Loan offer is a legal document defined by the banking law. This document sum up and governs the obligations of the lender and the borrower such as the amount, rate, duration, insurance and repayment terms etc.
The bank sends you the papers of the loan offer free by mail. A receipt, 10 days of time you are willing to accept or reject this offer, and then you send the documents stating your decision.
In case of refusal, no payment fees can be requested either by the broker or by the lending institution.
If you accept the offer, you have to be dated and signed and then you send by mail to the loan offer. As long as these conditions are accepted by both parties, the loan offer is transformed into the loan agreement.
Several details to be pointed out in the loan offer, such as the identity of the lender, the nature of the loan (under agreement, interest-free loan or traditional bank loan for example), the purpose of the loan (what type of property) the date on which funds are available, the credit amount, the total cost and percentage rate, collateral requirements (including insurance) and cost, the conditions of the loan transfer to another person and finally the amount of tuition to be paid to the lender in case of non-conclusion of the sales contract.
Concerning the loan to a fixed interest rate the annexes about amortization schedule detailing for each schedule, the distribution of reimbursement between the principal and interest are required.
With regard to the variable rate loan, schedules are required. Indeed, the lender must attach a notice outlining the terms and conditions of change in interest rates, and attach a document of information containing a simulation of the impact of a change in the rate of monthly payments, the loan and the total cost of credit.
Warning: Changing the conditions for obtaining a loan whose interest rate is fixed (amount or credit rate) results in the delivery of a new preliminary offer.
Moreover, the loan may be accompanied by a grace that is to say that during this period you only pay interest, without repaying the capital borrowed
Remember that brokers offer tailor-made financial solutions for financing are varied. Indeed, the loan allows flexible to adjust the amount of repayments according to the evolution of income levels and ready to help reconcile multiple loans (eg, principal loan + loan 0%) with a total monthly payment constant throughout the credit period.