In order to be able to renovate, improve or expand, a bank can give you credit. To obtain this loan, your project must be relevant and feasible. Here are some tips for getting your Work Loan.
How does the work loan work
Financial organizations will not commit to lending you money if the amount of work exceeds the value of the property. This is why the loan work can be accepted or rejected by the banks if you have a credit in progress or not.
If the loan is going on a real estate
- Obtain a certificate of value
- View the “outstanding principal” on the amortization table of the last paid loan
- The maximum amount that can be financed
A bank usually finances 80% of the difference between the value of the property and the remaining capital that is due, the banks do this to be sure to be in the possibility of recovering their due in case of a default by the borrower.
If no loan is outstanding on real estate
You must then obtain a certificate of value, the total amount of work must not exceed the value of the property, less a safety margin set at 20% in general.
Show that your project is relevant
Financial organizations will try to find out if your work will increase the value of your property.
Works aimed at energy performance
- Make an energy performance analysis that highlights the current amount of home consumption that relates to the part where the work will be done
- Anticipate the energy performance figures that will be given after the planned works.
If you want to add a space or expand, you need a real estate agency or a notary by means of a certificate of value. This selling price per m² of the surface that will be added according to its destination.
This type of beautification work done by the borrower runs after getting a quote from the store where you buy your products.
How to choose a provider
- The persons taking charge of the work must be professionals accredited to the RC (trade register) or craftsmen
- Make a quote request that includes a business name and the registration number of the professional
How to Apply for a Work Loan
A loan application form must be filed with a financial institution. This file includes:
- Proof of identity and proof of residence
- The last three statements of account
- The last tax notice
- Evidence of the work to be done
- Evidence of the relevance of the work to be performed
- The certificate of value of the real estate
- A credit amortization table on the property concerned
- Proof of income
- Supporting credits in progress
When jobs meet certain energy performance criteria, you can get a Zero Rate Eco-Loan depending on several conditions.