1. |
Consult France Home Finance to choose the best French mortgage for you.
Based on the home you have chosen and
your personal financial situation, our
experts will help you choose among all
the options to find the most advantageous
product for you. See “Which
French mortgage is right for me?” for more
information.
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2. |
Complete the mortgage and life insurance application.
You complete a declaration of your financial history and fax or send
us supporting documentation (income tax filings, pay slips, bank
statements and outstanding mortgage statements). Be sure to only
send copies, original documents are not required. You will also
need to complete a medical questionnaire to apply for life insurance
for the mortgage. For mortgages over 190,000 €, you may be required
to complete a medical interview with a doctor, blood test and in
some cases an electro-cardiogram to get life insurance. This is
standard process and most easily accomplished in France as there
are special medical centres that offer one stop shop appointments
especially for this purpose at no charge to you. It is also possible
to complete the tests in your home country. Signed original copies
of both of these documents must be returned to France Home Finance. NOTE: it
is critical to complete this step as quickly as possible. Your
contract to buy normally gives you a tight deadline to arrange
your financing before you can pull out and recoup your deposit.
As French banks and insurance companies frequently have backlogs,
there is no time to lose in getting your application in.
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3. |
Open a French bank account and purchase homeowner’s insurance for your home.
You are required to have a French bank account from which the lender
can automatically debit your mortgage payments. If you do not already
have one, we will help you set one up. You are also required to
insure your home against damage and loss. We can help you with this
as well. When you have your new bank account, be sure to ask your
banker for 10 copies of your RIB (relevé d’identité bancaire.)
This is an official piece of paper with your bank account information.
You will need to give a copy to your mortgage bank and insurance company
immediately and later the phone company, etc. Most banks allow internet
access to your account where you can download and print extra copies
of your RIB.
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4. |
Accept your mortgage and life insurance offer.
France Home Finance will be in close contact with the bank(s)
reviewing your application to make sure you receive the best possible
terms and conditions. Once the bank has studied your file and is
ready to tender your offer, the mortgage offer is sent to you and
to your notaire. Consumer protection law states that you must wait
a minimum of 11 days before accepting the proposed mortgage. The
banks typically require that you sign no later than 30 days after
reception of the documents. You will need to sign and return the
mortgage offer by registered mail. Once you have accepted the mortgage,
you have typically 4 months to complete the sale. You will have received
your life insurance offer by now. Make sure to sign and return the
original offer as quickly as possible.
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5. |
Arrange to pay the down payment and closing costs to finalize the purchase.
At the final signing, you will be required
to pay the remainder of your down payment
(over and above your initial deposit),
the notaire fees, and any other closing
costs associated with your purchase. Your
notaire will let you know this amount
about two weeks before the final signing
date. You can either arrange to have that
money wired into the bank account of the
notaire, or into your own French bank
account. If the money is wired into your
own account, be sure to bring a “cheque
de banque” (certified bank check) to the
closing with you which can take a few
days to arrange. It is also possible to complete the act of sale without actually coming to France. You simply need to sign a power of attorney to allow the notaire to sign in your place. Make sure to leave yourself
enough time to pursue the option you choose.
See “Which
French mortgage is right for me?” for more
information on closing costs. You are
now ready to finalise the purchase of
your new home.
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