The loan agreement, published by the bank, marks the last step before the release of funds. Its wording obeys strict legislation and should be read or read carefully before signing. What there is to know.
Before the contract, the loan offer
The loan agreement contains the loan offer. This requires the submission of supporting documents including: the building permit, the ten-year guarantee, the plan of mass and situation, the diagnosis of energy performance (DPE), the contract of reservation or construction.
Some loans like the Zero Rate Loan or the Social Accession Loan require more documents. It is advisable to inquire with each organization or with a notary to send a complete file to the bank.
The mandatory legal information of the loan agreement
The bank must obligatorily send the loan offer by postal mail to the borrower. Once the document signed by the borrower has a legal deadline of 10 days of reflection, the document becomes a loan agreement.
To know: As long as the borrower has not accepted the offer, no amount can be claimed or withdrawn by the bank.
For information, here is the legal framework of the loan offer. According to the law "Scrivener 2" of July 13, 1979, the mandatory points to appear on the loan agreement:
- The identity of the parties and any bonds.
- The nature, purpose, terms and conditions of the loan and the conditions for making the funds available.
- For fixed rate loans, a schedule of amortizations detailing, for each maturity, the distribution between capital and interest.
- For variable rate loans, a note presenting the terms and conditions of interest rate variation and an information document containing an indicative simulation of the impact of a variation of this rate on monthly payments, the duration of the loan and the total cost of credit. In addition, the lender is required, once a year, to inform the borrower of the amount of capital remaining to be repaid.
- The amount of the credit that may be granted, the total cost and the overall effective rate (APR). A point to watch closely and that can be a source of conflict, if it does not appear.
- The insurance and the guarantees which condition the conclusion of the loan as well as their costs.
- A statement that the borrower can take out insurance with the insurer of his choice.