In its article of 26/09/2019, the newspaper Alsace takes into account the time needed to obtain a property loan.
The newspaper points out that, in principle, a borrower has a 45 days to approve financing for a property purchase. But current interest rates, which - we would remind you - are extremely favourable to buying, have longer processing times, sometimes significantly.
Protecting the buyer
When a preliminary sale agreement is signed, it is generally a 45-day deadline which is granted to the buyer to obtain financing. This is the loan condition precedent. If financing is refused, the agreement is automatically cancelled, and no costs of any kind can be claimed from the disappointed buyer.
Other deadlines may be imposed, including a maximum period for contacting the bank or broker. Other deadlines may also be stipulated in the preliminary contract, such as that for compiling the file or obtaining an agreement in principle.
Principle, usual durations and current events
As Alsace reminds us, "In some banks, you have to wait between three weeks and two months, while in others a week is enough. It is advisable to include a period of 45 days in the preliminary sales agreement, or even to negotiate 60 days.
Alsace Conseil Courtage agrees with this analysis. Indeed, the historically low rates are encouraging buyers to apply for a loan to take advantage of this windfall. With rates of around 1% for the longest terms (depending on the quality of the applications submitted), some establishments are being swamped by applications and are announcing processing times of up to 6 weeks !
The broker is the key!
In this context, the management of your financing file by a broker becomes essential. As a broker, we are not only mandated to negotiate your interest rate, but also to make the necessary arrangements for you.interface between the various parties involved in the case : vendor and estate agent, notary, bank, .... We take care of notifying and coordinating the various parties involved and informing them of the deadlines. In addition to negotiate the best termsWe help our customers to dunning management to ensure that your case is processed quickly.
If the current interest rate conditions mean that it will take longer to process your application, it's probably worth making a little sacrifice while you wait for your loan offer!