Lenders, panel and loan offer
The agreement in principle: what it is worth, what it does not commit you to, and why it falls through
An agreement in principle does not commit the bank: the five reservations to lift, the document closing each, and the protection not to give up.
An agreement in principle does not commit the bank: given on declared and not yet verified elements, it merely states that the file falls within its lending policy. It is not a loan offer, it fixes no condition, and no text sets a validity period for it. Only the loan offer commits the lender; until then, the suspensive condition of obtaining the loan remains the protection to maintain.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- An agreement in principle is not a commitment: it concerns declared and not yet verified elements, and it is not a loan offer.
- Five conditions remain to be lifted after the agreement in principle, from declared income to the compliance of the property, by way of the insurer and the guarantee.
- Only the loan offer commits the institution to given conditions and opens a reflection period, which cannot be shortened, before acceptance.
- No text sets a validity period for an agreement in principle: it falls through as soon as an element of the file changes, without the need to withdraw it.
- Renouncing the suspensive condition of obtaining the loan on the basis of an agreement in principle causes you to lose a legal protection that this document does not replace.
An agreement in principle does not bind the bank: only the loan offer does. Here is how to lift its reservations without losing your protection. The entire process: lenders, panel and loan offer.
Does an agreement in principle bind the bank?
No. It relies on your declarations, which have not yet been verified. It does not constitute an offer, it fixes no condition and it triggers no deadline.
Its reservations are your list of things to do: documents to verify, agreement from the insurer and the guarantee, and the final assessment.
Five conditions to lift, one document for each
| To verify | What lifts it | What causes it to fail |
|---|---|---|
| Income and liabilities | Payslips, tax notices, bank statements | An undeclared loan, a recurring overdraft |
| Banque de France file | The consultation by the bank | A forgotten entry, even if regularised |
| The insurer | The insurance certificate | A medical deferral, a surcharge, an exclusion |
| The guarantee | The agreement of the surety or the mortgage | A refusal of surety |
| The property and the transaction | Complete preliminary contract, property surveys | A property outside the criteria, a modified financing plan |
A sixth weighs as much: the bank's lending budget on the day of the decision. The documents, in order: the loan file document by document.
Proof of financing, agreement, offer: who is bound
| Document | What it binds |
|---|---|
| Proof of financing | Nothing, on the lender's side |
| Agreement in principle | Nothing definitive |
| Loan offer | The lender, on its conditions and for a minimum duration |
Only the offer obliges the lender. It opens a reflection period, which cannot be shortened, before any acceptance.
- Délai de réflexion de l'emprunteur 10 jours
- Maintien minimal des conditions de l'offre 30 jours
Le délai de réflexion est incompressible : l'acceptation ne peut intervenir qu'à partir du jour suivant son expiration, la réception comptant comme point de départ. Ce n'est pas un délai de rétractation.
- En vigueur depuis le
- Source
- Article L. 313-34 du code de la consommation — Légifrance
The countdown: the loan offer and its deadline.
How long does the agreement remain valid?
The period stated on it: no text fixes its duration. It also lapses as soon as the file changes (amount, deposit, property, employment) or drags on.
Retain your suspensive condition
It applies by law as soon as the price is paid, even in part, by a loan. Its duration has a legal minimum. Loan not obtained: any sum paid is returned to you.
C'est un plancher, pas une durée usuelle : les compromis stipulent en pratique bien davantage, et rien n'interdit aux parties d'allonger. Le point de départ est la signature de l'acte, ou son enregistrement lorsque l'acte sous seing privé y est soumis à peine de nullité.
- En vigueur depuis le
- Source
- Article L. 313-41 du code de la consommation — Légifrance
Never waive it for an agreement in principle. By the time it arrives, the withdrawal period has often already expired: the condition is all you have left.
Il court à compter du lendemain de la première présentation de la lettre notifiant l'acte, et non du jour de la signature. Il ne se confond pas avec le délai de réflexion sur l'offre de prêt, qui porte sur un autre document et à un autre moment.
- En vigueur depuis le
- Source
- Article L. 271-1 du code de la construction et de l’habitation — Légifrance
Four steps to move from the agreement to the offer
- Send all the documents in one go: a file completed in batches is re-examined at each submission.
- Start the insurance immediately: with a medical examination, it is the condition that takes the longest to lift.
- Extend the suspensive condition before its term, in writing.
- Do not sign anything irreversible before the offer.
Agreement lapsed? See the loan refused after the preliminary contract. Gather your documents or review the agreement by phone.
Create your file: I submit your documents to the banks.
Sources
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