For employees in the public service, the criteria for accepting a mortgage are identical to those of a private sector employee. However, government profiles can claim more attractive terms.
Civil servant: the options to become owner
Public servants who want to buy a home have two options. The first is to deploy one’s own financial resources using self-financing. Given that the cost of credit is currently affordable, thanks to still very low interest rates, this remains an alternative that is not suited to the current situation. The second solution is to apply for credit by contracting a real estate loan official. The acquisition of a home requires an investment of the order of several tens to hundreds of thousands of euros in general. A substantial amount that often requires the use of a financial institution to help a household to carry out its real estate purchase project.
Make a simulation online mortgage real estate official
Before embarking on a financing phase, the home must carry out a preparatory phase by gathering as much information as possible about its needs. This loan has the particularity of being depreciable over the long term since the repayment period of the monthly payments lasts between 10 to 30 years in general.
It is therefore a long-term and highly responsible commitment. A feasibility study is feasible by carrying out a free and non-binding civil servant mortgage simulation using the online form. This phase provides an initial insight into the feasibility of the project. Subsequently, an expert advisor makes contact to study more deeply the demand for mortgage credit.
Get the best mortgage rate when evaluating the borrower profile
In the analysis, the financial institution takes into account a multitude of characteristics related to the property to be purchased. But criteria relating to the personal situation of the borrower are also evaluated as his income, his wealth, his age and his state of health. As a result, a borrower must have a good profile to obtain attractive financing conditions. For this, the correct income as well as the proof of a good management of the budget are arguments to negotiate to valorize with the credit organization. Based on these two groups of information, an offer is formulated with an interest rate that takes into account the rate of wear practiced in the last quarter. Indeed, this indicator, provided by the Banque de France, caps the maximum interest rate that a finance professional can offer to his client. In addition, mortgage loans can incorporate a fixed interest rate or a floating rate.
The borrower insurance to ensure the mortgage
In the vast majority of cases, the lender asks that the future owner subscribe to a borrower insurance. Although this is not a legal requirement, this product remains essential to ensure repayment of credit in the event of default. The conditions of coverage are determined by the guarantees and the share subscribed by the household during the formation of the contract. They will then determine the insurance premium that the borrower will have to pay monthly in addition to his monthly loan payment. This cost includes the APR which also includes the nominal interest rate and the various application fees.