Own home is what many people dream of. However, the cost of building your own home is really high, so hardly anyone can afford to build it for cash. Unfortunately, most of us have to take a mortgage that will be paid back for many years. One should know that credit can become a much bigger expense for us. Therefore, one should take into account that the interest rate on the loan may increase!
How high can the interest rate be?
You never really know how much it will rise to. The mortgage rate is usually very low, which is why so many people decide to take it. If the loan is taken for 20 or even 30 years, the monthly installment may be around 800-1000 PLN. It all depends on how much money we took to build our dream home. Today, mortgage rates are around 3-6%. However, it may increase over time. You have to take this into account when determining the amount of loan installments. Otherwise, we may not have the money to cover the loan installments after the interest rate increases .
How long does it take to receive money?
It really depends on how much credit you want to take and for how long. The bank must carefully check the client who wants to get into debt for almost half of his life. If we prepare a set of documents that are required by the bank, we can count on the fact that within one to three months the money will be in our bank account.
It is necessary to remember, however, that the bank will not pay the whole amount immediately. We will get money in tranches, which we will have to spend on the things we have given in the bank. After documenting the construction works, we will be able to count on the next tranche of money. You also have to fit in the allotted time, which is also very important.
Who can get a mortgage?
Anyone with creditworthiness and a property that can pledge have the option to take out a mortgage. You must have a job, which is a solid income that will allow you to pay installments systematically and regularly.
If in the past we had problems paying back the loan, even for a TV set or a mobile phone, today we may have difficulties obtaining a mortgage, but also any other. Even if earlier loans were small and installments were too, the lack of timely repayments was certainly noted in banks and institutions dealing with loans and protection against irresponsible persons who do not pay their liabilities. All that remains for us is to write letters in which we will refer and ask you to delete our data from the database, because the loan has already been repaid. Usually, all problems with repayment of credit obligations disappear from this type of base after about five years.
Taking a loan is preceded by a check of the applicant’s creditworthiness. The installment cannot be more than less than 50% of our salary. For this reason, lonely people usually do not have the creditworthiness to take a mortgage for building a house.
It is much easier to get such a loan when there are more applicants and they have no credit obligations. Then the sum of money in a month is much higher so you can pay larger installments and your creditworthiness increases.
What is the cost of credit commission?
We should know that no one will give us a loan without a commission. Interest is not the only fee we have to pay. In addition, we are doomed to a commission for granting a loan. Usually it is not very high, although there are loan offers that require a commission of 3-4%. In this situation, the cost of our loan will increase significantly. It is therefore worth looking for commission-free offers, which can also be found from time to time, although of course it is not as easy as it may seem to us!
In summary, if we really want to build a house, then a mortgage is almost necessary. It is good to familiarize yourself with the various types of bank offers, because the commission for granting the loan, as well as its interest rate may be different in different banks. The lower the commission and interest rate, the less we will have to give the bank extra money. A loan for a dozen or even several dozen years is a big challenge and responsibility. If someone decides to take it, he should think it over!