For several years now, the European Union (EU), through the European Central Bank (ECB), has been trying to keep interest rates historically low. Indeed, by keeping key interest rates at their lowest, the ECB encourages private banks to lend to individuals.
However, this policy does not ensure that you will find the best real estate investment by taking out the most interesting loan. Fortunately, if you are well prepared, you can easily invest in a house without any fear.
Everything you need to know about real estate loans
Even before looking for the best possible investment, it is important to know everything about this loan, the repayment of a mortgage or the rate of a loan real estate. Credit is primarily a matter of negotiation between the lending institution (the bank) and the borrower.
In order to be sure that the risk inherent in a real estate loan is not too high, the banker must ensure that the borrower is serious, that his project is viable and that he is solvent of course.
Even if your banking situation is ideal, if you are not well prepared to negotiate your loan you will not be able to make a successful investment.
Why do a real estate credit simulation?
As previously explained, investing in a property requires knowledge of the loan mechanism and negotiation with the bank. To be prepared, it is best to start by doing a free real estate loan simulation to get an idea of your borrowing capacity and the acceptable interest rate.
It is possible to make a free and very fast simulation online on different comparators. This not only allows you to define a realistic investment project, but also to better anticipate the necessary contribution and the cost of the monthly payments of the future loan.
Let a real estate broker negotiate
When one wishes to invest in a real estate, the error is not allowed. Indeed, committing on the long term, the real estate loan is an important step in one's life that must be taken seriously.
To solicit a real estate broker (in physical agency or on line) is a good thing if one fears not being able to negotiate at best or to assemble a good file of loan. The broker is there to find the most interesting real estate loan for his client. As a regular contact with the banks, he is able to obtain extremely interesting interest rates.
Beyond that, he is in charge of putting together the credit application file and guiding his client from the creation of the file to obtaining the credit.
At national real estate brokers, prices vary:
Broker | Brokerage fees |
Best rate | 1% of the loan in agency |
Cafpi | 1% of the loan amount |
Immoprêt | 0.60% of the loan |
Empruntis | 1 000 euros in agency |
However, some real estate brokers offer a completely free online service. It's up to you to decide whether you prefer the physical presence of a paying agency broker or the responsiveness and simplicity of a free online real estate broker.
It appears that to invest in a property in a successful way, nothing is worth a good preparation. Certainly, the economic climate is more than ideal to borrow at lower costs but the investment remains an important event that should not be approached in a too casual way. Ideally, a real estate credit professional will be able to help you realize yourreal estate investment project. Learn more about real estate credit by going here.
Reduce your expenses
In order to optimize your real estate investment and your cash flow, it is important to reduce your expenses. It is true that a good deal is made at the time of purchase but it is important not to forget to negotiate your current bills. It is possible to reduce your electricity or internet bill by using organizations such as Papernest or a good investment consultant.
