If the subscription of a home loan commits the borrower, he also hires the lending institution. Reason enough to require a minimum of guarantees before submitting to validation a loan offer. Among these guarantees, the professional status and the type of employment contract of the applicant are the subject of the greatest attention on the part of the banks.
When granting a mortgage to a client, a banking institution ensures that the risk of non-repayment of borrowed capital is kept to a minimum . For this, the profile of the borrower is scrupulously analyzed, especially his income, which must be regular and sustainable.
In this respect, the applicant’s professional status and employment contract are closely studied by the banks, which show a certain preference for open-ended contracts.
Fixed-term contracts, temporary contracts and the self-employed can nevertheless be granted a mortgage under certain conditions.
The winning profiles for a mortgage
When applying for a home loan, the banks will grant a maximum index of confidence to employees of the civil service titularized, followed by employees of the private sector on a permanent contract with probation period completed, and private sector employees on fixed-term contracts since at at least two years and continuously in the same sector of activity, and finally to temporary employees, under the same conditions, namely for contracts renewed for at least two years in the same sector of activity.
In all cases, the rule is durability and regularity. Note, however, that a bank will be much more reluctant to grant a loan to a couple on fixed term than to a couple on a permanent contract, or a couple of which at least one of them is on a permanent contract.
Similarly, non-salaried workers, whether they are business managers, entrepreneurs, self-employed entrepreneurs or freelance professionals, can perfectly envisage a real estate project. The banks will ask them in this case a number of documents, among which the last two balance sheets of the company or an accounting order.
Experience is a major guarantee for the bank or lender.
Except for some professionals, especially the liberal professions, who generally have a good chance of obtaining a mortgage even without having a long experience in their field of activity.
In any case, and regardless of his professional status, he should solicit several offers of mortgage loans from different banks.
Some lending institutions may be required to accept a mortgage credit file deemed satisfactory, while others will refuse to grant a loan.