The amount of a home loan makes it possible to finance a large-scale real estate project. Its payment is always preceded by an offer from the lender to the borrower who must validate it if it suits him. For how long is this offer valid? We tell you everything in this article.
What is a home loan offer?
When we talk about a home loan offer, we are referring to a contract sent by a lender to an individual in need of financing to build a property. To have legal value, the offer must present elements such as:
- the identities of the parties concerned;
- the reason for the mortgage;
- the nature of the loan;
- the term of the loan;
- the amount of the loan;
- the obligations of the borrower;
- loan transfer conditions;
- the loan amortization table;
- the mention of freedom of choice of insurance;
- the annual percentage rate of charge;
- the date of access to funds.
Once each of these elements is clearly specified and signed by the lending institution, it can be sent to the borrower so that he can study it on his side.
How long is a home loan offer valid for?
A home loan offer sent respecting these elements has a validity period of 30 days, including public holidays and non-working days, once it is received by the borrower. During this period of validity, the bank or the lending organization is no longer able to make changes to the conditions of the offer.
This will make it possible to respect the reflection period of the borrower and the acceptance thereof. Once this period has elapsed, the organization can propose a new offer without being obliged to keep the conditions of the old one.
How is the mortgage offer sent?
The home loan offer is first issued in the form of a contract that meets the standards required by the lender after a careful study of the borrower’s file. To ensure that the validity period is fully respected, the contract is not delivered by hand, but sent by post without the lender having to pay anything.
The registered letter with acknowledgment of receipt must be accompanied by an information sheet with the details of the contract. This is an important sheet, because it allows the borrower to compare the offers of different establishments in the event that he has made several requests. Note that the offer can also be sent in a dematerialized way through a file sharing platform or by email.
What is the deadline for accepting the mortgage offer?
Since the Scrivener law, the borrower is granted a period of 10 calendar days to reflect on the lender’s offer from the date on which he received it. This means that for an offer sent on December 1, the borrower cannot give his decision of acceptance or refusal until December 12.
This delay gives him the necessary time to study all aspects of the offer without feeling under pressure. Nevertheless, it is important to keep an eye on the validity period of the offer mentioned above. In our example, the borrower has until December 31 to communicate his decision to the lending institution for the rest of the process.