What you need to know about home construction loans

Traditionally, the bank comes for registrationmortgage lending for the purchase of an apartment, this phenomenon is now well known and very popular. The cost of housing does not fall, on the contrary, it constantly rises to sky-high heights. Loans for the construction of the house are not issued as often, because the service is not as massive as loans to buy an apartment. The details of the loan for the construction of the house are different from the apartment loan, we will examine them in more detail.

Usually loans for the construction of the house make outpeople who already own their own apartment or other type of liquid real estate. Banks are very willing to meet you, if you have such a pledge. In this case, a loan for the construction of a residential house is issued in the amount of up to 70% of the value of your property, which you provide as collateral. Interest rates will be reduced for construction, it is more profitable than buying a finished house.

Conditions in all banks are approximately the same. Loans for the construction of the house are issued for up to 30 years. To get a loan, you will need to collect the following package of documents, which is suitable for any bank:

• Identity documents;
• confirmation of the client's solvency (a copy of the work book and / or a certificate in the form of 2-NDFL);
• permission for construction work;
• certificate of ownership or lease of land;
• the project of the future house (including the approximate estimate).

If necessary, you will be asked to providemore complete information on certain items, for example insurance policy, PTA, certificate of state registration of real estate, etc. Each bank has certain conditions for all customers.

In which bank are the more favorable conditions for a loanfor building a house? Sberbank provides a loyal loan program for customers who have a salary or pension account in it. Interest rates will be significantly reduced, which makes many people happy to take credit there. In the end, Sberbank - perhaps the most famous organization of its kind in our country, has long distinguished itself by its reliability and good conditions for all customers.

In other banks also receive loans forThe construction of a house is simpler for those who have an account or a loan without delay. Everyone has different stocks, loan conditions vary depending on holidays, seasons and other criteria. To get a loan on the most favorable terms, do not be lazy and study the proposals of all large and reliable banks of the country. Your chances will be much higher when you show the collateral and the initial payment of at least 30%.

Note that banks usually issue loans for the construction of houses in areas ranging from 150 to 400 m². Of course, you can negotiate terms and, perhaps, come to a compromise to build a house on a smaller or larger area.

If you decide to repay the loan ahead of time, youIt is necessary to find out whether the bank has the opportunity to provide this without additional commissions. Some organizations can take a commission for early repayment in the first six months, a year or two.

Study the contract carefully and choose the most convenient conditions for yourself.