How to get a mortgage loan through an online bank? Traditional banks with agencies are no longer the only ones to offer attractive home loans. With their completely dematerialized operation, online banks are increasingly popular with those who wish to apply for a mortgage, especially when the project is simple.
Do you also want to take advantage of a home loan via an online bank? So keep reading to find out how to get a mortgage on advantageous terms via an online bank!
Why use an online bank to apply for a mortgage?
Given the absence of intermediation and the great accessibility of online banking services wherever you are, using an online bank to obtain a mortgage is often faster, simpler, cheaper, and more transparent. This is why this approach is attracting more and more French people looking to finance the purchase or renovation of their property.
What are the specificities of a mortgage loan from an online bank?
One of the first specificities of the real estate loans offered by online banks concerns the complexity of the real estate project accepted. Online banks tend to finance simple and standard real estate projects such as the purchase of a primary or secondary residence.
How to get a mortgage loan through an online bank? If you want to take advantage of a zero-rate loan, a bridging loan, a new off-plan purchase (VEFA), a rental investment aimed at a tax exemption system, or financing for individual construction, for example, your request could be refused in most online banks.
Online banks generally do not require as large a minimum deposit as traditional banks. While the latter requires a personal contribution of around 10% of the loan amount, online banks generally only require an amount to cover acquisition costs, which include notary fees, agency fees, and warranty costs.
Another important specificity of loans granted by online banks concerns the minimum amount of the loan. Some online banks impose a certain minimum amount to borrow which may be beyond your budget. Others, on the contrary, will offer loans with limited amounts which may be below what you are looking to borrow.
While traditional financial institutions often charge an application fee to complete your loan application, usually ranging between 0.4 and 1% of the total amount, it is not uncommon to find online banks that offer this application fee to stand out and attract more customers.
Finally, be aware that financing via an online bank is often adapted to specific borrower profiles and that it is not possible to negotiate the conditions for obtaining a loan as you could do with a traditional bank.
Do you want to know how to choose the right loan for your project? There are several criteria to take into account, the conditions of which may vary from one bank to another. This is why it is important to consult the general information on the characteristics of the mortgages available to compare the offers in order to choose the best!
What criteria to monitor to choose the best loan offer?
Interest rate
Often one of the most important elements for borrowers, the interest rate corresponds to the price to pay to have the possibility of borrowing a certain sum. This rate can be fixed or variable. The interest rate should not be taken into consideration alone, because other elements are important such as the duration of the loan or the possibility of early repayment, for example.
Term of the loan
The loan repayment term represents the period you will need to repay the principal borrowed (plus interest and miscellaneous costs). This duration varies according to several criteria such as the amount borrowed, your repayment capacity, or the interest required by the financial institution you use.
Minimum borrowing amount
Many online banks require you to borrow a certain amount. The level of the minimum sum to borrow may not correspond to your project, which may be a hindrance to your financing.
Early repayment indemnities
It is always possible to prepay your mortgage and the lender cannot refuse you such action. However, you may have to pay a fee to compensate for this shortfall depending on the length of the loan remaining to be repaid.
Repayment Terms
You should also take into account the overall repayment terms granted to you such as financing facilities for repayment, pause in repayments, adjustment of monthly payments, etc.
Personal contribution requirement
Although many online banks do not require a down payment, they may offer better terms if you have a down payment. It should also be noted that even without a personal contribution, you must be able to finance the so-called acquisition costs.
Miscellaneous costs
There are many fees you have to face when applying for a home loan. Some banks charge an application fee or want you to have a bank account open with them so they can lend you money (there may be an account opening fee). You must also take into account the costs of borrower insurance or various guarantees.
How to get a mortgage loan from an online bank? Best Practices
Have a stable professional situation
Your professional profile, as well as the income you earn, is important when the bank analyzes your loan application, as it has a direct influence on your ability to repay your loan. This is why it is preferable to have a stable professional situation before applying for a loan to provide more guarantees to the bank.
Provide a personal contribution
Even if some online banks do not require a personal contribution, it is preferable to arrive with a contribution to offer a more solid file and send a positive signal to your bank concerning your seriousness and your future ability to repay.
Strengthen your savings
Strengthening your savings can allow you to build up your personal contribution to avoid getting into too much debt. Your savings do not necessarily have to be used for your contribution. It is also preferable not to devote all your money to your credit. In addition, if you manage to save it means that you manage your personal finances well (no overdraft, no payment incidents, etc.), which is positive for your loan application.
Assess your creditworthiness
Before you start applying for a mortgage, analyze your financial situation to assess your solvency and your ability to repay according to your debt ratio (ratio between the financial charges related to your loan and your income). Generally, the debt ratio should not exceed 33% of your income.
Disclaimer:
All of our information is, by nature, generic. They do not take into account your personal situation and do not in any way constitute personalized recommendations with a view to carrying out transactions and cannot be assimilated to a financial investment advisory service, nor to any incentive to buy or sell instruments.
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