[vc_row][vc_column][vc_column_text]Step 1
You find a property in France and intend to finance the purchase with a French Mortgage using no less than a 20% down-payment from your own funds. The whole process of completing on a French property from the moment you sign the compromis de vente takes around 60 days. Under normal circumstances the formalities for a French Mortgage can be in place with a 40 day period.
Consider appointing your own English-speaking notary to coordinate the transaction. The process of owning a house in France will start much easier
Step 2
You will sign the Compromis de Vente (sales agreement), ensuring that it contains the ‘Clause Suspensive’ stating that the purchase is dependant on the obtaining of a French Mortgage. If the bank declines the loan then all monies including the deposit will be returned to the buyer in full. There will be a time limit for applying for the French Mortgage stipulated in the ‘compromis de vente’. Normally this is around 30-45 days.
Normally the date set for signing of the title deeds of the property are set around two months after signing the compromis de vente. This is the time it takes for the notaries and the authorities to take care of all the due diligence procedures associated with transferring the title deeds of a property.
It is important that the financial details of the operation: the loan amount, the name of the lending bank, the French interest rate and the length of the French Mortgage are defined in the compromis de vente to avoid problems later. In many cases we suggest you fax a copy of the compromis de vente to French Mortgage Xpress so that we can ensure that the financial details of the purchase are correctly defined to protect your interests.
If you do not intend to obtain a French Mortgage, you are expected to write in your own handwriting that you intend to give up your rights under the law. This is not always wise, since should you subsequently decide to obtain a French Mortgage, and fail, then you will lose your deposit.
French Mortgage Xpress will describe the different types of French Mortgages available to you and will help you to select the best type of mortgage based on your circumstances and the banks’ lending criteria. French Mortgage Xpress will send you a quotation to give you an indication of your monthly payments on the French Mortgage and will ask you to provide some basic financial details.
At this point you may wish to appoint your own notary to oversee all aspects of the transaction. Contrary to many reports, the appointment of your own notary does not incur any extra costs. French Mortgage Xpress can recommend English-speaking notary services at no extra cost to the purchaser.
Be wary of signing a compromis de vente without the escape clause in the event of your mortgage not being approved.
Step 3
You complete the lenders application form provided by French Mortgage Xpress for your French Mortgage along with a medical questionnaire and send it to French Mortgage Xpress together with photocopies of the supporting documentation required.
The application form and medical questionnaire will need to be returned in original form along with photocopies of all of the other documentation required.
Use the French Mortgage Xpress checklist of documents to be provided. The more complete the documentation, the faster your French Mortgage can be processed.
Step 4
French Mortgage Xpress staff check all documents and will confirm receipt by e-mail/fax and advise you of any documents still to be provided. French Mortgage Xpress then passes the documents on to the lending bank for a “first reaction.”
French Mortgage Xpress at this point can arrange the opening of a French bank account.
Step 5
The lending bank will provide French Mortgage Xpress with the first reaction. This usually consists of a conditional approval subject to the obtaining of any missing documents from the original list. French Mortgage Xpress conveys this report from the bank to you.
Step 6
You supply missing documentation (if any) to French Mortgage Xpress, which is passed on to French bank. The dossier, once complete, then proceeds to the French bank’s lending committee for final approval.
Step 7
At the same time the bank will authorise an independent evaluation of the property to be purchased. It will be necessary to coordinate with the owner/real estate agent for the independent evaluator to access the property.
Make sure French Mortgage Xpress has the contact details of all the relevant parties in the transaction in order that we can short-cut any potential problems.
Step 8
Within 10 days of receiving all the required financial information, the lending bank will be able to give a decision on your French Mortgage application. Often the response is “Yes” – subject to medical insurance.
Step 9
Once all the medical formalities have been taken care of, the French Mortgage offer will be issued and sent by post usually to your normal address. A duplicate will be sent to your notary so that they can start drawing up the final documents for the title deeds. The notary needs a copy of the French Mortgage agreement before he/she can draw up the final documents and will at the same time be able to calculate all the notary fees including the land registry fee which is a percentage of the French Mortgage loan amount. The notary will be able to tell you the exact amount of these fees at this stage you should be ready to pay them by a French bank cheque on the day of signing.
Make you’re your local GP completes the medical forms provided by the bank. Most medical officers representing the banks will not accept medical information more than three months old.
Step 10
Once you receive the loan offer, contact French Mortgage Xpress who will give you precise instructions on how to complete the acceptation letter and answer any questions you may have about your new French Mortgage. Remember, under French law, there is an 11 day cooling off period before you can legally accept the bank’s loan offer for your French Mortgage.
Step 11
The loan acceptance offer has been returned to the French bank. The bank will transfer the funds you have borrowed to the notary usually in the 48 hours preceding the date set by your notary for signing the final act. You will arrange for the transfer of the down payment plus notary fees to the notary’s account. The notary is responsible for informing you of the precise sums. Make sure you leave sufficient time for the funds to arrive in the notary’s account; especially if the funds are being sent from abroad. You may wish to use the services of a specialist foreign currency provider to obtain the best exchange rate. French Mortgage Xpress can advise you on this issue.
Ask French Mortgage Xpress for advice on currency exchange and transfer procedures.
Step 12
Congratulations! Finally you sign at the notary’s office. Be prepared for a minimum of two hours at the office. Usually a translator is provided for a small fee, payable to the notary by French bank cheque on the day. It may also possible to sign by proxy; you should set up this arrangement well in advance with your notary.
Note:
Your first French Mortgage repayment will come from a direct debit you have set up with a French bank. Within six weeks the bank will also draw down any bank arrangement fee as stated in the loan offer (usually between 700 and 1200 Euro). You should make sure there are sufficient funds in the French bank account to cover both the first monthly payment and the bank’s arrangement fee.
Remember your property is at risk if you do not keep up your French Mortgage payments!
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