Acquiring real estate is a long and challenging process. It's a significant step in your life, so being prepared to achieve your goals as smoothly as possible is crucial. Let's look together at the steps that define the purchase of real estate.
Defining your budget
First, it's important to clearly define your purchase budget. This includes the purchase price of the property as well as acquisition fees. You must absolutely evaluate your borrowing capacity over time to be able to repay your monthly installments throughout your mortgage. It's necessary to calculate your debt ratio. This is set at 33% of the buyer's income and limits the risk of over-indebtedness.
For the bank, it's important to know if you have a stable and constant financial situation. It is advised to approach the bank for a loan application with a permanent contract and good management of your accounts. If you have been performing the same activity for more than two years, you also have a better chance of obtaining your loan. Do not hesitate to know your purchasing capabilities thanks to these various free tools without commitment:
- Estimate your borrowing capacity
- Calculate your notary fees
- Simulate your eligibility for a zero-rate loan
Do not underestimate the importance of personal contribution, it's one of the necessary conditions for obtaining your loan. In most cases, it represents at least 10% of the total cost of the loan. The higher your contribution, the more advantageous your bank's conditions will be. Think about keeping part of your savings, as unexpected works can always arise.
Searching for the real estate
Start by defining your expectations and the criteria of your future home with one of our advisors. Don't forget to register your request with our agency and activate alerts for new properties for sale on the market. This will prevent you from missing out on an apartment or chalet that suits you.
Before your housing visits, think about preparing a list of questions (heating, local taxes, charges, garbage, etc.). Once you are sure you want to acquire the real estate, you will have to write a purchase offer. This must mention the fixed price and the conditions of acquisition (with financing, various clauses...). Your real estate agent will assist you with this.
You can always try to negotiate the sale price if you have good reasons like anticipated works or a problem to be solved. We are here to advise you on the offer price. It's important not to frustrate the seller in the case of significant negotiation.
Signing the sale agreement
This step starts by validating your purchase offer. Once validated, you will sign a purchase promise or a sale agreement. It's the promise of sale that defines the moment when the seller and the buyer definitively commit to the transaction.
After signing the agreement, you have a 10-day cooling-off period starting the day after this document is presented. It is very common that a deposit of 5% of the sale price is requested to confirm your desire to buy. If you decide to withdraw, the amount paid will be fully refunded to you.
Know that you have a period of 30 to 60 days to have a financing offer. Generally, the authentic deed of sale is signed 3 months after the signing of the agreement.
Securing your financing plan
Obtaining a financing plan is the most stressful step for a buyer. The real estate market is very complex, so it's necessary to be aware of several elements to get a loan under the best conditions. When searching for a financing plan, some people prefer to approach their bank alone while others seek the help of a mortgage broker. When borrowing, the support of a mortgage broker provides access to numerous advantages:
- They assess your situation and reassure you about the realization of your project. They look for the best financing and present a good file to banks.
- The broker knows what rate to negotiate given your personal situation. In most cases, they obtain a credit rate lower than what you would have negotiated.
- They save you significant time, as they compile with you a single financing file. They are able to present it simultaneously to several banks.
- The broker has mastery of all aspects of your real estate project. They can also advise you on borrower insurance and negotiate handling fees.
Signing the authentic act with the notary
The final step of this long journey orchestrated by your real estate agent consists of signing the authentic act at your notary's office. It's them who will hand you the keys to the property and provide you with a real estate ownership certificate. They now send the authentic act electronically immediately after the authentic signature.
Note that notary fees are about 7 to 8% for an old dwelling (already inhabited) and 2 to 3% for a new property. The notary collects the amount of the transaction price and acquisition fees. They will subsequently pay what is due to the seller within 21 days.
ACM Immobilier advises and guides its clients so they can find the property that matches them, see their dream chalet or apartment! Since 1979, we are at your disposal in supporting your purchase project. We would be very happy to help you in one of the most important steps of your life. Discover our listings in Les Gets station and our exceptional properties.
