Comment monter un dossier bancaire pour un investissement locatif ?

Finding credit financing is an important step in a rental property project. In addition, financing your investment with a mortgage can allow you to take advantage of the leverage effect of credit. Generally speaking, the bank loan is the most interesting both in terms of the contract and the amount. However, a loan requires a bank document to apply for it. So how do you put together a loan application for a rental investment? The answers in this article.

Meeting key conditions required by banks

The banker needs insurance to give you the loan. They will look at your bank account history to get a clear picture of your standard of living and habits.

The debt ratio

The first element that the banker looks at is the debt ratio. This notion is important for taking out a bank loan as it corresponds to the borrower's capacity to get into debt. This rate is currently set at 35%.

Income

Before granting a bank loan for a property investment, the banker also checks your income. In doing so, they want to be sure of your ability to repay. This includes regular salaries and bonuses as well as 70% of the property income from your future property purchase.

The charges

Charges include your current credit and all your monthly expenses. In France, loan insurance premiums have been included in the charges since 2021.

The contribution

The deposit is the minimum amount that a borrower must have in order to obtain a property loan. However, it is possible for the bank to lend you money without a deposit in the case of an investment in rental property. However, having this minimum amount is an additional insurance for your mortgage application.

Take care of your accounts in advance

Before putting together your application for the loan, you must take care of your bank account in order to pass the inspection phase by the banker. The acceptance of the loan for the financing of your project depends on the risk you give the bank.

Have a constant balance for the last three months

During the analysis of your banking data, the bank will take into account your expenses over the last three months to assess the risk. The aim is to give the bank confidence that you are not in the red in order to improve your image. It is also important to check your accounts before launching the project. It is better to postpone the application for a few months than to receive a rejection for the loan file.

Have savings

Making savings will allow you to build up a personal contribution. Moreover, it is one of the decisive factors in the acceptance of your mortgage application by the bank. Also, if you have not yet started saving, it would be wise to set up an automatic transfer. This will give you a better reputation with the banks.

Provide professional and personal details

The method of analysing your file varies from one bank to another. In order to facilitate the task of the borrowing organisation, it is advisable to highlight your strengths and weaknesses. This may help to validate your application.

The work situation

Being on a permanent contract (CDI) in a company or a civil servant gives you more credibility with the bank. You will also have a better chance of obtaining your financing. You can mention your seniority and your prospects for development to reassure the bank. In the case of a fixed-term contract in a company, it is important to provide proof of regular income for at least 6 months to facilitate the constitution of the file.

The personal situation

It is also important to mention the personal situation. The presence of a co-borrower generally reassures the banks if you are planning to invest in property together. In addition, if you have children, the taxation of rental income will be weighted, which will reduce your debt ratio.

Provide the minimum documents required to apply for a rental investment loan

In order to get a loan for a rental property investment from the banks, you must provide the necessary documents. If the file is incomplete, the banks will systematically refuse to examine your application.

Documents proving your identity

A bank file for a rental investment includes many supporting documents. The documents relating to your personal situation required are as follows:

• Identity card, passport or residence permit in France;
• Proof of address;
• Proof of your current family situation (marriage contract or other).

Please note that you must bring the originals with the copies. The originals will be returned to you after verification.

Documents relating to your professional activity

In addition to the documents specifying your identity, the necessary documents related to your professional activity are also required, namely

• Proof of income (pay slip and employment contract);
• The last two tax notices ;

These documents will allow the bank to estimate your cash inflow.

Documents relating to the property project

It is also necessary to provide documents justifying the use of the loan. In particular, you must provide :

• A compromise sale for the purchase of an old property;
• The cost of various works ;
• Le contrat VEFA(Vente en état futur d'achèvement);
• The completion guarantee and the repayment guarantee for a property under construction.

For a loan, each of the two borrowers must bring their respective documents.

Proof of income from assets

If your contribution comes from the sale of another property, you must bring the sales agreement as proof. The same applies to your savings and any other amounts at your disposal. Transparency will be more than favourable for the constitution and validation of your file. Furthermore, investing on credit is a mutual effort between you and the bank, as the contract can last up to 20 years. Also, having a contribution will allow you to negotiate the conditions of the loan to reduce the amount to be repaid.

In order for the bank to borrow the amount needed to complete your investment project, you must prove your future rental income. This can be done by bringing the existing rental contract or two income statements from different estate agents.

Select the best bank

In general, the criteria for accepting a loan application are the same for all bank customers. However, some financing institutions keep a margin in the apprehension of the percentage of rental income. In particular, they take into account the tax reduction, the tax exemption and the exceeding of the debt ratio.

Therefore, in order to have your investment application accepted, you need to present your project to several banks. Only the borrowing conditions of the lending institutions vary. The advantages often remain the same.

Get assistance from a professional broker

If you have any doubts about your file, you can call on a broker. He or she will give you the advice you need to take out a mortgage in France. He or she will help you to obtain financing for the purchase of your rental property. In addition, a broker's opinion on each bank will enable you to choose the best lender. The clients of a loan broker generally obtain their financing, although they have to pay the cost of the services offered.

The broker has the maximum amount of information on the banking market and will defend your loan file to obtain the best rate. In particular, he or she can negotiate the penalties for early repayment. The broker offers you the opportunity to proceed with the purchase of your rental property more quickly. In this sense, it will allow you to save time and money for a serene rental investment.