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Most important building loan tips

Find out the ten most common mistakes in a home loan. Do not make the mistakes in your building loan that others have made before you. To save you from nasty surprises, we give you the eight most important tips for your home loan here. With these building loan tips, your building loan application will be a success.

In your own interest, you should do the following beforehand so that the path to your bank or financial advisor for your building loan is successful.

Check your Credit Checker (credit report). Apply for your Credit Checker information at »Credit Checker.de. If there is debt collection or similar in the Credit Checker information, then the dream of real estate financing with a bank has come true (negative Credit Checker). Registrations of regularly paid loans are usually not a problem.

Use building loan tip special repayment?

Use building loan tip special repayment?

Inquire whether a special repayment is possible and in what periods you can repay your building loan. In general, you can only repay a limited amount of real estate financing with a bank at the end of every »fixed interest period. Ask about additional options for special repayments.

Example: every five years with 1, 2 or 5 percent. You should know that an intermediate repayment agreement usually results in a higher interest rate. This represents an additional service for the banks. Further information on repayment / special repayment

Building a loan tip the amount of the building loan?

Generally, banks finance 60 to 80 percent of the purchase price of your property. If you would like 100 or 110 percent (financing without equity), the bank will charge you higher interest. Your home loan will be more expensive. 100 percent financing is generally possible, but there are exceptions to this.

The decisive factor for the bank, in any case, is your »creditworthiness. The following applies here: the lower your equity, the higher the interest in your financing. See our current interest table in the section »Building loan interest.

Building loan tip on the commitment interest

Building loan tip on the commitment interest

Providing your approved loan is initially free. However, the period of free funding is particularly important. Generally, one to six months are common here.

Especially if you are building a new house or having it built, you should make sure that it is provided for as long as possible and free of charge or that the provision interest is as low as possible. This saves considerable costs in the beginning.

Building loan tip home promotion

Yes, there are a number of ways to get home support. The bank must apply for this in connection with your building loan. Banks do not always provide this service. With home support, you can finance up to 30 percent of your entire financing on more favorable terms.

With a home promotion, you save some 10,000 USD and at the same time increase your liquidity. Ask if your bank offers you this service. Unless? Stay away from this bench! Everything about government funding and homeownership funding.

Building loan tip loan. Compare interest rates correctly

Compare the terms and interest of your real estate financing. Important, compare the fixed interest rate with the corresponding »effective interest rate! This is the only way to make a realistic comparison of the conditions of your real estate financing. Only 1 percent difference in interest on a building loan of USD 100,000 will cost you around USD 20,000 to USD 30,000 more in interest over the entire term! How to correctly compare your »building loan interest?

Building loan tip more security without assignment clause

Building loan tip more security without assignment clause

Most loans or home loans are offered with an assignment clause. The assignment clause for loans, loans or »mortgages states that the bank is entitled to pass on your building loan to third parties without your consent (sale of loan agreements). This means that the bank can sell your loan agreement to investors at any time. That usually means the financial end. Insist on an assignment clause before concluding the contract! You are on the safe side!

Building loan tip: The smaller the more important!

Before you sign your home loan with a bank, be sure to read the entire contract carefully. Question carefully when things are incomprehensible or ambiguous. The small print is always disproportionate to the importance! We would be happy to assist you with your decision or any further questions you may have regarding your home financing.

Building loan Credit Checker entries

Building loan Credit Checker entries

In order to achieve the best possible credit rating, a »credit report without mistakes and criticism is very helpful. If your Credit Checker does not have negative Credit Checker entries, you can also save up to 3% on loan interest. The better their »creditworthiness, the cheaper their building interest. The Credit Checker entry has a direct impact on your credit rating. With negative Credit Checker entries, it will be difficult or almost impossible to get a building loan on reasonable terms.

NEGATIVE SHOE ENTRIES ARE:

  • court orders
  • Broken credit
  • Broken bills
  • Overdrawn accounts
  • enforcement orders
  • Big consumer loans that you still have to pay.

If you have one of these entries in your credit report, save yourself the trip to the bank. You will not find a bank that grants you a building loan in such a case. In contrast, there are also neutrals or too.

POSITIVE SHOE ENTRIES ARE:

  • Regularly paid loans in the past
  • Existing small loans up to approx. 5000 USD
  • high payment behavior etc

With such regular and neutral Credit Checker entries, there will be no problem with your building loan. Here, each bank has its own and very non-transparent rating system. More about creditworthiness

Use building loan tip forward loan

Do not only use a forward loan when refinancing construction loans. With a forward loan, you can secure affordable building rates for the future. This is usually possible up to 36 months in advance at no additional cost.

But be careful not all banks offer a forward loan for free over 36 months. Many banks only grant free forward loans between 6 and 12 months. With the right bank, a forward loan can save up to 1% in building interest.