- 1). Research the available options in advance, before bidding for properties. Estate agents in France should be able to put you in touch with mortgage brokers who can explain the intricacies of the French system.
- 2). Plan your budget. Most banks in France require a deposit of 15 to 20 percent of the purchase price. Remember that a bank will not usually grant a loan for any more than one-third of your net salary or income, after deduction of all other debts and outgoings. If you are arranging the mortgage for a second home, the bank may also ask for details of payments that you are making for your main property.
- 3). Open a French bank account if you have not already done so. Some banks insist on you making the repayments from a French bank account.
- 4). Investigate the different types of loans. You may prefer to arrange a fixed-interest rate loan that will give you peace of mind regarding repayments in the future. The interest rates on variable rate mortgages tend to be lower, but if the interest rate rises, your payments also increase. Some French banks also offer fixed payment loans, where the monthly payment is fixed, but the interest rate is not. If the interest rate increases or decreases, the bank adjusts the amount of the mortgage, but your monthly payment remains the same.
- 5). Remember to check that your lawyer has included a suspensive clause into the "Compromis de vente" (sales contract) to allow you to get out of the contract if you are unable to obtain a satisfactory mortgage.
- 6). Complete the paperwork to apply for the mortgage immediately after signing the sales contract. The bank requires a signed copy of the Compromis de vente.
- 7). Scrutinize the mortgage offer carefully when you receive it. French law provides you with a 10-day cooling off period to consider whether to proceed. If you wish to go ahead, you must sign the paperwork within 30 days, or the offer will lapse.
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