Are you pre-approved?

The purchasing and mortgage processes are different in France than in many other countries. As a buyer in France you will first sign the purchasing contract before you apply for a mortgage, of course you will be asked by your Notary to include a “subject to clause” saying that you are buying the property with a mortgage. If you for some reason should not be able to obtain the necessary mortgage you can withdraw from the purchase and you will get reimbursed your deposit money.

Because of the way property transactions are done in France, a lot of sellers are inclined to accept a lower offer or let your offer go before someone else if you have your financing sorted before making the offer and signing the contract. Quite a few transactions will be cancelled due to the buyer failing in obtaining a mortgage.

If you want to appear a more serious buyer and also achieve a better price on the property you are buying then you should consider getting a pre-approved status from one of our banks. A pre-approved status in France does not mean you will get access to the money, as the money will always o directly from the bank to your Notary who will distribute the funds and conduct the final deed, but you will hold a stronger positions compared with other buyers for the same property.

How can you achieve pre-approved status?

By contacting us here at Finance in France SARL and providing us with the necessary information, you should receive an answer from one of our banks with 1 week (depending on your work and tax situation). You will be asked to fill out a Mortgage Application Form and a Medical Questionnaire, as well as supplying the bank with the following personal information:

• Passport copy of everyone involved in the purchasing process
• Copy of your wedding certificate
• The 3 last months current bank account statements
• The 3 last months pay slips
• The 3 last years tax returns
• Any documentation showing your pension, savings, share holdings etc

It sounds like a lot, but you will need to find these documents in the end anyways if you are planning to buy with a mortgage in France.

Not only will this give you the knowledge of the mortgage system, costs and taxes, but it will also determine what amount you can mortgage in total (may it be more or less than you initially thought). It will help you to be more focused on the type and price of property you can buy and save yourself time and money.