What documents must be provided for a mortgage loan buyout?

Before giving a favorable opinion or rejecting the request, the lender seeks to know you. Civil status, repayment capacity, debt ratio: what are the supporting documents to be provided for a credit buy-back?

The documents for a repurchase of mortgage as for a grouping of personal loans are numerous. They allow banks to know what borrower profile they are facing.

This data is essential in the analysis made by the bank advisor and therefore largely determines the financial conditions which will be granted. Note in passing that a complete loan buyback file will be processed quickly for an accelerated response.

It is therefore in your best interest to prepare the supporting documents beforehand so that the redemption of credits becomes a study commission. What are they ? Identity, place of residence, income and bank accounts: their number and their nature vary according to personal, professional and patrimonial situations.

What documents to provide for a mortgage loan repurchase?

What documents to provide for a mortgage loan repurchase?

There are a wide variety of documents to provide. Depending on the type of loan you wish to take out or on your family and professional situation, the supporting documents to be provided are different.

Important: do not hesitate to ask your contact, banker or broker, for the list of documents to provide. Indeed, there may be some differences between financial institutions.

Administrative documents

Among the supporting documents for the repurchase of credit, the lending establishment is obviously interested in your identity and your family situation. For the checks to be carried out, the file must contain:

  • a front / back photocopy of the valid identity card or passport (the lender will normally ask to see the original of your proof of identity as a supplement);
  • a photocopy of the family booklet (including the pages relating to the last child);
  • in the context of a marriage or PACS, a photocopy of the marriage contract, if applicable, or of the civil solidarity pact;
  • following a pronounced divorce, a photocopy of the divorce decree;
  • within the framework of a real estate civil society (SCI), the statutes of the company.

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Proof of income

To analyze the feasibility of the request to buy back credit, the lending organization studies the cash inflows in order to establish a borrowing capacity. Depending on their status and activity, the applicant must therefore submit the following documents:

For employees:

  • the last 3 pay slips (including the one for the last month of December in order to record the end-of-year bonuses),
  • the last 2 tax notices,
  • a photocopy of the employment contract or the employer’s certificate (the date of entry into the company making it possible to specify seniority, a guarantee of stability);

For the unemployed:

  • a photocopy of your compensation agreement notifying the duration and amount of unemployment benefits;

For self-employed workers:

  • a photocopy of the last 3 tax forms (BIC) or declarations n ° 2035 (BNC),
  • a photocopy of the complete balance sheets for the last 3 financial years,
  • a photocopy of the last 3 tax notices;

For retirees or people with disabilities:

  • the last 3 retirement slips,
  • the latest annual summary of all pensions,
  • for early retirees, the last 3 ASSEDIC allocation slips;

For everyone :

  • photocopy of all other sources of income (disability pension, rental investments, alimony, etc.)
  • proof of payment of family allowances and other housing assistance (APL) if applicable.

Evidence of housing and real estate

The lending institution needs to know more about the place of residence, requesting on this subject the sending of the following supporting documents:

  • a proof of address (electricity, gas, fixed telephone bill, etc.) dated less than 3 months and in your name;
  • for persons accommodated free of charge, proof of address, proof of accommodation and a photocopy of the identity card of the person hosting the borrower;
  • a photocopy of the housing tax (when it is not deleted);
  • for property owners: a photocopy of the property tax, the title deed and, ideally, the estimate of the property made by a notary or a real estate agent;

The study of the bank account

The lender also assesses the level of risk by examining the bank accounts and the movements identified therein. The documents to be provided for a credit buy-back therefore include:

  • a bank account statement (RIB);
  • the last 3 monthly personal and / or professional bank statements;
  • statements of all savings books when transfers are recorded from the main account, in particular regular transfers or with a view to justifying the contribution made;
  • if applicable:
    • the loan offer and the mortgage repayment schedule,
    • a document notifying the amount due under all consumer credit outstanding,
    • the latest movements linked to one or more revolving credits (revolving credits);
  • a financial guarantee (credit insurance, mortgage, surety, pledge of life insurance or goodwill, etc.).

Good to know : when the repurchase of credit involves two borrowers, the supporting documents to build the feasibility file are doubled, each one having to inform the lending establishment of its individual situation.

Is it possible to buy back credit without supporting documents?

Is it possible to buy back credit without supporting documents?

There are no companies in France agreeing to finance a loan buyback operation without supporting documents. The borrower cannot ignore his situation and the volume of loans he wishes to redeem. It is also responsible for giving visibility on its solvency, its stability at professional level and on the state of its bank account. All this means that you must provide certain supporting documents.

Our advice for a successful loan buyout

Our advice for a successful loan buyout

To maximize his chances of obtaining a loan buyback proposal that meets his expectations, the borrower can follow a certain number of tips and key points:

  1. Prepare your loan repurchase file carefully, making sure to bring all the elements during the first appointment with your bank advisor or broker. A well prepared request reassures the interlocutor and puts him in good mood;
  2. Be realistic about your request: estimate your income, expenses and future monthly loan payments lets you know if the project is achievable in terms of debt ratio standards and remains to be lived. It is thus possible to use simulators and calculators directly on the internet;
  3. Always approach several financial institutions, directly or indirectly through the intermediary of a broker. This saves time and quickly obtains the best financial proposals;
  4. Take your time : it is essential to study in detail the proposals in terms of interest rate, borrower insurance coverage, APR (annual effective annual rate), etc.

Work loan: how to obtain a bank loan to finance your work?

To help individuals finance the many works likely to improve or renovate their main residence, banks and credit institutions have a wide range of ” work loans “, which can take the form of restricted loans or loans. personal. In all cases, it is recommended to multiply the work loan comparisons and simulations to obtain borrowing conditions as favorable as possible.

How does a work loan work?

How does a work loan work?

Within the framework of a works loan, the bank or the credit organization lends a sum of money of a certain amount to an individual who wishes to carry out, in a property owned by him, essential works ( repair of a roof, anti-fungus disinfection, etc.) or comfort (conversion of the attic, new kitchen, wine cellar, etc.).

This loan can be granted for a primary residence as well as for a secondary residence or rental property.

The works loan is considered as a conventional consumer credit : it is therefore subject to the same rules concerning the withdrawal period of fourteen days or the terms of early repayment of a credit (no penalty below $ 10,000 reimbursed per year).

What are the characteristics of a work loan?

As with any other consumer loan, the main characteristics of a work loan allow quick comparisons between different offers.

There is a very wide variety of work loans, each financial institution having its own promotional offers in this area. Depending on the scale and cost of the site, the amount loaned can start from $ 1,000 and reach fairly high amounts, especially in the case of the complete renovation of a dilapidated housing.

Legally, the works loan can reach a maximum amount of $ 75,000 . If the amount of work is higher, it is advisable to move towards a conventional mortgage. The nominal rate of credit, likewise, is likely to experience very large variations depending on the profile of the borrower and the type of loan requested, and ranges from 4% to more than 10%.

The overall effective rate (TEG) of the credit takes into account all the costs related to the loan, from its subscription to the very latest maturity: this includes of course the interest paid according to the nominal rate, but also any application fees and insurance costs if the latter is offered by the lender himself. To compare the cost of several credits, it is therefore necessary to take into account only this simple and universal criterion.

Credit can be subject to a fixed or variable rate . In the first case, the amount of the monthly payments is known in advance and with certainty, until the last due date. A variable rate, generally indexed on short-term interbank loans (Euribor 3 months), allows you to start borrowing with a lower interest rate, but puts you at risk of paying more later if ever the rates go up. In view of the current economic situation, it is very often recommended to opt for a work loan at a fixed rate.

Borrower insurance is not compulsory for a work loan. However, minimum cover (disability and death) will often be offered by the lending organization itself or may be judiciously taken out with a third-party insurer, all the more if the sums involved are significant.

When should you choose a work loan?

The work loan is suitable for all renovation, improvement or enlargement projects of a house or apartment. It can be work carried out on a main residence, a secondary residence or even on rental property. Thanks to variable terms, the works credit adapts to all projects:

  • enlarge the accommodation by creating an additional room, for example when a new child arrives;
  • renovate part or all of a dwelling : redo paintings, electrical installations, plaster, etc. ;
  • improve living comfort : build a garage, a terrace, dig a swimming pool…

There are an almost infinite number of possibilities for using a work loan. Its flexibility means that it has been chosen by many property owners.

If the work aims, among other things, to improve the diagnosis of the energy performance of the housing or to install more ecological equipment (wood boiler, heat pump, double or triple glazing, etc.), it should be noted, however, that the cost of the loan may be largely offset by various subsidies or tax advantages, such as the energy transition tax credit.

What can be included in a work loan?

Before taking out a works loan, it is important to take an interest in the different types of existing loans, as presented below. In fact, some work loans are said to be “unallocated”.

With these “unrestricted” loans , it is not compulsory to provide supporting documents when requesting release. This type of loan, although generally more expensive, can therefore be highly recommended when the owner is unable to provide invoices (work done himself for example) or if he wishes to finance something other than work at strict sense of the term.

In fact, in an assigned loan, it is essential to provide invoices and, moreover, not all of them are eligible. Thus, the majority of banks refuse to release funds for the acquisition of household appliances (dishwasher, washing machine, oven, etc.) or for the purchase of DIY equipment (drill, jigsaw, circular saw, etc.).

On the other hand, an assigned works credit makes it possible to finance all types of works (swimming pool, extension of the living space, renovation, etc.) at a more advantageous rate.

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A project but already credits? Thanks to the grouping of credits , benefit from a single monthly payment at the best rate for your credits and your project!
Unique Loan, broker in credit consolidation for more than 20 years, renegotiates your loans at the best rate.
Free study without commitment .

Work loan simulation: how to proceed?

Work loan simulation: how to proceed?

Your work project is budgeted and you want to borrow all or part of the amount? Obtaining several simulations makes it possible to compare the conditions and the amount granted by the various financial institutions . To do this, you can go to your usual contact, your bank advisor, or to online simulators, which allow you to quickly and easily access many offers.

To simply compare two work credit proposals, referring to the APR is generally recommended.

For example, if you borrow the sum of $ 10,000 over a period of 3 years, the monthly payment to be reimbursed will be $ 288.88, to which you will have to add the amount of borrower insurance, if applicable.

Depending on the amount you need and your financial capacity, the duration can be adjusted up or down. You also keep the possibility of making a partial or total prepayment at any time, with any type of work loan.

What are the different types of work credits?

What are the different types of work credits?

Depending on the nature of the project and the personal preferences of the borrower, several forms of consumer credit can be used to finance works. Unallocated personal loan, assigned credit or revolving credit: which work loan to choose?

Unallocated personal loan

A personal loan allows the borrower to receive the capital without having to justify its use . It is therefore a much more flexible option than an earmarked loan, which may in particular be suitable for individuals who are a little DIYer and who intend to carry out the work themselves and therefore will not be able to present a professional quote.

Affected credit

A work loan can take the form of an “earmarked loan”. The sum, in this case, must be specifically earmarked for carrying out the planned works . The lender is also entitled to verify this by being presented with quotes drawn up by professional companies . This form of credit comes with a number of advantages, including greater protection in the event of default by the contractor (the possibility of canceling the loan is often provided for in the contract, under certain conditions).

In addition, the loan must be obligatorily allocated if it is envisaged to back it up to a zero-rate eco-loan.

Revolving credit

It is theoretically possible, finally, to charge the amount necessary for the work to a revolving credit, that is to say a reserve of money permanently available and which is replenished over the repayments. This solution is certainly more practical and quick if the borrower already had this reserve of money before, since he then does not need to carry out any other formality or request for a loan.

However, it should be avoided as much as possible, since interest rates are much higher!

Are there state aids in addition to the works loan?

Are there state aids in addition to the works loan?

Depending on the type of work you are considering and your personal situation, different devices can be added to a work loan, particularly when the renovation affects the energy performance of the home. In the table below, simply discover the main aids you can claim for your work project.

The various work assistance systems

What are the work loan organizations?

What are the work loan organizations?

Do you want to take out a work loan? You are spoiled for choice: many lending organizations compete in this market, and this competition is beneficial to you.

Indeed, promotional rate offers appear regularly. It is possible to turn to conventional banking establishments , but also to online credit organizations , which offer their services on personal loans, assigned credits or revolving credits.

How to find the best rate for a work loan?

How to find the best rate for a work loan?

In order to find the best interest rate for a works loan, the APR comparison must be carried out. Also check the other characteristics of the work loan such as the amount of the loan, the duration or the borrower insurance formula is essential.

Loans for carrying out works constitute, together with car loans, one of the most widespread forms of consumer credit. In view of the plethora of offers available on the market, it is recommended to entrust the search for the best conditions to a specialized broker .

The latter will present your file to a large number of banks and credit organizations, and put them in competition to present you the most interesting offer, by taking a low commission in the process.