In addition to mortgage lending , an installment loan and a modernization loan are eligible. The last two types of loan offer themselves particularly, since no mortgage entry is made.
To realize a house construction, different types of loans are generally available. For example, it also depends on how high the total costs or the required loan amount will be.
For example, it may well be that the desired amount is less than 50,000 euros . However, what sounds cheap at first may provide for expensive financing . For smaller loan sums, credit institutions usually have to handle the same administrative burden as larger mortgages . Accordingly, such “small” loans are usually higher in their interest rate . In addition, in the case of mortgage lending, the registration of a mortgage must generally also be included. Because of this, advised in many cases to a usually less complicated installment loan .
In a conventional installment loan is often no land register entry required. Accordingly, there are no notary and land register costs for the borrower . In addition, most of the loan processing is much easier. A small drawback here is simply that the interest charge can be higher than a construction loan . However, borrowers benefit from greater flexibility and can wind up the loan sooner if necessary. In addition, higher amounts are possible here, depending on the income. Often, not even a prepayment penalty , which in contrast is levied on most construction loans.
As an alternative to an installment loan, however, offers a modernization loan. Such a loan is earmarked, which is not the case with a traditional installment loan. However, borrowers typically receive a cheaper rate of interest due to their conditionality. Usually, in a modernization loan extensions, which cost between 5,000 and 50,000 euros, can be financed. As with a installment loan, it is usually not necessary to enter the land register so that savings can also be made here.
KfW Bank offers a wide range of subsidies; especially when it comes to energy-efficient measures.
If, for example, the budding borrower chooses a modernization loan, then it may be possible to obtain a loan from Bank . This is especially true when the cultivation is heavily focused on high energy efficiency.
However, it is not possible to directly apply for funding from KfW Bank. The bank, where the borrower commissions the loan for cultivation, initiates the appropriate measures. In general, it is even the case that most financial institutions directly inform the borrowers about any funding opportunities available to banks .
KfW Bank loans are characterized, for example, by the fact that they are generally much cheaper than the “normal” loans of other banks, which clearly spares one’s own wallet. Because of this, it is strongly advised to keep this option open and to calculate the options in question well.
An extension would be well planned. In addition to a budget is also a cost plan to create. Afterwards it is advisable to compare different loan offers well together.
An extension is a big project and should therefore be planned with care. After all, it is here, for example, to observe the various construction regulations, to meet their own wishes and to find a financing that really fits. Because of this, it’s best to do the following:
First of all, it is important to present your own financial situation accurately. The best way to do this is to have a budget that lists the total monthly revenue and all regular and irregular expenses. The result is then the sum that is at your free disposal and from which the monthly installments can be deducted. Here, however, it is advisable not to spend the entire amount for the repayment of the loan , but to leave a certain buffer, for example, for suddenly incurred, necessary expenses and own use left. However, a budget is not just for your own information, but also for the banks. This is because when lending the loan, they ask the lenders for their exact income and expenditure.
Even before the application for a loan is made, a detailed budget should be drawn up. Here, for example, it is important to speak in advance with potential architects and craftsmen, as well as site managers, to obtain cost estimates and compare them well. Because in this way it is possible to realistically estimate which loan amount is needed. This knowledge is also indispensable for the banks.
Obtain credit offers:
The next step is to obtain different loan offers from different banks. Usually, when a loan request, the house bank is the first point of contact, but it is worthwhile to inquire with other banks. A quick, uncomplicated comparison of the various banks with their loan offers is possible, for example, with an online loan comparison . Here it is very easy to compare the various offers. It is important that the banks make a credit inquiry request and not a credit inquiry at the SCHUFADie Schufa, die Schutzgemeinschaft für allgemeine Sicherung, ist der wichtigste Ansprechpartner, wenn es um die Kreditwürdigkeit von privaten Schuldnern geht. Die Schufa besitzt Daten zum Zahlungs- und Kaufverhalten einer bestimmten Person und kann dadurch Prognosen erstellen. Bei(… weiterlesen)” >Schufa inquiry, because the latter is noted in the Schufa. With multiple loan requests to different banks, it could give the impression that the requests were all rejected. This in turn can help ensure that banks do not approve credit.
An extension provides about an increase in value of the house. However, the project should be well planned and various loan offers should be obtained.
An extension offers more space and ensures that the house increases in value. However, it is important to plan such a project well. For example, a loan, installment or modernization loan may be offered as credit . For both last mentioned credits, no entry in the land register is usually necessary.
Before applying for a loan, a budget and a budget should be drawn up. In this way, the aspiring borrower not only ensures that he is aware of the budding costs, but also that the monthly installment does not exceed personal financial resources. In addition, a cost plan helps to better assess the amount of credit needed. In addition, the banks also need this information.
In general, it is not advisable to simply select the “first best” credit. On the other hand, it is much better to compare the various offers of the various banks so that it is possible to select a loan with suitable, favorable conditions . Helpful in this case can be an online loan comparison.