When you want to take an important step like buying a house , it is good to properly inform yourself about the available options and the relative operating methods. So let’s see how to make the greatest of desires for the future. Let’s find out the two main solutions at your disposal .
The personal loan
Personal loans are a form of financing aimed at obtaining amounts that usually do not exceed € 70,000. There are 3 particular cases in which it is preferable to choose it in relation to a house: note
- Low price of the building. It is a not too frequent but possible case that allows a purchase at advantageous conditions. It happens in small towns, with dated buildings. In this particular case, a loan is sufficient and can be for you.
- A sum already available. This is the situation that occurs when the buyer already has an initial sum and therefore only needs to cover the other part of the investment for the purchase of the house. A sum therefore, not conspicuous.
- Restructuring. The home loan is also perfectly suited to the needs of those who want to renovate the house. It is a practical and fast method.
The loan can finance the entire expenditure that needs to be addressed, even without advance payments. It is a convenient mode especially for those who can not provide many guarantees. To those atypical workers, for example, who intend to think about their own future, also trying to break down the times.
However, even in the event of low amounts, it is not said that the loan is in any case preferable to the loan. It is always necessary to compare offers. The mortgage can have a duration of up to 30 years and therefore has a lower rate. But it is necessary to evaluate well, because in some cases it could be cheaper than the loan, as it is amortizable over 10 years on average.
It is governed by Article 1813 of the Civil Code and is the main loan contract made by banks. The real estate mortgage is the solution that allows you to buy a real estate, if the situations listed above do not occur and for which it is preferable to opt for the personal loan. In general, a mortgage is required to buy, build or renovate your home, when the amount you need exceeds the amount granted by a loan.
The practice remains the same: ask for an estimate and carefully evaluate the part related to the interests, namely the TAN and the APR . Remembering that:
- The TAN is the nominal annual rate, calculated by comparing the amount of the installment interest due to the capital loaned;
- The APR is the annual percentage rate of charge that includes all the charges on the loan (such as the costs of preliminary investigation, mortgage or collection).
Take care also to evaluate the rate of financing. In the case of loans , the installment will remain fixed for the entire duration of the loan. Generally you have time up to a maximum of 10 years to pay off your debt. Furthermore, home loans have a limit on the amount requested.