Preparing your bank financing:
Jean Christophe Langlais
Posted on 13 / 08 / 2024
2 mins of reading time
Preparing your bank financing: the key to a successful real estate acquisition and strengthening your negotiating power.
Embarking on a real estate project is a major commitment. To maximize your chances of obtaining the property of your dreams and improve your negotiating position, it is crucial to prepare your bank financing well.
Here are some tips on how to build a strong and attractive case for banks, while giving you more leverage in discussions with the seller.
1. Assess your borrowing capacity:
Make an accurate assessment of your income and expenses to establish a realistic budget.
Include all the additional costs (notary, work, etc.) so as not to be caught off guard.
2. Optimize your personal contribution:
A deposit of 20 to 30% is generally expected by banks.
The larger your deposit, the more you reassure your bank and the seller, which can help you obtain better sales conditions.
3. Take care of your bank file:
Gather the essential documents (payslips, account statements, tax notices).
A complete file and sound financial management increase your chances of obtaining a loan at an advantageous rate, which can also convince the seller of your seriousness.
4. Compare financing offers:
Consult several banking institutions to obtain competitive rates.
Using a broker can help you access better deals, strengthening your position when trading.
5. Anticipate the acceptance deadline:
Approach the banks even before you have found your property to anticipate the acceptance deadlines.
A financing plan that has already been validated allows you to respond quickly to an offer, a considerable asset to reassure the seller.
The advantages of a well-prepared file:
Strengthen your credibility with sellers, who will be more inclined to accept your offer, especially in the event of competition.
Obtain more favorable loan terms, giving you leeway to negotiate the price.
Speeding up the buying process, a decisive asset to quickly secure an offer and avoid overbidding.
By carefully preparing your financing, you put all the chances on your side to succeed in your real estate acquisition and get a better price.
