Whether you want to buy your first home or just want to build a home of your dreams, knowing all the latest about different Hausfinanzierung (House Financing) options can help you avoid any future headaches.
Most probably, you’ll have to get construction loan as well as permanent mortgage for fulfilling your house finance obligations. Whatever you need, it’s advisable that you first analyze your current financial position. To begin with, you can ask for an explanation from different lenders about their loan programs as well as the qualification requirements. It is also good to get your credit report ready at this point of time and get any blemishes or errors wiped away so that you can be able to get best possible terms and rate for the mortgage.
Basically, you can get either a one-time closing loan or construction-only loan for financing your home. It’s good to take time and find out how each of these House Financing (Hausfinanzierung) options can benefit you.
The one-time closing loan usually offers a construction loan for a short term, which can be turned into long-term mortgage when you have completed your home’s construction. Usually, construction loan is for 6-12 months. In such a loan, the closing costs are reduced as separate loans are combined into a single convenient closing. However, you don’t have the chance of shopping around to get best rate when your construction loan turns into mortgage.
Most of the builders cannot wait for reimbursement of labor, equipment and materials until your home’s construction are completed. So, construction loans are available as a practical House Financing option for borrowers to make payments through different stages of home construction. Such loans are usually short-term loans which need closing costs as well. For such loans, one closing is needed when the construction begins and another closing is needed for refinancing your construction loan to become permanent mortgage.
Visit SZ Immo and do a House Financing Comparison (Hausfinanzierung Vergleich) so that you can secure the best loan available to you.