Is it possible to take out a loan to build a house?

Not everyone has their own money to buy real estate. Nowadays, a loan is available for building a house. Often, financial institutions provide such loans on security of a piece of land or other property. It is necessary for them to minimize credit risk.

What does the creditor pay attention to?

Banks make a number of requirements for the acquired objects, which are: a real estate under construction and a plot of land. Here they are:

• The real estate needs to be registered in the BTI, it should be recorded in the registration service as an unfinished construction. It is desirable that the house was already half built. The communicated communications necessary for a high-grade residing, will more allocate the creditor. The land on which real estate is built should not be rented. While the construction is not completed, all the necessary steps of the state commission will not pass, the client will have to pay high interest.
• Another requirement of the creditor when registering a loan for the construction of a house is presented to a plot of land. He should be privately owned, it is important to equip him with the necessary communications, brought directly to him. Banks often make decisions based on where the land is located.

A loan for building a house is issued by a few banks. However, in recent years, this segment is beginning to be in demand. The suburban real estate market is quite popular among buyers. And the demand, in turn, contributes to the birth of the offer. Before using such a loan, we must weigh each step. The amount of the first payment is usually higher than in a traditional mortgage, it is at least 30%. It is important to learn about commissions right away. A loan for construction of a house can be issued for different periods (from 3 to 30 years). From this, as well as the size of the loan, depends on the interest rate.

What is necessary?

List of documents necessary to take out a loan for the construction of a house:

• Inquiries about the borrower's income, confirming his solvency.
• Papers on the plot of land.
• Permission for the construction of the facility.
• House project.
• Other securities that are required by a particular financial and credit organization for issuing a loan.

Example

Different banks offer their loans for building a house. Sberbank, for example, is known for an interesting program, according to which he issues loans to people to buy a house. As collateral, he considers the loaned or residential premises. There are two options:

1. The borrower draws up a loan for the construction of a private house, which will be pledged in this transaction.
2. The client takes funds against the security of other real estate, which was built earlier and is in his ownership. The purpose of this loan is to build a house (residential).

The program of Sberbank is called "Construction of a residential house", it differs from the program "Housing under construction" with higher interest. The program provides a loan to build a house for permanent residence. In order for the bank to decide whether to give a loan or not, it will ask for documents to be submitted to the premises, which became a pledge. He will also demand paper for the housing he buys. The interest will depend on the loan term, the amount of the first payment, the loan currency. A big plus, if the client is given a salary in the Savings Bank.

Try to choose the right bank, be attentive to each point of the loan agreement, so as to take responsibility for the mortgage on the construction of the house with all responsibility .