Not everyone has their own money for shopping. Currently there is a loan for building a house. Often, financial institutions provide these loans for the security of a country or other property. What they need to minimize credit risk.
What does the lender pay attention to?
Banks impose a number of requirements on acquired objects, which are: real estate under construction and land. There are:
- Real estate must be registered with BTI, it must be recorded in the registration service as an unfinished building. In this case, it is desirable for the house to be built in half. Any communication necessary for the entire stay will house more than the lender. The land on which the property is built should not be rented. While the construction is not completed, do not pass all the necessary stages of the State Commission, the customer will have to pay high interest rates.
- The request of another creditor to register the loan for the construction of the house is submitted to the land. It should be privately owned, it is important to equip it with the necessary communication it brings directly to it. Banks often make decisions based on where the land is located.
The loan for the construction of the house is given only to a few banks
In recent years, however, this segment has started to demand. The suburban real estate market is quite popular with buyers. On the contrary, demand contributions to the birth of supply. We have to consider every step before using such a loan. The amount of the first payment is usually higher than a traditional mortgage, at least 30%. It is important to learn about commissions now. The house loan can be issued for different periods (from 3 to 30 years). For this, as well as the size of the loan, depends on the interest rate.
What is necessary?
List of documents needed to close a house loan:
- Information on the debtor’s income confirming his solvency.
- Documents on the plot.
- Permission to build facilities.
- House project.
- Other papers that a financial institution needs to issue a loan.
Various banks offer their home building loans. For example, Cream Bank is known for an interesting program, under which it issues loans to people to buy a residential house. As a promise considered as credited or residential premises. There are two options:
- The borrower draws a loan for the construction of a private house, which will be a lien in this transaction.
- The client draws funds to secure another property that was built earlier and is in his property. This loan has a special purpose – the construction of a house (residential).
The program concerned Cream Bank only “Construction of a dwelling house” differs from the program “Housing under construction” by a higher percentage. The program provides a loan to build a house for permanent residence. In order to decide whether or not to borrow the loan, the bank will ask for documents to be provided for premises that have become a lien. It will also need paper on the cover you purchased. Interest will depend on the term of the loan, the amount of the first payment, the currency of the loan. A big plus if the client is provided with a salary at Cream Bank.
Try to choose the right bank, paying attention to each item of the loan agreement to get to the issue of mortgages for building a house with full responsibility.