Have you made an offer for housing and are facing loan refusals from one or more banks? Do not panic, several solutions are available to you to help you make your real estate purchase a reality if your bank refuses to follow you. So how to react after a loan refusal? How to find another mortgage to buy the home of your dreams? Here are our tips!
What to do in case of refusal of your mortgage?
The bank refuses your loan request ? Don’t let this get you down and adopt a more positive dynamic straight away because, even if the bank does not have to justify a loan refusal , you can find out what aspects of the file were blocking. Is it the debt ratio? The level of contribution? A bank overdraft? This step is important since all banks do not have the same award criteria. This return from the bank then allows you to improve your file, and thus increase your chances of obtaining your mortgage.
The overdraft: often prohibitive to obtain a loan
Indeed, for some banks, the bank overdraft is a prohibitive element for obtaining a mortgage. Other banking establishments are less observant, and favor an analysis based on other data from your borrower profile.
The condition precedent for obtaining a mortgage
The compromise or the promise to sell generally includes a condition precedent for obtaining a mortgage. If the buyer does not obtain financing, the sale cannot be completed. However, proof of one or more bank refusals must be presented.
Why do banks refuse certain files?
You will understand that certain elements of the file can be causes of loan refusal. Bank overdraft, and more broadly account management, implies the presence of agios, which highlights poor management of your accounts to your advisor. But it is not the only reason.
A debt ratio exceeding 33% is another, as is the level of savings, the rest to live after mortgage, the level of contribution, professional stability or the health of the borrower … In other cases, the usury rate may exclude certain profiles (borrowers with health risks for example).
Professional stability is a key element in taking out a home loan. The bank will indeed use your income to establish your borrowing capacity according to a threshold that it cannot necessarily exceed: 33% of your income. But it doesn’t stop at your debt ratio or the amount of your salary.
What also interests the banker is your type of employment contract. Are you on a permanent contract? Are you a veteran of the company? Has your trial period been validated? So many questions which will reassure or not the banker who evaluates the interest rate and the granting of the mortgage according to the risk factor. If you are self-employed or have a fixed-term contract, you must demonstrate your stability for at least two years. But if you are in this situation, getting a loan can be more complicated, especially if you are borrowing on your own.