Exciting news – you're diving into the French property market! Buying a house in France is an exciting venture. As you embark on this thrilling journey, it's essential to equip yourself with the knowledge to navigate it smoothly. Don't worry! We've put together an 8-step guide to help turn your dream into reality.
Step 1: Preparing your project
Deciding to buy a house in France is just the beginning; now, it's about figuring out exactly what you want. Before you start looking, take a moment to envision your project. Are you planning to make France your permanent home? Looking for a vacation retreat? Or are you aiming for a smart investment?
Here's a checklist to kickstart your thoughts:
- Project type: Is it a primary residence, a holiday escape, an investment for rental returns, or a combination?
- Location preference: Pin down your ideal spot in France and set your search parameters.
- Property condition: Decide if you're ready to move right in or eager for a renovation project.
Buying a house in France involves careful financial planning and understanding your budget constraints.
Step 2: Unravel your finances
With your aspirations taking shape, it's time to tackle the all-important second step: setting your budget. It’s based on two important things:
- 100% English mortgage calculator: our calculator specifically designed for non-residents, unlike generic calculators that leave you in the dark.
- Get results tailored to YOUR situation. No more one-size-fits-all guesswork. This tool factors in the unique circumstances of buying in France as a non-resident, giving you a realistic picture of what you can afford.
- Expert guidance is just a click away! Connect with our English-speaking brokers who specialize in helping non-residents navigate the French mortgage process. They'll answer your questions and ensure a smooth journey to your French home.
Even if you have a rough idea of your down payment, figuring out your borrowing capacity can be a headache. But don't worry! At Pretto, we've made it easy with our user-friendly English simulator, specially designed for international buyers. With just a few clicks, you'll get a clear picture of your financial situation!
If you want to explore the simulation process further, reach out to a Pretto broker. With just a few documents, we'll review your situation and provide you with a precise, detailed simulation, giving you a better idea of your borrowing potential as a non-resident.
Step 3: Embark on your property quest
This phase is where the real magic happens – discovering the place that whispers "home" to your heart. The options are endless. You can dive into online listings in search of that one special gem, or enlist the expertise of an estate agent or property hunter.
Opting for a property hunter does come with a price tag. Yet, the 2-5% fee (based on the property price) is a small investment for the priceless peace of mind it brings. Your hunter will track down homes that perfectly align with your criteria, sparing you from wasting precious time. With them by your side, you'll only lay eyes on properties that have the potential to sweep you off your feet instantly.
Considering a purchase from a private individual?
Buying directly from a private seller can save you from expensive agency fees (usually around 4.8% of the property price). Websites like Leboncoin and PAP list properties that are not sold by real estate professionals. But beware – private sellers may inflate prices, often matching the agency fees you aimed to bypass!
To make finding your perfect property easier, we've launched Pretto Search – an app that puts your dream property on the fast track! Say goodbye to endless hours of scrolling and unpleasant surprises. Our app scours the top 10 French websites, delivering alerts on potential properties tailored to your budget. Input your down payment and desired loan term, and voilà! We'll do the math, figuring out your monthly payments directly on the listings you're interested in.
Step 4: Elevate your offer strategy
You've been captivated by a charming Normandy cottage or a beautiful Provencal farmhouse and decided to make an offer? Bravo, you're edging ever closer to your dream!
Yet, it's no secret that you won't be the only admirer eyeing this property today. Competition is fierce. To tip the scales in your favor, arm yourself with the Pretto attestation. What is it? It's proof you're financially prepared, making sellers confident and putting you ahead of the competition!
Step 5: Close the deal with your "Promesse de vente"
Get ready to put pen to paper because this contract you're about to sign marks one of the pivotal moments in your property purchase journey. It's all about laying down the terms and conditions for your future property acquisition. As mortgage brokers, we're particularly focused on the suspensive conditions linked to your future loan.
Here's the deal: Once you sign, your seller can't change their mind – they've already agreed to your offer. But you still have ten days to think it over.
Now, let's talk about suspensive conditions – they're like safety nets. If certain requirements aren't met within a specific time, you can back out of the contract.
When it comes to finances, here's what's on the table:
- Loan amount: This is the maximum amount you're willing to borrow.
- Loan term.
- Interest rate.
- Loan approval timeframe: You have a deadline to secure that mortgage offer. It's usually 45 days, but can be extended to 60 for more flexible negotiations with banks.
Step 6: Secure your mortgage with Pretto
Get ready for the real deal – say hello to Pretto! Let's be clear: when you work with us, we're not just along for the ride; we're committed from the start. At Pretto, we get the challenges of buying property as a non-resident. That's why we've gathered a team of top-notch, specialized brokers who understand your concerns and the ins and outs of your situation. They're here to back you up and negotiate with the banks on your behalf.
When you grant us the mandate (that's the crucial step to accessing the banks' offerings), it's like peeking under the hood of a car. We'll give you clear details about what each of our partner banks has to offer:
- The interest rate on your loan,
- Any perks like early repayment penalties,
- Flexibility perks (think payment modulations and suspensions),
- The timeline for getting that golden loan agreement,
- The bank's stance on social and environmental responsibility.
Now, it's up to you to chart the path ahead. While we're here to provide support at every turn, the power to make decisions is in your hands. Consider us your dependable co-pilots on this journey. At Pretto, transparency isn't just a motto – it's the foundation of our service.
The mortgage process can be complex, but buying a house in France becomes easier with expert guidance.
Step 7: Seal the deal with your loan offer
You're almost there! Typically, it takes about a month from the file appraisal to receive your loan offer. Once you've hit this major milestone, the next steps are pretty straightforward and unfold in two stages.
Reviewing your loan offer
Giving your loan offer a thorough once-over is a vital part of the property-buying process.
Important note
If you pay off your loan early, your bank will stop charging the interest mentioned in the contract. They might also ask for a penalty, which is usually half a year's interest or up to 3% of the remaining amount you owe. We can often negotiate with the bank to avoid these penalties.
Signing the offer
You can only sign and send back your loan offer 11 days after you get it. This starts a mandatory 10-day cooling-off period, starting the day after you receive the document. Remember, if you return the offer before this time, the bank has to redo it, which could delay things. The same goes if there are any corrections or notes on your offer.
Your purchase of property in France is almost complete once you've signed the deed.
Step 8: Completing the deed
Once you've finalized the deal by signing and sending back your loan offer, there's one more thing to do. Make sure to ask your notary to send their request for funds. This official letter instructs your bank to transfer the loan amount to the notary's account, ensuring your seller gets paid on time.
Now it's your turn. Remember to transfer your contribution to your notary's account, minus guarantee, administration, and brokerage fees, which will be deducted automatically. Need help with the math? Don't worry! We're here to help you through every step of the process!
Congratulations, you're officially a homeowner!
While we won't physically be there for the signing of your deed of sale – the ultimate step in your real estate journey – know that our support doesn't end there. On this momentous day, as you receive the keys to your new home, we extend our heartfelt gratitude for entrusting us with this adventure.Once we've finished up your paperwork, know that we'll remind you to send any property-related invoices to your banker, especially if you've taken out a loan for it. But most importantly, we want you to feel confident that we're always here for you. If you ever have a question, don't hesitate to contact your dedicated Expert.
