Application process France

Application process France

There is only one chance to make a first impression at a bank: as far as we are concerned, it should be overwhelmingly good. After choosing a particular route toward realizing the desired mortgage loan (see also “preparation”), the application process begins. Five stages can be distinguished in the application process: 1. preliminary application 2. file, 3. submit, 4. monitoring and adjusting, 5. conclusion.

To verify that an application is indeed feasible – in principle – a preliminary application is often first submitted to the intended French bank.

A well-documented application is essential for a successful application. Unclear or gaps in documentation create the perception of additional risk on the part of the bank. Together, the documentation is completed to the point where all essential elements are substantiated.

Hypotheek & Buitenland creates a comprehensive cover letter explaining all the elements and translating them so that everything is 100% clear to the French bank. The application is completed with the bank’s application form after which it is submitted.

Once submitted, additional questions or requests for additional documents sometimes follow. Ambiguities are clarified and additional substantiation in the form of documents is provided. Where necessary, if the situation calls for it, the application will be adjusted. If an application is unexpectedly rejected, an attempt will be made to change the bank’s mind by means of an appel sur refus. Should that fail, discussions will follow to see if applying for a mortgage with another French bank is possible.

Please allow 6-8 weeks processing time after the fully documented mortgage application is submitted. However, this is an average; some banks are smooth, some slow. Longer are the processing times for more complex mortgage applications such as when buying out a (former) partner(rachat de soulte), refinancing and financing new construction.

When the risk committee of the respective bank has given its approval and the appraisal also shows a sufficient value, the bank will make its credit offer. After observing the legally required reflection period(loi Scrivener), and verifying the mortgage terms, the offer can be accepted. If desired, a bank account in France will be opened and insurance arranged with the help of Mortgage & Abroad. Completion follows after the notary receives the draft mortgage deed from the bank and releases the mortgage funds into the French notary’s trust account.

Usually an appraisal is required after the initial assessment has taken place. It varies from bank to bank who should organize this. Sometimes the bank does it at its expense, sometimes the bank asks the customer to provide an appraisal report.

Banks that do not often deal with non-resident clients (often regional banks), quite often request (sworn) translations of a number of documents, such as pay slips, tax assessments or other documents. The goal is to keep translations to a minimum.