How long to get a credit buyout response? There is no specific answer to this question. It all depends on the nature and the complexity of the case. The only certainty: the procedure for buying consumer credit will be shorter than that for grouping home loans.
Besides, taking the time to properly build up a file for a credit buy-back is a first step so that your file can be processed more quickly. From the response time to the withdrawal period, including the reflection period: what are the elements to know and the pitfalls to avoid? We tell you everything.
Release of funds from a loan buy-back: what does it consist of?
The release of funds is the last step in a loan buyback operation. After contracting the new loan, the lender releases the agreed amount. This sum is dedicated to the reimbursement of debts included in the repurchase of credits.
The remaining capital due and any early repayment indemnities are financed by releasing and reimbursed from the original financial institutions.
More specifically, in the context of a buyout of a home loan with a mortgage guarantee, the sums are released through the notary. In the other cases (repurchase of real estate loan agreed with a surety or repurchase of consumer loan), the unblocking is directly carried out by the new bank. This will then send the reimbursement by bank check or by transfer to the financial organizations concerned.
What is the average time taken to release funds from a loan repurchase?
The time required to release funds from a redemption or a grouping of credits may vary depending on the financial institution and the contact person. However, it is possible to see an average of the time required to release funds for a loan buy-back:
- for a repurchase of mortgage with mortgage guarantee, the delay of release generally varies between 2 and 3 days;
- for a repurchase of real estate loan without mortgage guarantee or within the framework of a repurchase of consumer loans, the release of the funds takes place immediately upon reception of the compliant loan offer and signed by the borrower.
The deadline for releasing funds for a buyout of a mortgage with mortgage guarantee is therefore extended, in connection with the essential intervention of the notary in the circuit.
What is the response time of the lender?
Before starting a procedure concluding with a loan repurchase, it is essential to check if your request is not in contradiction with the criteria which define the refusal of the loan grouping. What are they ?
First, you must have a stable borrower profile and be resident on French territory. If one of these two points is not attested, be sure to put all the advantages on your side by correcting your weaknesses and your failings to present the best profile it is. The debt ratio and the remainder of living are carefully studied by the banks, it is thus advisable to be informed on their method of calculation in order to present its file in its best light.
Then, you can send your loan repurchase project to your bank, which is then called “renegotiation”, or probe competing lending institutions for comparison. Then there is a waiting period, the time that the internal engagement committee of each establishment contacted consults and delivers its response. When the agreement is obtained, a deadline for processing the file must be respected.
It is therefore necessary to count about ten days when the file includes all the required supporting documents. This period of time is longer when buying back credit including real estate. Indeed, the lending establishment must carry out an appraisal of the house or apartment, then attest to its value and the checks as well as the formalities to be completed are longer. Ditto with a notary in the context of a cash purchase.
What is the waiting period for the loan buyout offer from the lending organization?
When the credit consolidation request file is accepted by the bank, you will then receive a loan repurchase offer. It’s your turn to play the watch by taking the time to think carefully about the various proposals, to analyze them or even compare them with other offers delivered by other lending institutions.
Note that your commitment does not occur until you have signed the contract explaining the nature of the credit and the various clauses. As part of a mortgage buyout of up to 60% minimum, the subscriber benefits from a 10-day cooling-off period as stipulated in the Scrivener law, during which he can mature his choice to ultimately accept or refuse the commercial proposal made.
The signing of the loan offer formalizes the agreement. However, some organizations play the watch by relying on the legal withdrawal period. On average, the release of cash funds and the redemption of old loans take place over a month.
What is the withdrawal period for a credit buy-back?
The withdrawal period is 14 days for a consumer credit buy-back offer, this terminal being established by the Cogilaw company since May 2011.
To withdraw, you must send by post a registered letter with acknowledgment of receipt. Slide inside a letter of withdrawal to the establishment that made the offer. Generally, you just need to fill in the withdrawal form which is attached to the credit buyback contract.
Note that you have no reason to justify your decision or to pay any administrative costs and other compensation.
The only exception occurs when funds have been made available before the end of the withdrawal period. In this case, the borrower who retracts has 30 days to repay the sums collected to which is added the total amount of interest calculated over the period.
Good to know : activating your right of withdrawal with a view to consolidating a loan implies the termination of back-to-back services like various insurance policies.
What is the deadline for obtaining a mortgage loan repurchase?
Obtaining time is necessarily longer because this category of credit buyback operation requires a mortgage guarantee. However, this document is an act necessarily drawn up by a notary.
This is an additional step in your journey as a borrower, because the drafting of the notarial deed comes before the signing of the buyout offer. The reorganization of your debt may therefore require an estimate of the value of the property, lengthening the deadlines accordingly. Before being issued a finalized loan offer, it is therefore necessary to allow a month.
How to reduce the time to make a credit buy-back?
If it is not possible to take shortcuts in the procedure or to be generous with the deadlines set by law, certain common sense reflexes allow, failing not to gain, not to waste time. You must prepare your file beforehand by clearly defining your objectives:
- reduce my monthly payments;
- take advantage of a lower borrowing rate;
- finance a new personal project, etc.
Begin to analyze your personal, family and property situation yourself, taking into account future developments:
- transition to retirement;
- change of job;
- inheritance that feeds your heritage;
- more dependent children, etc.
Consider making estimates on the gains brought by a credit repurchase by operating simulations online or through an intermediary.
Finally, bring all the supporting documents in order to constitute a complete file, which will allow the lending organization to study it carefully as soon as it is filed. And if you lack the time to do the procedure yourself, the option of the intermediary, the loan repurchase broker, seems ideal.