Subtleties of lending for construction

In the past few years, the emerging trend has been clearly observed that an increasing number of residents of large cities are trying to move to the place of constant deployment of the suburbs. However, not everyone, attracted outside the city with fresh air and silence, can afford to buy a ready -made cottage immediately or build it for their own cash. In connection, with this fact, now an application for a loan for building your home is almost one of the most common in all banks.

But there are certain features of lending that must be taken into account. The very first problem that awaits the future homeowner is the definition of a specific amount. The construction of the house is a very uncertain and protracted process – if you take money less than required, it may not be enough to finish construction, and if more, you have to overpay a rather tidy amount. Second, this is a credit history. Your identity will necessarily be led through a special base, and therefore, just before you take a loan, you must definitely contact the Russian or Ukrainian Bureau of credit stories (it all depends directly on the country where you live).

The next moment is the key. Usually it acts as a plot of land on which your home will stand after a certain amount of time. A few often borrowers as a deposit provide their real estate. But at the same time, it should be known that not any site is suitable as a collateral as a collateral. Firstly, it should be implicitly in your property, and secondly, those communications that are needed for living in the house, for example, electricity, gas and water, should approach it.

In the case of a regular loan, cash loans without income certificates are available in almost any bank, but to receive a loan for the construction of a cottage or an ordinary country house, you need to run a little, and collect all the necessary certificates.

A loan for construction goals is attributed to long -term targeted lending, and usually the bank provides its customers with the opportunity to use its funds up to thirty years. The interest rate of your loan will be affected by the loan term, the amount of the loan, the amount of the provided package of documents, financial condition, and so on. But, even if you still manage to fulfill all the conditions that the bank set, the rate on the loan for the construction of a new structure will be slightly higher than, for example, when acquiring ready-made housing in a mortgage.