If you are a non-resident looking to invest in French real estate, you have two choices when it comes to financing. You can find a local lender who specializes in international lending, or you can obtain financing from a French bank for your French property. If you decide to obtain your loan from a French lender, there are a few things you should know.
1. Most Large French Banks will lend to resident and non-resident purchasers.
2. If obtaining a mortgage is essential to purchasing your French real estate, insist on having a clause to that effect inserted into your Preliminary Sales Agreement, often called the Compromis de Vente or Promesse de Vente.
3. The Notaire preparing the Preliminary Sales Agreement will ask for the name of the lender and amount you need to borrow. If you are refused a loan by that bank, it is acceptable to approach other lenders, but you will need to provide the Notaire with written proof of the denial from the named lender.
4. Life Insurance is a mandatory loan requirement.
5. Some lenders offer bi-lingual services. If you are not fluent in French, this service could prove invaluable.
6. If your income comes from outside of the Eurozone, you will need to consider the currency exchange rates, tax liabilities and tax benefits when determining the best source of funding.
7. You can approach banks directly or use a broker to help compare loan offerings from various sources.
8. Obtaining a pre-approval mortgage certificate can be helpful during preliminary purchase negotiations.
9. Formal mortgage commitments are only given after a Compromis de Vente is signed.
10. Opening a French bank account and making regular deposits months prior to your real estate purchase can make it faster and easier to obtain a French mortgage, which may otherwise take a couple of months.
by Cheryl Hartzman, AboutFrenchProperty.com - Copyright © About French Property
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