June 17, 2024
Home loan

You have just received a home loan offer and you want to know from when you can accept it, give it up by asserting your withdrawal period, for how long it is valid and under what conditions? In this guide, we answer all your questions about the deadlines for editing a loan offer.

Home loan offer: how soon to sign the bank’s proposal?

As its name suggests, a home loan offer is a document that allows you to accept credit. This registered letter with acknowledgment of receipt is sent by the bank that accepted your request and your loan application file. It summarizes all the loan terms in great detail, as well as the obligations of both the lender and the borrower.

Signing this home loan offer corresponds to accepting the credit. If this step therefore marks the end of your search for financing with a view to buying the property of your dreams, it is however subject to certain rules. When can I sign my loan offer? Do I have a withdrawal period for my credit offer? For how long is this mortgage offer valid? In this guide, we suggest you answer all these questions so that you can sign your loan offer with complete peace of mind!

What is a home loan offer?

As we have seen, a loan offer – real estate or consumption – is a document sent by registered letter from the bank to the borrower. By receiving this letter, the latter can therefore consider that his credit application has been accepted, thus ending his period of seeking financing for the project he has in progress.

In this loan offer, he will be able to find all the information concerning the loan he needed, as well as the conditions previously negotiated with the bank, which the two parties must respect each on their side to validate this loan offer.

The loan offer is not to be confused with the home loan agreement. Also called an agreement in principle, this is obtained during an initial study of your file by the bank and does not guarantee you will obtain a loan. In particular, you can obtain it quickly by carrying out an online mortgage simulation .

An agreement in principle will briefly summarize the different borrowing conditions for your project, without going into detail. On this subject and without further ado, let’s see on the contrary what a mortgage offer contains.

The elements included in the loan offer:

To be valid from a legal point of view, the mortgage offer you receive at home must at least contain:

The identity of the borrower (that of a co-borrower or a person who stands surety must also be specified if this is the case).

Reason for the project and nature of the loan contracted: zero-rate loan for the purchase of real estate, for example.

The total amount of principal you have borrowed.

The term of the loan (in months and years).

The fixed or variable borrowing rate you obtained. In the context of a variable loan, the variations must be specified.

The annual percentage rate (APR): including all ancillary costs (guarantees, insurance, administration fees, etc.)

The borrower insurance contract, specifying the effective annual rate of insurance (TAEA) which will determine the cost of your credit insurance.

An amortization table , which will summarize the amount of all your monthly payments with interest and cost of insurance.

The date the funds were released.

All the elements that we have just mentioned are generally known to the borrower who has chosen to compare different mortgage offers upstream to choose the one that will best suit his budget . On several credit offers, you can always continue to compare them to sign the most likely to match your profile.

Duration of loan, amount of monthly payments, fixed rate obtained, rate of group or individual borrower insurance  : many elements can tip the balance towards this or that offer on the side of the borrower. Take the time to compare all these elements to avoid any disappointment once the funds have been released and your first monthly payment has been made.

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