Not everyone has their own funds to purchase real estate. Nowadays, a loan for building a house is available. Often financial institutions provide such loans secured by a plot of land or other property. They need this to minimize credit risk.
What does the lender pay attention to?
Banks have a number of requirements for the acquired objects, which are: real estate under construction and land. Here they are:
- Real estate must be registered in the BTI, it must be recorded in the registration service as construction in progress. In this case, it is desirable that the house was already half built. Summed up communications necessary for a full-fledged stay will more likely place a lender. The land on which the property is built should not be rented. Until the construction is completed, all the necessary stages of the state commission are passed, the client will have to pay high interest.
- Another requirement of the lender when applying for a loan for the construction of a house is presented to the land. It should be privately owned, it is important to equip it with the necessary communications, brought directly to it. Banks often make decisions based on where the land is located.
A loan to build a house is issued by few banks. However, in recent years, this segment has begun to be in demand. The suburban real estate market is quite popular with buyers. And demand, in turn, contributes to the birth of supply. Before using such a loan, you need to weigh every step. The amount of the first payment is usually higher than in a traditional mortgage, it is at least 30%. It is important to immediately learn about the fees. A loan for building a house can be issued for different periods (from 3 to 30 years). The interest rate also depends on this, as well as on the size of the loan.
What is necessary?
List of documents required to take a loan for building a house:
- Information about the borrower's income, confirming its solvency.
- Papers on a piece of land.
- Permission to build an object.
- House project.
- Other papers that are necessary for a particular financial institution to issue a loan.
Example
Different banks offer their loans for building a house. Sberbank, for example, is known for an interesting program, according to which it gives people loans to buy a house. As collateral, he considers the loaned or residential premises. There are two options:
- The borrower draws up a loan for the construction of a private house, which will be a guarantee in this transaction.
- The client takes money on the security of another property that was built earlier and is in his ownership. The purpose of this loan is the construction of a house (residential).
The Sberbank program under consideration is called “Housing Construction”, it differs from the “Housing Under Construction” program in higher percentages. The program provides loans to build a house for permanent residence. So that the bank could decide whether to give a loan or not, it will ask you to provide documents for the premises, which became a guarantee. He will also require paper for purchased housing. Interest will depend on the loan term, amount of the first payment, loan currency. A big plus if the client is given a salary at Sberbank.
Try to choose the right bank, be attentive to each item of the loan agreement in order to approach the issue of mortgages for building a house with all responsibility .