Real estate loan: what is a bond company for?
To benefit from a bank loan, it is essential to be able to justify its solvency. Even before validating your loan application, the bank will ask several questions: that of your contribution, your level of resources, but also that of your available income each month. And to ensure that you can repay your monthly payments, the bank will require a guarantee, namely a mortgage or a deposit. For this last case, beyond the close entourage, it is possible to appeal to a specialized company.
What is the role of the surety company?
A surety company undertakes, when an acquirer makes a credit, to repay the monthly payments if the borrower is no longer able to pay . Subsequently, to recover the sums paid to the lending institution, the surety company returns to its debtor.
Depending on the circumstances, in such a situation, several issues are possible: the surety company can set up an amicable solution, in order to grant additional payment delays to the defaulting borrower. In more complex cases, a seizure of the property may be considered.
What are the advantages of a deposit?
The deposit involves an additional cost for the buyer . In order to benefit from it, the latter must pay a guarantee fee – representing a percentage of the sum borrowed or a lump sum, as the case may be. Moreover, it pays a contribution to the mutual fund, solicited in the recovery process.
If the surety increases the real estate investment envelope, it also includes some benefits. For example, at the end of the loan, part of the payment made to the mutual fund is paid to the borrower . On average, for a deposit subscribed with Crédit Logement, 70 to 75% of the sum spent is refunded to the buyer.
Then, we note that the deposit is not a notarial act , which implies a total transparency of the fees , based only on the commission and the contribution to the mutual fund. Conversely, the purchaser having privileged the mortgage as a guarantee, will have to pay expenses not defined in advance …
Finally, the bond is not related to the property for which a loan application has been granted.
Can we reduce the cost of the deposit?
People working in the field of Education, Research and Culture can benefit from the deposit , particularly advantageous: it has a very low cost (or nonexistent), while being simple to implement. It can be solicited for projects of all kinds: purchase in the old or new, for a principal residence, secondary or a rental investment and even for the realization of work.
For buyers wishing to embark on a secure project, it is also possible to get closer to Credit Housing : all partner banks can offer this deposit to borrowers. For each client, mobilizes a team of experts gathered around the study of the file . In the event of difficulties in repaying the monthly payments, the organization takes over from the borrower and takes the necessary steps to resolve the situation: 1 out of 2 defaults resumes a normal cycle after the intervention.
More and more solicited, the deposit appears as a guarantee gradually replacing the mortgage . In the event of resale, this solution makes it possible to avoid paying the costs of mortgage release and, moreover, this initiative makes it possible to protect itself from a possible seizure, since the agencies of guarantee privilege the search for other solutions before dispossessing the buyer of his property.