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Month: February 2020

Bank offers loan for renovation costs.

A renovation, regardless of whether in the condominium or in your own house, is always associated with a high capital expenditure. Even beautiful and modernized real estate sooner or later always needs large and small renovation measures, which of course you as the owner have to carry out yourself. Since there is often even a mortgage to pay off the property in the first place, the money required for artisan and material costs is rarely available in full.

Financed amount for renovation costs

Financed amount for renovation costs

The entire amount or the resulting difference can be financed by a loan for renovation costs. The exact loan that is taken out depends largely on the type and scope of the renovation. Smaller jobs can usually be financed through an installment loan, a comprehensive renovation or a complete renovation sometimes even requires a building loan. It is therefore important to inform yourself as a data subject and owner beforehand.

What is being renovated is no less important than the scope of the renovation and who is doing it. Because there are also considerable cost differences among craftsmen, which cannot always be justified solely by performance. In addition, the materials must of course be provided by the user, unless otherwise agreed with craftsmen. Then the material costs are simply billed via the incoming invoice from the craftsmen.

The estimate is important

The estimate is important

As an owner, you first have to determine exactly what should be renovated before taking out a loan for renovation costs. A new terrace or work on the foundation are much more expensive than if only a single room is to be renovated, which is why no loan should be taken out without prior planning. Once you have a detailed picture of the scope of the measures, you can then probe the credit market for a loan for renovation costs.

This point is just as important as the previous planning, because only as a borrower can you be sure to get the cheapest possible loan, which does not make the renovation costs already incurred even more expensive. Suitable loans can be found on loan calculators, whereby it should be ensured that the right calculator is used for the respective loan. A home loan requires a different calculator than when a simple installment loan is taken out, which is why the scope and the total costs of the renovation are decisive here too.

The loan for the renovation costs can also be taken out with a building society, which grants loans especially for a renovation up to an amount of 30,000 USD. The borrower can find out whether this loan is cheaper than an installment loan through a direct bank by comparing the costs and conditions of both banks separately. As always, creditworthiness is also a decisive factor, because ultimately loans are only granted to people with the appropriate creditworthiness.

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Loan without contribution: how much can I have?

The contribution is not a mandatory condition to have access to funding. It is possible to borrow money without necessarily having a personal contribution. In the context of a mortgage or consumer loan, it is the debt ratio that will define the maximum amount that it is possible to obtain.

Loan without contribution: how much can I have?

Loan without contribution: how much can I have?

The borrower cannot exceed 33% of his monthly income in loan repayment. So let’s take an example if the borrower has an income of $ 1,500 and he has no outstanding credit. He can reimburse up to $ 495 monthly for a loan.

The loan without contribution is not conditioned or limited, it is only the capacities of the borrower who will fix the maximum amount that can be borrowed.

In addition, we find it under the name of the 110% real estate loan, that is to say, that the sum which is used as usual contribution to finance the various expenses (file, guarantee, notary, real estate agency …) is added to the amount of the price of the property, we, therefore, speak of 110% for 100% of the price of the property and 10% of costs, all in a single monthly payment for the borrower.

How do I calculate how much I can borrow?

How do I calculate how much I can borrow?

At first glance, it is not easy to know exactly how much one can borrow within the framework of a mortgage, because obviously many data enter into account but it is possible to calculate, with his means and in a way basic the amount of the loan that can be taken out.

To know how much I can borrow, I must first know the amount of my income. Second, I need to know my debt ratio if I have outstanding loans, this allows me to know the amount that can be granted to a monthly payment. Finally, I need to have the credit amount and possibly the desired repayment tenure.

Calculation of the debt ratio: CHARGES / INCOME X 100. It is good to know that all these elements are automatically calculated during a loan simulation online or through the financial advisor who is responsible for the financing study.

Monthly payment calculation

Amount desired:
Interest rate :
Repayment period (year):

Borrow without personal contribution: the rate

Borrow without personal contribution: the rate

The rate is very important in the context of financing without prior savings because it will also determine the amount that can be borrowed. The lower the rate, as at present, the more the borrower will be able to borrow and therefore enlarge his initial envelope. For a home loan, a difference of a few tenths in the rate can increase the maximum amount that can be granted by a few thousand.

In addition to this, if the borrower can avail of the zero-rate loan, the maximum amount borrowed is even greater. To know precisely the total amount you can get, you just have to make a loan simulation without contribution to the project concerned: real estate, consumption, auto.

It’s free and without obligation. Important to know: the absence of contribution does not mean that we can not compare and negotiate the offers of housing finance, so we take the opportunity to put them in competition and negotiate the best conditions.

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Home loan with 10,000 dollars of contribution

 

You have a real estate purchase project. Apartment or house, you already have dreams in your head. However, you must have an agreement from the bank for a loan. How to maximize your chances?

What are the banking criteria for obtaining a mortgage?

What are the banking criteria for obtaining a mortgage?

New, old house, to renovate, all real estate needs; if you don’t have enough equity; to take out a mortgage. To do this, you must seek the help of a bank. The latter will advance the capital to you. You will be required to repay monthly payments, for several years (sometimes two decades or more, depending on the bank), with interest. Interest is the counterpart of this financial loan.

The bank wants to be reimbursed. For this, you must prove that you are creditworthy, that is to say that you have a stable financial situation. A fixed contract, like a permanent contract, even at the minimum wage is a good first point. This proves a regularity in household income.

How To Know If You Can Get A Home Loan

How To Know If You Can Get A Home Loan

Since the advent of the Internet, banks have evolved to offer paperless services to their customers. It is thus possible, using a simulator, to know whether one can take out a bank loan. For this, you must enter your income, fixed costs and indicate if you already have credits in progress. You can quickly find out how much you can have and if it’s enough to buy the property you’ve spotted.

Having a contribution is also appreciated, if not required, by certain banking establishments. A contribution of 10,000 dollars provides that you are able to save and that the project is close to your heart. Even if 10,000 dollars is perhaps a minimal contribution, it gives additional proof to the bank which needs strong insurance. It is to be considered, of course, with the type of property you wish to acquire and according to its sale price.

Go through a broker for your mortgage:

Go through a broker for your mortgage:

To optimize his chances, it is possible to go through a mortgage broker. Even if he will ask you for the same supporting documents as a simulator, you will have in front of you a privileged interlocutor to explain your request. The first advice he will give you will certainly be to make a comparison. Your bank is not the only one that offers loans to buy property. Is it the one that offers the most advantageous offer, in terms of rate, duration or loan conditions?

Going through a broker lets you know quickly. Experienced in this type of research, he can, by evaluating your financial, personal situation and your request, tell you which bank seems appropriate to him, to file a loan request. It can also help you develop a coherent financing plan that will eventually convince the banker to give you your loan. Finally, if the situation demands it, he can use his negotiating skills to come up with an even more attractive proposition.

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