Redemption of credits for real estate purchase


To free up your budget from the burden of repaying multiple loans each month, the redemption of credits can be an interesting solution. It is also very useful when a household wants to make a real estate purchase. Indeed, it is quite possible to include a new mortgage during a consolidation operation. In this case, the amount required for this acquisition is directly integrated into the new credit contracted at the time of signing the contract. Two possibilities are then available according to the profiles but especially the projects of the candidates for this type of assembly: to obtain a complementary free cash or to opt for the release of an affected amount.

The operation of this type of operation

The operation of this type of operation

The repurchase of credits is a financial arrangement which allows to gather several credits, still being refunded by subscribing to a new loan. A solution of great efficiency for homes that are in financial difficulty. By opting for a loan consolidation, it is possible to renegotiate the interest rate but also to change the terms of repayment so that they best fit the budget of the borrower. Monthly payments will be recalculated according to a new schedule in order to give customers more leeway. Once reduced, these monthly payments will be refundable in a longer period. Result? The management of the budget is simplified because there is only one monthly payment to be paid each month. On the other hand, visibility on finances will be clearer and communication much more fluid because the customer will have a single point of contact. In a redemption, it is possible to consolidate consumer loans, real estate loans, but also various debts or overdrafts.

In addition to this great management facilitation, the purchase of loans can also serve as leverage to finance certain projects such as the purchase of real estate, the completion of major projects or the acquisition of a new vehicle. Indeed, when the household budget is stifled by too many credits, it is very difficult to obtain only a new mortgage because often the debt ratio of the borrower will be too large. This is why loan consolidation is the most appropriate alternative to unlock funds while continuing to repay its loans and without increasing its debt ratio. To unlock a sum dedicated to the purchase of a new house, it will be necessary to make the request at the time of the signature of the contract of redemption. The allocated amount may be free of use or affiliated only to the new real estate project. This sum will then be included in the amount of the outstanding capital due to be repaid via the repurchase transaction. Thus the single monthly payment will include not only the old credits still in repayment but also the reimbursement of the new sum allocated. A significant advantage both in terms of management and budget anticipation.

People and eligible real estate

People and eligible real estate

This arrangement is sometimes complex, which is why eligible customers must present not only a solid project but also have a very good record. To be granted a redemption of credits, the client can be both tenant and owner. The conditions restricting the award of such a contract are:

  • Filing at the Francia Bank
  • an excessive debt ratio
  • registration in the national file of check irregularities

The proper management of your personal finances will be a key asset to ensure the agreement of a banking institution. Indeed, it will avoid too frequent overdrafts, misuse of his credit card or late payments of certain deadlines.

Regarding the property to be acquired through the purchase of credits, there are no restrictions. It may be a main residence or a second home. Apartment, house or villa, it is the cost of the property that will be taken into account and not the nature of the property. Indeed, bankers and credit professionals will be especially attentive to the debt ratio of their future customers. It is essential that the rest to live is correct after the signing of the contract. This corresponds to the sum remaining at home after the repayment of his monthly payments.

Find the best offer

Find the best offer

When a borrower plans to buy real estate through a purchase of credits, it will take into account the time of the search for the offer. For this, he has the opportunity to perform a free simulation online. From now on, the number of actors present on this market is very important that is why online platforms all offer a simulation tool. By providing essential information about the borrower’s personal, professional and financial profile, it is possible to receive a quote very quickly. Another possibility is to mention directly in the simulator the amount you want to unlock to buy a new home. It is very important to multiply this approach in order to be able to play the competition and negotiate the terms of his contract as best as possible.

Another option: get the advice of a broker. This professional is the ideal intermediary to find the best offer because he has all the comparative tools and he will guide you through the process. The hired broker will negotiate for his client the best possible conditions to allow the borrower to achieve maximum savings.

Whatever the chosen option, some essential criteria must be taken into account when analyzing an offer such as:

  • the proposed interest rate
  • the amount of future monthly payments
  • the proposed repayment term
  • the amount allocated for the real estate purchase
  • the remaining capital

Once the offer has been selected, you have to submit a concrete file and wait for a positive response from the establishment concerned.

The mounting of the file: a step not to neglect

The mounting of the file: a step not to neglect

Unlocking additional cash to realize a real estate purchase project is a complex and cumbersome operation. Therefore, candidates for this type of contract will have to build a very solid file to be granted a positive response to their request. For this, it will be necessary to present certain obligatory documents which will justify a good financial management and the good health of the budget of the borrower.

Thus, the file should include:

  • bank statements for the last three months
  • a copy of the identity document
  • proof of residence of less than three months for both tenants and owners
  • rent receipt or property tax
  • the last pay slips to justify the borrower’s solvency and stability
  • the copy of the tax notice
  • the copy of the maturity and amortization records of credits in progress
  • the statements of the different booklets and savings products
  • electricity and telephone bills

The more solid and complete the case, the more likely the borrower will receive a positive response. The institution will carefully consider the current situation of the borrower to ensure that he / she will be financially able to support a buy-back of credit without putting it in a precarious position. As each file is different, the amount of the allocated amount may vary depending on the profile of the borrower.

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