When winter rages outside the windows, the vision of spending evenings in your own home by the fireplace seems to be a good motivator to think about its construction. The more so that spring will come quickly, and that’s when construction works start. However, before you start building real estate, you need to deal with a number of formalities.
The first step is, of course, choosing the right plot. The right place, dimensions, access, view, neighbors – these and many other factors should be taken into account in order to be satisfied with their choice. It is better not to hurry and think carefully.
How do you start building and crediting your home?
The next stage is choosing the right construction project. There are many of them, so you will definitely find something interesting. In addition, the project can always be modified (of course you need to obtain permission) or have the project created from scratch according to your own guidelines.
When we have the project, it is time to get building permission in the office. To this end, an appropriate application must be submitted together with the required documents – all information is obtained at the office. It is important that building permission is obtained for a specific project, so its selection in the office is necessary. It takes up to 65 days to issue this document. The permit will become final when the next 14 days have passed. Then we can go to the office, where we will receive a stamp of last resort.
After completing the formalities, you can start the loan process. Applications are best submitted to several banks. Earlier, however, it’s best to compare offers and choose the best one. Unfortunately, this requires a lot of work, because mortgage loans differ in many parameters (eg interest rate, commission, calculation of creditworthiness, additional products and insurance required). In selecting the best offer, however, there is a financial advisor who will also guide you through the entire property loan process.
When does the loan for a built house start paying back?
Repayment of loan installments begins after the first installment of the loan has been paid out. However, during construction they are lower than the target level, because at that time we only pay interest on the debt. The repayment of the full principal and interest installments begins only after the entire loan amount has been paid out.
There is often a question of whether you can borrow a plot and build a house with one loan. Of course, yes, but not every bank gives such a possibility. At the same time, before buying a plot, you should already have a building project selected. The bank wants to know what we intend to build and what the costs will be. Then, together with the application, we submit documents as for standard construction, but we do not have a construction log and permit. They will be delivered at a later stage, after the purchase of the plot. They will also become the basis for launching tranches for the construction of a house.
It is worth noting that after the first tranche of the loan has been released, the bank will be entered in section IV of the Land and Mortgage Register. After completing it, you should provide the bank with a copy of the Land and Mortgage Register with a valid entry, which will reduce the margin on termination of bridging insurance.
Important tips to remember
The credit process is not complicated, but we must pay attention to several important elements that will allow us to save time, money and nerves:
- A set of necessary documents will ensure quick analysis of the application and efficient issuing of a credit decision
- A well-filled bank cost estimate is necessary in the correct estimation of the costs of subsequent stages with the quick release of loan tranches
- Payment method for subsequent tranches – invoices, bank inspection
- Time to declare the building for use, ie how long our construction can last
Of course, it is worth cooperating in this regard with a specialist in mortgage loans, who will help us at every stage and help us avoid unnecessary or d. And then all we have to do is relax in the comfort of our own home.