Obtaining a home loan for a craftsman requires providing certain guarantees on income and activity. Here are all the explanations.
Craftsmen are professionals with a very specific status, as a rule, we will talk about an individual business where the professional and personal situation of the entrepreneur is confused. The craftsmen will adapt according to their profession and pay themselves a salary according to the activity of the company. In certain trades, there is a seasonality requiring slower periods and therefore restrictive management of fixed costs. There are also periods of annual leave requiring the business to be closed for several weeks. All of these will cause variations in the entrepreneur’s income.
Not only linked to the activity of the craftsman
But other professionals will also have to face this entrepreneurial problem and the banks have understood this. It is quite possible to obtain a mortgage when you are a craftsman, it is, however, necessary to provide guarantees in terms of income. The bank will generally ask for proof of income over 12 months, this will smooth out an average annual amount and be able to take income into account in the financing study. It will also be necessary for the craftsman to provide the last 2 balance sheets of the activity of the company, these documents having great importance for the taking into account of the incomes.
Guarantees to provide for the craftsman
Taking into account a craftsman status as an individual entrepreneur or any other legal status requires justifying the income on the one hand, but it is also necessary to justify the borrower profile with at least the last 3 statements of account. The bank must take into account the plaintiff’s situation by taking into account his income and expenses, which will allow the amount of the remainder to be defined. Guarantees can also be provided by the craftsman such as a personal contribution to complete the mortgage loan request. It is not compulsory to provide a personal contribution but the banks are more favorable to mortgage loan files presenting this guarantee.
On the mortgage loan guarantee side, the craftsman may be offered a bond through a surety company or a mortgage on the property. The surety companies are particularly careful about the situation of the borrower and they will have more stringent requirements than the bank. If the deposit is not possible, the craftsman can always count on the mortgage of the property. Finally, the presence of a co-borrower is a real positive point, provided that the latter has a professional situation compatible with the requirements of banks (permanent contract, civil servant, retiree, partner, etc.).
Simulate the mortgage
Each situation is specific and requires a personalized approach, it is for this reason that it is strongly advised to the craftsmen of simulation an application for a mortgage. This makes it possible to obtain several financing proposals and to be able to compare the offers of banks. The borrower is thus in a position to choose the best proposal to finance his real estate project. This simulation is free and without obligation.