How building loans work

Do you dream of building your own house? Okay, to build the house all by yourself maybe is to get water over your head. But to have to decide how it should look and what a feeling it must be filled in when you walk through the door, it’s not impossible. However, one condition is that you know how to finance the project. If you are going to expand, do a major renovation or build a brand new house, an alternative might be to take out a building loan. Here we go through how it actually works when you are going to realize your house dreams with the help of building loans.

 

What is a building loan ?

What is a building loan ?

A building loan does not really work like a regular loan, but is a type of credit used to pay for the construction. A more accurate word is therefore building credit, and the banks use both terms when describing the service. The financing solution means that the borrower receives credit for being able to pay the bills relating to the construction. When the building is completed, the used credit is converted to a mortgage. The solution is used when you are not sure what the project will cost in the end and therefore do not want to take out a loan on a fixed amount.

 

Careful preparation

Careful preparation

When you take out a building loan, the bank lends money based on the value the house is expected to get. This poses a great risk to the bank, and therefore it is in their interest that the construction proceeds as planned. Therefore, in order for the loan to be granted, they require detailed information about the project before you get started. You must therefore know what you want and who you want to work with before submitting your application.

A good start can be to contact different contractors and construction companies and compare their offers. Ask companies for references so you can find out what previous customers have for their experiences. It means a little extra work, but it’s worth it when you start such a large and comprehensive project. After all, this is your house! But do not sign any contracts until you have met the bank and obtained their approval. Also, consider comparing loan offers from different banks to get the lowest interest rates and the best terms.

 

Your application

building loan

When applying for a building loan, the bank will want as much information as possible about the planned building. This is to ensure that the construction plan holds and that the calculations are accurate.

Your application should therefore contain the following:

  • Drawings of the construction
  • The total cost of the project
  • Possible contracts
  • Information on production costs

When all documents have been approved, a preliminary evaluation of the building is done, then the bank decides how much they want to lend to you. You are not allowed to borrow the entire cost, but you must be responsible for a cash contribution of about 20%. If everything looks fine, you get a loan promise and a loan agreement is signed. Then you get access to the building loan.

 

This is how the building loan is used

This is how the building loan is used

The building loan may only be used to pay the costs associated with the construction. Therefore, remember to save all receipts for different expenses and purchases in a folder when these are to be reviewed by the bank. During the construction process you will have close contact as they want to make sure that the value of the house increases as it should.

 

What happens next?

building loans

When the construction is complete, a final inspection must be carried out. If the work is approved, a final notice that the building has been completed must be sent to the municipality. It will also be sent to the bank, which will carry out a final evaluation of the building. Subsequently, the used credit can be converted into a regular mortgage. Be sure to compare loan offers from multiple lenders when you are reposting your building loan. Just because you chose a particular bank for the building loan, you are not bound to use it in the future. Other lenders may have significantly better deals.

How Peer to Peer Loans Work

Have you ever thought about how you can use your property to make some extra money? Maybe you have sold that bike that has been in the basement for far too long or rented out the place while you were on vacation. If you have, then you have used the same business model that some of the world’s largest companies use. The model is called peer to peer, or P2P, and now it has entered the loan market. Here’s everything you need to know about peer to peer loans.

 

What is the P2P model?

loan

P2P is a business model that involves private individuals sharing personal property for compensation. You have probably both encountered and used P2P without being aware of it – it occurs in a number of different industries. Some examples of well-known companies are Blocket, AirBnB and Uber.

 

What are P2P loans?

What are P2P loans?

A P2P loan is a form of loan that means that individuals borrow from each other instead of borrowing from companies. P2P loans are also called peer to peer loans, person to person loans, crowdlending and marketplace lending. The loan form has emerged as an alternative to traditional loans so that the parties meet on more equal terms. When you borrow from a bank, you may have to pay different fees and fulfill specific conditions for the bank to handle the loan. The purpose of P2P loans, when you borrow from another private individual, is to avoid this.

 

How does P2P loan work for me who wants to borrow?

How does P2P loan work for me who wants to borrow?

You apply for P2P loans through various brokerage companies online. The brokerage company takes a credit report on you and determines the interest you will pay for the loan. The company then connects you with one or more investors who are willing to lend money. What determines how quickly you get the money is how long it takes for the company to find investors. Sometimes it can take several weeks if it is about larger sums, other times it can go much faster. Something that is good to know is that it can be difficult to get a P2P loan granted if you have a debt with Kronofogden. That’s because the brokerage company is trying to make sure you can pay back because the P2P loan is a unsecured loan.

 

Why should I invest in P2P loans?

Why should I invest in P2P loans?

There are many benefits to investing in P2P loans. It is seen as a safer alternative than equities and provides a monthly return that contributes to a return on interest rate effect. As a lender, you decide for yourself how much you want to invest, how much risk you want to take and when you want to withdraw. You can invest in private loans with low interest rates or high interest credits – hopefully the return will be thereafter. But as with all investments, there is a certain risk that you will not get back the money you have invested. Be sure to place your money with multiple borrowers to spread the risk.

Savings bank president in the twilight – Cheap loans in the credit comparison

What makes the case so spicy?

What makes the case so spicy?

The background for the indictment is the fact that Horst Fahrenschon filed his tax returns for the years 2012 to 2014 only in 2016. Every taxpayer in America knows that this time limit interpretation is quite generous. If the tax declaration was made in the past, the 31st of May of the following year was the deadline. If a tax consultant was appointed to do so, an extension of the deadline was possible, but not for four years.

Horst Fahrenschon should actually know the legal regulations. In the years 2008 to 2011, the Bavarian State Finance Minister, the CSU member, was supreme head of the Bavarian tax authorities. Fahrenschon denies a deliberate offense and assures that the open taxes have been paid in the meantime. The district court sees in the multi-year delay, however, a deliberate tax evasion.

Even more turbulence 

Even more turbulence 

The postponed election of the president is not the only adversity for the federation. At the beginning of November, Fahrenschon admitted to the Bank that the attack on Paypalsa had failed miserably with the American payment system Giropay: “” Yes, that’s right. Paiddirect is not a success so far, we have to pay bitter apprenticeship. “

The savings banks and the participating banks, including Butch Bank and Comerecebank, had invested over 100 million usd in the project.

Since 2015 on the market, Paiddirect could never prevail. The number of users was below the number of employees working for the savings banks. Even in his own home, there was doubt. Of the top 100 online shops in America in December 2016, just nine companies accepted the payment system of American banks and savings banks.

Paypalsa’s 19 million users face just 1.5 million consumers in 2017, using Paiddirect. After all, the number has doubled. In November 2016, there were still 750 thousand.

Institutes involved do not want to stomp the project

Institutes involved do not want to stomp the project

However, the institutes involved do not want to stomp the project. Another 300 million usd are needed to achieve a complete restructuring. The American sparkass- und Giroverband would take over 100 million of these, provided that the other partners would contribute the remaining 200 million usd. Regardless of which key figures you compare at Paypalsa and Paiddirect, it looks as if the American banking industry has a gigantic depreciation project traded.

Paypalsa’s 19 million users face just 1.5 million consumers in 2017, using Paiddirect. After all, the number has doubled. In November 2016, there were still 750 thousand.

However, the institutes involved do not want to stomp the project. Another 300 million usd are needed to achieve a complete restructuring. The American sparkass- would take over 100 million of these, provided that the other partners would contribute the remaining 200 million usd. Regardless of which key figures you compare at Paypalsa and Paiddirect, it looks as if the American banking industry has a gigantic depreciation project traded.

Anyone who accepts Paiddirect as a merchant also accepts Paypalsa in any case. Conversely, this is far from the case. Why should a consumer engage with a second payment service provider? Acceptance gaps, such as credit cards, do not exist.

The question remains what the future looks like. Threatened with a fine or imprisonment in the case of a conviction. However, there is a reassurance for him. The maximum term of ten years for the crime of tax evasion has not even been imposed by the courts on millions.