Today it is difficult to find a person who does not want to own a house. But in order to implement this, you need to have a fairly large amount of money, and this becomes a problem for the majority. But do not get upset about it, you can do everything and get your dream. For financial assistance, you can apply to almost any bank and get a loan to build a private house. You just have to correctly determine the amount and terms of the loan. In order to receive a loan, you bring to the bank the documents that the credit agent will tell you about. Among them, a passport is required, a certificate of your income and guarantors, if necessary, collateral, etc.
All banks when making contracts are such that for the entire period of construction of the house, the borrower should pay only interest on the amount received. And the amount of the main debt is transferred to the period when the house will be fully built and put into use. This moment is the receipt of a certificate of accommodation of the cottage. So do not be surprised that when you come to the bank, you see floating interest rates on the loan. They can be either reduced in a certain period or vice versa.
Initially, before you get a loan for building a cottage, you bring a pre-compiled home project. Along with this, the amount that will be required for this case is also calculated. These documents together with those about which we wrote above, you provide to the bank. There they are fully studied, reviewed, and a decision is made whether to grant a loan or to refuse. Once a positive decision is made, the bank will provide you with a repayment schedule, taking into account all stages of the construction of the house. And, based on this schedule, interest on the loan will be calculated.
In total, banks provide two options for a loan for the construction of a residential house:
- Loan in full
- Partial credit for construction phases
When you decide to open a credit line, then the bank constantly needs to make inquiries. And every time you receive money, un commission is paid, which is approximately 0.2%.
If you decide to use such a loan, when the money is completely transferred to your account, but in the process of construction they have you left, and the house is not yet built, then for saving you can put them into the account at a percentage.
Just before you take out a loan, you should understand that it’s only 70-80% of the value of the house. Therefore, the rest of the money you already have to be on hand.
When you repay the loan, you can also use several options. The first is when, you pay the entire amount of the loan in equal parts, no matter at what stage the construction is located. And the second, when you pay first interest, and then, as mentioned above, the rest.
Loan terms vary from 15 to 30 years. Therefore, the bank needs a guarantee and it can demand to arrange insurance. You will need to insure the property that you already have and that goes as collateral, yourself from accidents that occur, and insurance of the works themselves for the entire construction period.
Do not hurry to make out a loan in the first bank, find out all the possible offers and choose the most optimal one.