for informing you of the precise sums. Make sure you leave sufficient time for the funds to arrive in the notary’s account; especially if the funds are being sent from abroad. You may wish to use the services of a specialist foreign currency provider to obtain the best exchange rate. French Mortgage Xpress can advise you on this issue.

Ask French Mortgage Xpress for advice on currency exchange and transfer procedures.

Step 12
Congratulations! Finally you sign at the notary’s office. Be prepared for a minimum of two hours at the office. Usually a translator is provided for a small fee, payable to the notary by French bank cheque on the day. It may also possible to sign by proxy; you should set up this arrangement well in advance with your notary.

Note:
Your first French Mortgage repayment will come from a direct debit you have set up with a French bank. Within six weeks the bank will also draw down any bank arrangement fee as stated in the loan offer (usually between 700 and 1200 Euro). You should make sure there are sufficient funds in the French bank account to cover both the first monthly payment and the bank’s arrangement fee.

Remember your property is at risk if you do not keep up your French Mortgage payments!

Once such French Mortgage Rate is a 3.90% with a 30% down payment.

Terms:

• Minimum loan amount £100,000
• 7-15 year term
• A fixed term is possible of up to 8 years with a rate of 4.30%
• For a more detailed explanation call our team now on: 33(0)4.92.98.80.70 or simply complete the ‘Request a Quote‘ form

* Details of purchaser and seller (you will need to provide “Civil Status” information including your full names, contact details, professions, birth and marriage certificates, passport copies.

* Confirmation of the name and ownership – ‘Title’ details of the property.

* A description of the property including reference and a map of the plot as it is recorded in the Land Registry of your local the Commune.

* The price agreed (sometimes furnishings and fittings may be negotiated as a separate amount).

* The deposit agreed – usually 10% to be held by the Notaire usually or in some cases the agent.

* The circumstances under which the deposit may be forfeited.

* Some declarations by the vendor about the property.

* Some obligations of the purchaser in buying the property.

* Arrangements for inspection of lead, asbestos and termites.

* Provisional conditions (Clauses Suspensives) – these will include certain standard conditions which will be inserted by the person drawing up the agreement (e.g. that there are no other claims to the Title or that the searches conducted by the Notaire’s office do not reveal any problems). NB: The purchaser can request and negotiate the insertion of additional provisional conditions before the Compromis is signed e.g. complete minor building work, install new windows or service the swimming pool pumps.

* Full details of the estate agents fees and provision for legal fees.

* Various declarations by both purchaser and vendor about their ability to complete the contract.

* Statements describing what happens if either side fails to complete his part of the bargain, e.g. penalty clauses.

* The target completion date (note this is not definitive or guaranteed and can be changed by agreement between purchaser and seller or if the notaire has not completed his work for any reason).

*Inventory of items to be included in the price.

Understanding the Compromis de Vente

As a purchaser of a French Property it is essential that you understand every aspect of the Compromis de Vente. It sets out all the key terms of your purchase. It is recommended that you see an English translation or have the services of an English speaking adviser. This might be the Notaire or another legal adviser

All points within the agreement are important but particular attention should be focussed on the price and costs, the details regarding the Title and Land Registry Information, the Provisional Conditions (if these cannot be met you may be entitled to withdraw from the purchase) and the Declarations made by the Vendor.

Seven Day Cooling Off period
Note that under ‘La Loi SRU’ you will be given a seven day cooling off period during which time you can withdraw from the purchase without penalty. This period runs from when you receive a copy of the signed Compromis and you will generally be given an instruction about this period and the date before which any change of mind must be communicated in writing to the Notaire. If you are considered to be a property professional you may not be entitled to this cooling off period so obtain further advice first if you think this may apply to you.

After signing
Once the Compromis is signed the Notaire (who acts for both parties under French law) will carry on the process of checking records and documentation regarding the property and land. Two to three months is generally allowed for this process but it is possible to move more swiftly if both parties are agreed and the Notaire is able to conduct documentation searches without delays.

Completion date
Note that the completion date shown in the Compromis is a ‘target date’ which will allow you to plan removals, money transfers from the UK and other important elements, however, the date will need to be re-confirmed as completion draws nearer. The completion date is the date when both parties will attend the Notaire’s office to sign the Acte Authentique (or nominate a proxy, an alternative person, to sign on their behalf).

Note : During the period between signing the Compromis de Vente and signing the Acte Authentique (or Acte de Vente) it is advisable to keep in touch with your agents and the Notaire to keep a check on progress. Don’t rely on them to tell you what is happening.

3 Great reasons to contact French Mortgage Xpress:

1. Low, low French mortgage interest rates
2. Bottomed out property prices
3. Quick and easy French Mortgage quote request forms

What are you waiting for?  Call us now or complete the ON LINE QUOTE REQUEST FORM.

French Mortgage Xpress are actually based in France, located in the medieval village of Valbonne about 10km north of Cannes and Nice on the French Riviera. Being based in France give us great local knowledge and direct access to the French banks. We guarantee a fast, efficient and professional service – you receive a quote within 1 working day and we’ll get you a decision in principle within 7 days.

It couldn’t be easier – CALL US NOW: Talk to Matt or Gael in the office on +33(0)4.92 98.80.70

You will sign the Compromis de Vente (sales agreement), ensuring that it contains the ‘Clause Suspensive’ stating that the purchase is dependant on you obtaining a French Mortgage. If the bank declines the French Property Mortgage for any unforeseen reason, then all monies including the deposit will be returned to the buyer in full. There will be a time limit for applying for your French Mortgage stipulated in the ‘compromis de vente’, normally this is 10 days. This is the time in which you have to submit your French Mortgage application to the lending bank via your Independent French Mortgage Broker – you then have around another 30 days to have the French Mortgage offer in place.

It is important that the financial details of the operation: the loan amount, the name of the lending bank, the interest rate and the length of the French Mortgage are defined in the compromis de vente to avoid problems later. In many cases we suggest you fax or scan a copy of the compromis de vente to French Mortgage Xpress so that we can ensure that the financial details of the purchase are correctly defined to protect your interests.

If you do not intend to obtain a French Mortgage on your property, you are expected to write in your own handwriting that you intend to give up your rights under this law. This is not always wise, since should you subsequently decide to obtain a French Mortgage, and fail, then you will lose your deposit. If, however, the seller will only consider your offer without you having recourse to a French Mortgage, then French Mortgage Xpress can advise you on how to proceed by pre-approving your loan application to significantly lessen the risk of losing your deposit.

This is a very important area of your Compromis de Vente - we highly reccomend this is included in EVERY FRENCH MORTGAGE APPLICATION – if you have any questions please contact us to discuss this further on +33 (0)4.92.98.80.70 or email us info@frenchmortgagexpress.com

3.15%

80% LTV
Standard Repyment

4.40%

85% LTV
Capped

3.25%

70% LTV
Yachtie Mortgage

3.60%

80% LTV
Fixed 5 years