Mortgage basics
Proof of funding: what it is really worth, and how to obtain it
Requested by the agency before the viewing, the proof of funding does not bind any bank. The seven lines that give it weight, and how to obtain it.
A proof of funding does not bind any bank: it binds its signatory to the seriousness of their analysis, and only the loan offer binds an institution. It shows the seller that a credit professional has examined the documents and what transaction amount appears financeable. It is obtained on a complete file, is not charged separately, and never dispenses with the suspensive condition of obtaining the loan.
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
- A proof of funding does not bind any bank: only the loan offer obliges an institution, and it never dispenses with the suspensive condition.
- A serious proof of funding carries seven verifiable lines: income retained, charges retained, debt-to-income ratio, term, interest rate assumption, validity, signature.
- The parameter that most distinguishes two proofs of funding is neither the rate nor the term, but the income retained, which differs from the salary displayed on the payslip.
- A proof of funding is never charged separately: no sum can be collected before the effective disbursement of the loan funds.
- A “certificate of borrowing capacity” obtained online without examination of documents contains none of the lines that give a genuine proof of funding its value.
A proof of funding demonstrates to the seller that a professional has examined your documents. It is only as good as its seven lines. It is one of the fundamental rules of mortgage lending.
What it commits
Only the seriousness of its signatory: no lender is bound before the loan offer. Always retain the suspensive condition in the preliminary sale agreement.
Durée minimale d'ordre public : un compromis peut prévoir plus, jamais moins. Une attestation de financement ne justifie pas d'y renoncer, et renoncer à cette condition vous fait perdre la protection du code de la consommation.
- En vigueur depuis le
- Source
- Article L. 313-41 du code de la consommation — Légifrance
The other false commitment: the agreement in principle.
The seven lines that give it weight
| Line to look for | Why it matters |
|---|---|
| Income taken into account | The basis, which differs from the displayed salary |
| Expenses taken into account | A forgotten car loan changes everything |
| Debt-to-income ratio obtained | The only comparable indicator |
| Intended term | Without it, the amount means nothing |
| Interest rate assumption | If too low, it inflates the amount |
| Date and period of validity | Without a date, it is worth nothing to a seller |
| Signature and registration number | Verifiable in the register; a logo is not sufficient |
A “certificate” filled in online without documents carries none of them: it serves to collect your address.
The two limits of the calculation
The maximum debt-to-income ratio and the maximum maturity imposed on the banks. A serious certificate states which one limits your transaction.
35,00 % ()La maturité additionne la période de différé et la période d'amortissement. Une attestation qui suppose une durée supérieure suppose une dérogation, ce qui doit alors être écrit.
- En vigueur depuis le
- Source
- Décision D-HCSF-2021-7, art. 1er — Légifrance
See the debt-to-income ratio, your borrowing capacity and the instalment. What most often distinguishes two certificates: the income taken into account.
Does the agency require it before the viewing?
Provide the complete certificate, never your payslips. To obtain it: identity, income, bank statements, amortisation schedules, proof of contribution (the exact list). Complete file: a few hours to two working days.
Its price: nothing before the release of funds
La règle n'est pas une faveur commerciale : elle s'impose à toute la profession. Elle ne signifie pas non plus que la prestation est gratuite — des honoraires existent, ils sont dus après le déblocage des fonds.
- En vigueur depuis le
- Source
- Article L. 519-6 du code monétaire et financier — Légifrance
Are you being asked to pay for a certificate? This is irregular: Article L. 519-6 of the Monetary and Financial Code prohibits it (verify an intermediary).
A clue: the footnote
Un crédit vous engage et doit être remboursé. Vérifiez vos capacités de remboursement avant de vous engager
Point rarement dit correctement : cette mention est prévue par l'article L. 312-5 du code de la consommation, qui relève du chapitre consacré au crédit à la consommation. Elle n'est pas légalement exigée en publicité de crédit immobilier, où les articles L. 313-3 et suivants ne la prévoient pas. L'afficher reste un usage de place ; la présenter comme une obligation du crédit immobilier serait inexact.
- En vigueur depuis le
- Source
- Article L. 312-5 du code de la consommation — Légifrance
Agencies: see the referral process. A call initiates the review of your file (contact).
Create your file: I review your documents.
Sources
Read next
- Mortgage in Lyon: frequently asked questions
- Mortgage application: the exact list of documents to provide The documents required by profile, the order that avoids a three-week delay, and what the bank really reads in your last three bank statements.
- Debt-to-income ratio: the HCSF rule, its derogation margin and how the bank applies it Calculate your debt-to-income ratio as an analyst would: retained charges, residual income, HCSF derogation, and the levers to get back under the cap.
- Net take-home, net payable, gross: which income does the bank actually use? Net payable, gross, taxable, bonuses, dividends, rents: what the bank actually uses to calculate your borrowing capacity, before you start house-hunting.
- Estate agents and mortgage lead generation: where referral ends and intermediation begins Estate agencies: where the code draws the line between referring and intermediating in mortgage lending, and the five clauses that make an agreement clear.
All articles on this topic: Mortgage basics
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