Buy a house with an outstanding loan
Find out how to get your home loan to buy a home, even with an existing loan.
The real estate project to buy a house is an important step, it is access to the property which must generally be done by means of a loan to the habitat. That is to say, you must apply to a financial institution to ask it to obtain a mortgage, this loan will be used to finance the purchase of the house and any work, through ” a monthly reimbursement over several years.
Buying a home with current credit: is it possible?
To obtain a mortgage, it is important to file a financing request by providing details on your financial and personal situation, we are obviously talking about income, expenses and any current credits. It is quite possible to obtain a mortgage by having one or more credits in progress, it is above all the debt capacity which makes it possible to meet the feasibility of the project, and not the number of loans.
Simply, if the simulation reveals that the borrower’s debt is too large, it is necessary to resort to a credit consolidation operation. That is to say buy back the loans being repaid by a specialized bank, which allows to recover the borrowing capacity and therefore to be able to consider a real estate purchase with a home loan. To validate the feasibility of this project, you must first simulate the grouping of credits into one.
Current credit and home purchase: two scenarios
There are two types of situations that can arise. The first is that the borrower has a current loan and sufficient repayment capacity, that is to say, that he will be able to obtain his mortgage and continue to repay his first loan. This scenario is frequent when borrowers have for example a car loan contract (or leasing) to be reimbursed following the purchase of a vehicle.
The second scenario is the financial inability for the borrower to combine the two loans, that is to say that its current repayment capacity does not allow to support the monthly mortgage, simply because the monthly payment of the first credit in progress is too large. In this specific case, it is possible to reduce the monthly payment of the first loan by having recourse, for example, to a loan repurchase, this makes it possible to extend the duration and to be able to accommodate a monthly loan for housing.
If you wish to obtain an estimate of rate, monthly payment, and duration for a mortgage intended for the purchase of a house, then you are advised to go to this page to carry out a simulation. On the other hand, if the monthly payment of your first loan seems high to you and you wish to make a mortgage to buy a house, it is advisable to carry out a loan repurchase simulation, taking care to specify the amount remaining to be reimbursed for the current loan, and specifying the amount of the loan to be financed.