To avoid any inconvenience, our credit experts advise you to prepare your loan documents before looking for your future home.
What is happening now?
An accumulation of various events has led to a real bottleneck of applications in a context where banks are understaffed.
The volume of loan applications is high and with the announcement that interest rates will remain at historically low levels, more and more households are looking to reduce the cost of their loan. Renegotiations now account for almost 15% of new loan applications. Admittedly, this is less than the 40% reached at the beginning of 2020 and the 60% around 2016, but there has indeed been a significant increase in recent weeks.
At the same time, many banks are restructuring, early retirement schemes are being proposed and new hiring is being reduced.
The health crisis is also playing a role with the increase in covid and contact cases, not to mention burn out.
In addition to these factors, there is the need to burn off as many days of holiday as possible within the legal period.
All this explains why there are fewer and fewer staff available in the banks. As one bank employee put it: "There are only five of us left to do the day-to-day work at a workstation with 10 people.
Despite everyone's good will, the processing times for credit applications are 2 to 3 times longer than usual.
For a simple agreement in principle, you now wait an average of 2 weeks and sometimes even 3 weeks to get an answer. It used to take 2 to 3 days.
For a final agreement, or simply to obtain a contractual offer, it takes 2 to 3 weeks longer.
You also need to add time for the client to think about the matter, who may also try to negotiate his loan with another institution, which will also lead to additional delays.
These delays are particularly penalising for a prospective buyer and even for a property professional to accept a simple reservation, as he will favour profiles with good guarantees for his client.
For these reasons, our credit experts advise you to contact us at the very beginning of your project.
We examine your borrowing capacity and provide you with a "feasibility certificate" free of charge and with no obligation on your part.
This certificate will add credibility to your application and weight to your case if you are competing with other buyers.
To establish it, we will ask you for all the documents you will need to provide us to obtain your real estate loan.
When you have finally found your future home, the CREDITSIMMO.LU experts will prepare your tailor-made loan application and submit it to several banks at the same time. This will increase your chances of getting a loan confirmation with less loss of time and under the best market conditions.
Together, we will select the most suitable offer for your needs.
Please feel free to apply online if you would like to receive information about our offers and services.