When you want to buy real estate, most of the time you have recourse to bank credit to finance it. But after having found the ideal accommodation for your real estate project, you still have to respect a certain formality before accessing the loan and signing the deed of sale.
It is indeed several months that elapse between the date on which the compromise is signed and the one when the mortgage is released to pay the seller. We give you all the key dates to know about the validity and acceptance deadlines of your loan offer.
Home loan negotiation time
Once the sales agreement has been signed, you now need to find the bank that offers you the best conditions in terms of credit rates, administrative fees and related services. It will therefore be necessary to build up a solid loan file to canvass banking institutions, or find a mortgage broker to assist you in your efforts and negotiate for you.
Either way, you have 30 days to find the perfect financing. Indeed, this is the time period generally stipulated in the sales agreement. It can however be extended at the request of the parties. This can be useful if you want to take more time to negotiate a loan offer. In practice, it is often 45 days that are left to the purchaser, the procedures can sometimes be longer than expected.
If, on the contrary, you need the property quickly and have already simulated a loan in advance, the 30-day period can be kept. This period is called a “suspensive clause”, it protects the buyer if he does not find a loan offer following the refusal of the banks and prevents him from having to pay compensation to the seller.
In all cases, the time limit set in the compromise must be respected. Knowing that the study of a loan application can be longer or shorter depending on your contacts, the time of year or even your region, it is better to extend the time in case of doubt or difficult file to put the odds in your favor.
Acceptance period for the mortgage offer
After one or more meetings in one or more banking establishments, you are finally notified of the acceptance of your mortgage. The bank informs you of this, generally during a physical meeting or by telephone. Then, she edits the mortgage offer, which can take several days because it is sent to a specific cell.
Your loan offer can therefore take between a few days and 2 to 3 weeks before reaching you. This must be sent to you by post, generally by registered post with acknowledgment of receipt. But the adventure does not end there, since you must respect a deadline imposed by the law to be able to return it …
Period of validity of the loan offer
The loan offer you receive is valid for 30 days from receipt, postmarked. During these 30 days, the bank cannot change its mind or the loan conditions. It is only in the absence of feedback from you that the offer expires.
10-day cooling-off period before acceptance
However, you cannot return the loan offer as soon as it is received. The Scrivener 2 law provides for a reflection period of at least 10 days in favor of the borrower. This period is necessary to allow him to read the clauses provided for in the mortgage and to measure the importance of his commitment, any credit having to be repaid.
This 10-day period runs from the day after receipt of the loan offer. This means that a loan offer received at your home on February 10, you can only return it dated, initialed and signed to the lending institution as of February 22.
Please note, it is not the date mentioned by hand for the acceptance of the offer that is authentic, but that of the postmark. It is therefore necessary to respect this minimum period to avoid any refusal of the mortgage offer.
Deadline for cancellation of the mortgage for non-conclusion of the contract
This specific case only rarely arises when buying real estate that has already been built. However, the seller can retract and compensate for this refusal to sell by an indemnity provided for in the compromise. This is generally 10% of the value of the property.
On the other hand, in the case of a construction or a renovation, it is possible that the real estate transaction does not materialize. In this specific case, the loan offer can be simply canceled if the transfer contract does not come into effect within 4 months of obtaining the mortgage.
The borrower is only linked to the bank for the sums already released and must repay the principal and interest of the loan only up to the amounts actually used. Note that this period of 4 months can be extended at the request of the parties.
Quickly find your mortgage loan financing
Apart from the legal deadlines which must be respected, what generally causes a waste of time materializes in the processing times. In order to get an appointment more quickly and to target the banking establishments ready to grant you their favors, we advise you to be accompanied by a broker.
Failing that, or for the sake of economy, online simulators offer you a powerful tool to compete with the best banks corresponding to your real estate project. In a few clicks, you receive a proposal and just have to make an appointment to follow up in a bank branch near you.