In your own four walls with a real estate loan

An average earner cannot realize his or her own four walls by saving alone; as a rule, a high real estate loan is required. The choice of a home loan needs to be considered carefully, loans of this type typically run for decades, and even slight interest rate differentials cost thousands of dollars. Real estate loans are usually granted against the entry of a land charge. From a legal point of view, the house belongs to the full repayment of the bank.

If there are no repayment installments, the bank can access it and turn the property into money. This is the big risk with real estate loans, life does not go according to plan, unemployment, illness or separation from the partner, can overturn the financing plan and cost the house. When calculating the maximum affordable monthly repayment load, every builder should therefore plan a certain buffer.

Peculiarity of the real estate loan

Peculiarity of the real estate loan

Real estate loans naturally offer a high credit line, the volume for single-family homes is usually in the lower to mid six-figure range. Most of the time, the loan represents only part of the total real estate financing, the combination with equity, building society contracts or life insurance is the rule. Home loans are often cheaper than ordinary installment loans, the interest advantage is due to the strong credit protection through the entry in the land register.

Use is limited to building or buying property. Real estate loans typically run for 20 or 30 years, in the meantime general building rates can rise or fall significantly. That is why no bank is prepared to offer a constant guaranteed interest rate. Interest-rate fixing periods of ten years are usual, after which the loan interest is renegotiated.

What should you watch out for in real estate loans?

What should you watch out for in real estate loans?

Every borrower is well advised to bring as much equity as possible into his real estate project, after all, he has to pay dearly for every dollar borrowed. The own contribution should at least be sufficient to cover the incidental costs. They make up approximately 10% of the property value and consist, for example, of fees for brokers, notaries and land charges. An extremely low interest rate phase undoubtedly marks the best time to take out a real estate loan.

The low interest rate is to be secured by the longest possible fixed interest period. Interest rate fixation periods of between 5 and 30 years are possible, whereby the banks calculate a risk surcharge on particularly long interest rate guarantees. Here you should not be afraid to use the calculator yourself to determine the cheapest mix of effective interest and fixed interest rates.

Credit during separation year

 

If you want to apply for a loan during the separation year, you will usually encounter rejection at the house bank. So if you orientate yourself on the free financial market and look at the offers of private donors or foreign banks, you can get some advantages and rule out a rejection with poor credit rating.

Compare offers on credit during the separation year

Compare offers on credit during the separation year

The terms of each lender vary. Even if a favorable interest rate can be recognized at first glance, this does not alone determine the attractiveness of an offer. For this reason, you should use a free comparison on the Internet as a basis and inform yourself about the offers for credit during the separation year. No borrower is immune to changes in their financial situation.

In order to rule out repayment problems and to be able to change the monthly installments or defer payments, the general conditions should be flexible. A wrong decision in the loan can go hand in hand with high additional costs and even lead to a debt trap. If you choose a loan that can be changed in the term, you can adapt it to your personal situation at any time and therefore avoid falling behind with the repayment and thus giving the lender the green light for disposing of the collateral.

Informal application and fast processing

Informal application and fast processing

You can apply for a loan during the separation year directly online on the free financial market. To do this, fill in the form provided by the lender and enter the existing collateral there. These must be in an appealing amount to the loan amount and thus present a real and acceptable protection.

The form can be accessed directly from the comparison by clicking on the selected lender. The amount is usually approved in less than 24 hours and requires an immediate transfer. A loan on the free financial market is therefore also suitable for consumers who do not have to wait and who urgently need money.