When finances are cut off by too much borrowing, it is possible to turn to a redemption of credits . A very effective financial operation to reduce the amount of monthly payments and extend the repayment period while having to deal with a single interlocutor. On the other hand, if once this assembly is revealed to be optimal and effective, it is nonetheless a process that can not be improvised and can not be done at the last moment. To ensure the success of a loan consolidation, it is better to be well informed about the various deadlines necessary for its effective implementation.
1 The time of the search for the offer: a not insignificant step
The time of the search for the offer: a not insignificant step
First and foremost, it is important to take into account the time it takes to find the best offer for your needs. To carry it out the borrower has two options: to offer the services of a broker or to perform several simulations and quotes online.
In the first case, seeking advice from a broker can save a lot of time. Indeed, this professional, as a true expert in the financial sector, will accompany his client throughout his research. He is also the most effective intermediary to have a complete overview of the offers available on the market. It has all the brochures and tariffs to avoid the customer having to go fishing for information. A broker is therefore an ideal intermediary when one wants to subscribe to a purchase of credits without wasting time. But it will nevertheless pay a certain amount of money to afford the services of this professional.
Another, more laborious and therefore longer option is to conduct a careful review of the contract panel. For this, there are now multiple platforms on the Internet. These offer in a few clicks to perform an online simulation. All you have to do is enter the essential information about the future contract, such as the income of the borrower and his household, the number of loans involved in the operation, the number of monthly payments remaining or the duration of the credits in progress. It is then possible to directly receive a quote by email or to be called back by an operator.
This approach is certainly longer but it allows for a complete search and to play competition between market players, ie institutions specializing in credit and banks.
Whichever option you choose, some essential criteria must be taken into account in order to find the best repurchase agreement:
- the proposed rate
- the amount of monthly payments
- the proposed repayment term
- the remaining capital
- application fee
- prepayment fees
Criteria that will vary depending on the different institutions and the type of contract but will depend mainly on the file and the profile of the borrower.
A solid file rhymes with rapid response
To ensure a positive response but especially fast when applying for loan consolidation , it is essential to provide a complete file. The round-trips of emails, calls or mail to provide certain documents are the main reasons for an increase in the deadlines for completion of this assembly. Thus, the more complete a file is transmitted, the more the study of it and the response of the creditor will be fast. To save time, it will therefore be necessary to submit documents such as:
- the copy of the identity document
- the last three paysheets of the borrower
- bank statements
- proof of a pension
- the last tax notice
- rent receipts or title deeds
- statements of booklets or other savings products
- all documents concerning credits in progress
All these different elements will be taken into account at the time of the study of the demand and will especially allow to determine the rate of indebtedness of the borrower.
3 The deadline for accepting an offer.
After sending a complete file, the lender will rigorously study each document in the file. For a favorable response, it will be necessary for the internal commitment committee at the institution to vote and consult. This is to assess the risks and benefits of accepting the file.
In some cases, the creditor may request additional supporting documentation before making a decision. Consequence: the profile analysis time and therefore the formulation of the offer can be extended.
The response time varies from one bank or financial institution to another but also depends on the nature of the contract and the type of redemption structure. Indeed, it will usually take between one week and ten days before receiving a contract offer when it comes to consolidate only consumer credit (personal loan, car loan, work).
On the other hand, when the operation includes a loan of a property, the study of the file can be a little longer because sometimes it may be necessary to make an estimate of the property in question in the presence of a notary, this which greatly lengthens the procedure. For a repurchase of real estate credit it will thus be necessary to count two to three weeks before obtaining an answer.
With respect to the purchase of mortgages , the overall approach is much longer as some documents will have to be drafted with the help of a notary. The operation is also heavier and requires more checks before the release of funds. This will take place after a period of four weeks on average.
4 Unlocking funds: the last step
After receipt of the offer and signature of the contract, the borrower has a withdrawal period of fourteen days for consumption credits and ten days for mortgages. This is an obligation set out in the Consumer Code which governs this operation. This period may, however, be reduced at the request of the borrower.
After this period, the release of funds will intervene more or less quickly depending on the nature of the credits to be consolidated . When the installation concerns only consumer loans, the sum can be released almost immediately after the signature of the contract. With regard to a mortgage repurchase it will take between 48 hours and 72 hours before the release of funds. A delay that can be extended when the intervention of a notary is necessary.
5 What is the delay between two loan consolidation?
What is the delay between two loan consolidation?
It is possible to make several redemptions of credits as there is no legal restriction regarding a possible delay. On the other hand, depending on the institutions, some are very reluctant to grant several groupings. To be able to benefit from two credit buy-backs as a result, the client’s profile must be impeccable and his debt ratio must not be too high.
The redemption of credits is an ideal solution when many credits are running. It allows all to reunite by subscribing to a new loan obtained at a favorable rate. Therefore, it is possible to reduce the amount of monthly payments *. As a result, the repayment term will be extended and the total cost increased.