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How to prepare my application for a first-time buyer's loan ? Ask Guy !

Welcome to "Ask Guy", the series of blog articles that gives you all the keys to make your first property purchase in the best conditions. Today's topic : how to prepare my application for a first-time buyer's loan ? 

Guy Sinner, Hub of Home manager

In this article, discover : 

- How to prepare your application if you do not yet have a property project
- How to prepare your application if you already have a property project 
- Conditions to be met to benefit from a housing loan

I’d like to buy my first home and I have no idea what I’m doing. Tell me Guy, where should I start? Which steps should I consider, when preparing my application?

This really depends on one question: do you already have a project in mind or is it really just about knowing which amount you can borrow once you’re looking to acquire your first property?
If you don’t have a specific real estate project in mind (yet), we can always run a simulation to estimate the amount you can borrow, without going into too many details. Naturally, we’ll need some information about you for this simulation, such as gross income and other loans you’ve taken out (e.g., personal loan for a car), for the estimated amount to be close to reality. The simulation allows us to calculate your loan capacity based on your personal situation. 
One of the ideas behind the Hub of Home is that anyone looking for information around housing can just walk in. This is especially for people who are looking for advice and expertise before they start looking for a property. If you’d rather make sure you don’t have to wait for one of our advisors to be available, you can set up an appointment with me, or someone from my team here. 

What if I already have a specific project in mind. How should I prepare my application?

Let’s say you do have a project in mind. Some people come in to see us, and they know exactly what they want. If this is the case, the best thing to do is to bring all the relevant documents that we usually ask for, to your first appointment. When setting up your appointment, we’ll send you a checklist and a personal information sheet. Once we have all these documents, we can get straight to the point. 
Get an insight into our checklist. You’ll need:  
- a copy of your ID,
- an employment contract or three salary slips,
- an account statement if you’re not yet a Raiffeisen client.
- etc… 
If you’ve already signed a sales agreement, the best thing for you to do, is to bring all the relevant documentation, including the signed sales agreement, to your appointment. But pay attention, the sales agreement is a legal and binding document. So make sure of knowing the amount the bank is willing to lend you in advance. 
Other documents that could be relevant in this case:
- plans of a future construction project,
- general specifications for a future construction project or a new construction,
- plans for renovation works or the construction of an extension.

Are there any minimum requirements that must be met if I want to take out a loan with you?

It all depends on the type of application. 
Are you single, in a relationship or do you have children in your care? If you’re taking out a loan with your partner, your purchasing power might be higher, whereas a couple with children might need to consider higher daily costs. Certain thresholds must be respected to avoid the possibility of over indebtedness. For this reason, it is best to be transparent about your personal situation, your income, and other loans. What most people forget, is that next to the price of the property you are looking to acquire, other costs such as notary costs or mortgage insurance are added to the final cost, which is also considered in your request.
If you don’t meet all the typical requirements, additional guarantees, such as providing your parents as guarantors, taking out a mortgage on another property or applying for a state home loan guarantee, can make up for a lack of savings.

If you need more details, do not miss out on our “housing talks”, which are dedicated informative sessions on housing and related topics. All information on the next session and how to register can be found here.

Do you have a project or questions ?

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