After the signing of the preliminary contract, the time has come to prepare the file to apply for a mortgage. Whether you need bank financing for all or part of a purchase, there are some essential steps, which are detailed below.
Required documentation for a French mortgage request
To organize your funding request, several essential documents are required. Indeed, you will need to pull together a complete « file » which must be made up of personal and professional information:
- Documents relating to your personal situation such as identity documents or your family record book;
- Documents relating to your employment situation, such as your employment contract and pay slips; if self-employed, typically three years of tax returns are required as French banks take an average of income over that duration.
- Finally, documents relating to the state of your finances, in particular bank account statements, or the details of your outstanding loans (depreciation schedule, credit agreement). Three months of statements are typically required. Proof of origin of funds for your deposit is also required – French banks do not like this being from another loan, or an equity release operation. Speak to your mortgage broker about this.
All of these documents provide a complete basis for evaluating your borrower profile. It is thus possible to refine your need, and to provide you with an adapted proposal.
In addition, a medical questionnaire is often required. Depending on the amount borrowed but also the age of the borrowers, it can be more or less detailed. It allows lenders to know the antecedents and to evaluate the health risks of each borrower, so that the bank can request an ad hoc insurance.
Key events in processing a French mortgage request
First highlight of this credit file preparation period is the filling out of all the information documents, as well as the medical questionnaire. This phase of research and supply of the necessary documents is the longest, because it is necessary to gather some information that you do not always have readily available. However, thanks to the service of your mortgage broker, you only have one file to complete for potentially multiple presentations.
Indeed, by having recourse to a mortgage broker, you centralise your approach to find the best loan with several banks. Only one file is then sent to our banking partners who can accompany you. You save time and effort by gathering the necessary documents only once. If you are not a French tax resident, your broker will also ensure only to apply to banks receptive to non-resident applications and will hand picked the best-placed and most receptive bank.
Most French mortgages are subject to obtaining life insurance to cover the balance outstanding in case of death or permanent total disability. Your mortgage broker will assist with this step too. The cost of this increases with the buyer’s age and any possible medical conditions. It’s best to address this point early on if complications are anticipated.
The 5 Steps of the Property Purchase Process in France :
- Searching for a property in France and a French real estate loan
- The signing of the preliminary sales contract for purchase of French property
- The financing request & preparation of the credit file for a French mortgage
- The mortgage offer in France
- The deed of sale & signing preparation for purchase of French property