A negotiation is never over until the loan is signed, that could be the conclusion of my many exchanges with my current bank and my broker. In my double article on the difficult and long negotiation that I undertook, to obtain the best rate and the best conditions for the loan of my first building, I indicated that the 2 protagonists had rolled up their sleeves. They had each offered me very interesting offers, but I had finally decided in favor of the broker. But that was before…
I invite you to read or reread the articles How to properly negotiate your mortgage (1/2) and How to properly negotiate your mortgage (2/2) to put the elements into context. My exchanges with the bank and broker had enabled me to obtain 2 very satisfactory and above all very similar offers in the end. Without going into detail, I therefore had the choice between the 2 proposals specified here.
For its part, the broker offered:
My current bank offered:
I judged the overall financial difference to be insignificant . As already mentioned, I will not fail in a future post to specify the quantified assessment of this investment. I previously indicated that I had chosen the broker’s offer, for a reason that I will describe as non-objective: my bank only had to send me such an offer from the start!
But here, nothing is ever acquired. The day before the end date of my conditions precedent, I still do not have a written loan agreement from my future bank, despite my successive reminders… The stress is mounting a little… The broker finally reminds me:
I pass on my state of nervousness at that time, and in the evening that followed: I already imagine having to start the process from the beginning (search for goods, visits, …) or worse, pay compensation to the seller (which is legally not possible in the situation I was in, I inquired… 🙂 ). Because beyond this bad news, I found myself very deprived on this eve of April 10, which I will remember for a while: I had no loan agreement, and I had kindly indicated to my current bank that I declined their offer!
But fortunately for me, the story does not end there. A few phone calls later, I get 2 things that I had to have very quickly:
Friday, April 11, after discussion in the morning with my banker, I finally get my precious sesame: the loan agreement, which I hasten to send immediately to the real estate agency and my notary. My loan will therefore be made in my current bank.
Beyond my broker’s last-minute faltering, I ended up doing very well: I still obtained, partly thanks to them, excellent terms from my current bank. I lose my IRAs at 0€, but 10% is already not so bad… The project continues , but this pressure will encourage me to remain vigilant at each stage of the project, and future projects! The moral of this story is very classic: you should never, ever sell the bear’s skin before you have killed it!
Have you ever had to deal with this kind of situation? In your various investments or similar, have you undergone this type of last minute change likely to jeopardize your projects? How did you get out?