Even if a written agreement from its bank is useful in many cases, this certificate can not replace the previous offer of loan which remains the only document binding the bank and which can only be opposed to the notary and the seller to prove that you have met the requirements of the suspensive loan provision in the compromise.
What is the legal value of an agreement in principle?
Regardless of the terms used and even if your advisor lets you know that the agreement is final, you can not require your bank to grant you the loan or even to comply with the conditions set out in the certificate. .
In addition, the agreement in principle is most often given ” subject to use “. This mention shows that we are far from a contract concluded between the borrower and his bank. Just, the latter undertakes to diligently to study your request.
The agreement in principle is only a favorable opinion that does not bind the bank.
Who makes the final decision?
The loan file is sent to the commitments department. The risk study will consist of an overall analysis of your situation. Even if the adviser in charge of building the file has given his opinion on the basis of written and verified documents , know that the analysts responsible for studying your request will not necessarily think the same way. Each item will be screened:
The level of your debt (the rate must be less than 33%).
The good performance of bank accounts (the study covers the last three months).
Professional stability (permanent contract, seniority …)
Personal contribution (the minimum required varies according to the banks: additional expenses to a minimum)
The remainder to live on (remaining sum once all credit maturities have been settled, including ongoing consumer loans).
What can be the reasons for the refusal?
You can ask your banker what could have motivated a refusal from his risk analysis service, when he or his head of agency had previously given a favorable opinion. In many cases, the borrower had not yet provided all the details of his situation at the time of the agreement in principle. Only analysts can then see an element that makes the file unfinable .
In many other cases, however, nothing seems to justify the negative decision and most often the borrower must be satisfied with an oral answer. No proof of the reason for the refusal of credit. It is also impossible to compel a bank to give the reason for the refusal in writing.
Get a loan after a first refusal: our advice
The loan is refused and after?
If you had signed a sales agreement, consider asking the bank for a certificate in writing and forwarding proof of the refusal to the notary. It is essential to play the suspensive clause of obtaining loan.
Despite this failure and if there is no major obstacle to funding (excessive debt, Bank of France …) you need to move on. If the property is still on sale and the seller is patient, you must quickly turn to another lender.
Play the competition. For this, call a broker. His approach is usually free and his expertise will save you valuable time.