What you should know about financing your real estate projects

What you should know about financing your real estate projects

That's it — you're taking the plunge, and growing your wealth is now your priority. But to make the purchase of a property a reality, you naturally have to go through the financing stage. This means weighing all the expenses related to your project against all the resources you can count on to fund them. The goal is to determine the amount you need to borrow to carry out your project.

To get straight to the point, we have answered a series of questions you often ask us. With these answers, financing your property will feel like child's play.

What does the bank check before granting my mortgage?

Borrowers should be aware that they must provide accurate and complete information; otherwise, the loan cannot be granted if the bank is unable to carry out the appropriate assessment. Income, savings and bank account activity over the last three months are examined particularly closely.

How can I make sure I get my mortgage?

In general, it is recommended to have a personal contribution covering at least the notary fees (2% for new builds vs. 8% for existing properties). It usually amounts to 10% of the total sum borrowed, i.e. €20,000 for a €200,000 loan. The higher your contribution, the better positioned you will be to negotiate a lower interest rate and secure a mortgage on the best terms.

Who approves my mortgage?

The bank (if it is a cooperative) or the housing-guarantee body grants the mortgage to the future buyer of the property.

Who validates my mortgage application?

An agreement in principle guarantees that the bank will assess your loan application. Issuing an agreement in principle is at the bank’s initiative, but it must take into account the opinions of the guarantor and the insurer.

Cooling-off period

To be valid, the offer must be accepted after a mandatory minimum cooling-off period. This period is 10 calendar days. It starts the day after the offer is received.

Does all this still sound a little theoretical? Handee experts are here to support you with your project.