In order to obtain real estate financing, it is necessary to show credentials. Debt rate, remaining life, savings capacity… many elements have an influence on the meaning of the decision taken by the bank contacted. The financial situation and risk profile of borrowers are also of great importance, and are studied through household account statements. The list of 5 expenses to avoid to obtain your property loan without difficulty and under the best conditions.
Expense #1: payment incidents
During each real estate loan application, banks request the transmission of the last three bank account statements of borrowers. The objective? Spot certain red flags, particularly fees linked to payment incidents. Intervention fees, direct debit rejection fees, prior information letter before check rejection… numerous lines can appear on current account statements in such a situation.
For Cécile Roquelaure, spokesperson for Empruntis, “you must show that your finances are healthy, that you are not in the red and that there is money left in the account at the end of the month”. Frequent and/or significant payment incidents may thus raise fears of a risk of non-payment of the monthly payments of the future real estate loan, and encourage the bank to refuse such a request.
Expense No. 2: consumer credits and revolving loans
Have you taken out consumer credit or a revolving or revolving loan? These are often analyzed with a negative eye by banks, who sometimes see them as a reflection of excessive spending behavior or poor management of finances. It is therefore preferable to repay such loans in advance, in particular revolving credits and consumer loans not allocated to the purchase of a car or work.
Good to know: repaying a personal loan early not only reassures your bank, but also reduces your debt ratio, and therefore maximizes your borrowing capacity.
Expense #3: Gambling
Do you play poker online, at the casino or do sports betting? The bank can analyze these operations as risky behavior and refuse a mortgage loan application. Cécile Roquelaure nevertheless tempers: “Your file is not going to be accepted or refused because of a single thing, except if you really are in the red every month”the key being that such expenses are neither recurring nor too significant.
Expense No. 4: cryptocurrencies
Extremely volatile, cryptocurrencies are a very specific investment category, which requires solid knowledge. Investing large sums or carrying out a large number of transactions on these assets can sometimes be analyzed as gambling, and lead to a refusal of real estate financing from banks. However, this will not be the case for limited investments, for example 20% of the total amount of your savings.
Do you have a habit of spending large amounts on shopping? If this is to the detriment of your savings capacity or if it causes a deterioration in your financial situation, banks may see this as risky behavior. Nevertheless, “if you are a bit of a spender but you still save, you can make a credit report” concludes the Empruntis spokesperson.
