Buying Real Estate: Key Steps
Buying real estate is often a significant step, especially for first-time buyers.
This process can be stressful, particularly due to the considerable financial amounts involved.
In this article, we guide you through the different steps to follow to confidently acquire your property.
Finding and Making an Offer on a Property
Make initial contact with a bank or broker to evaluate your borrowing capacity.
Once the budget is clear, you need to find the property you wish to acquire and make an offer to the seller.
If your offer is accepted, you can move on to the next step.
Financing and Agreement in Principle
It is essential to contact banks or a broker to determine your borrowing capacity.
The goal is to obtain an agreement in principle from the bank on the terms of the loan contract.
Signing the Purchase Agreement
The purchase agreement is signed in the presence of a notary. At this stage, you must pay:
- A security deposit, often 5% of the property price, showing your firm commitment. If you withdraw without justification, you will lose this amount.
- A provision for notary fees, calculated with a margin of error, to cover transaction-related costs.
The purchase agreement allows you to commit further; also verify that the loan approval clause is included, as this protects you in case you don’t obtain your loan.
Finalizing the Loan Offer
After signing the purchase agreement, you will need to send the official agreement document to the bank, which will either approve or deny your loan.
If the bank accepts, you will receive an official loan offer to sign.
Signing the Final Deed of Sale
The final signing at the notary’s office is similar to the purchase agreement signing; you will need to send the notary the official loan offer signed by you.
Before this signing, the funds must be transferred to the notary’s account.
Generally, the bank makes the transfer, deducting any personal contribution you need to add.
Managing Works and Funds
If renovations are planned and financed by the loan, you will need to request the release of funds in several stages, providing contractors’ invoices.
Banks generally offer a payment deferral, allowing you to first pay the interest, then gradually the complete monthly payments as funds are released.
Of course, most of these steps will be eliminated if you don’t need a loan to buy the property.