Mortgage Loan for Finishing Real Estate

 

A mortgage is often identified only with a loan for the purchase of real estate: a house, flat or plot. Few people know that a mortgage can also be granted for finishing or renovating a property. Thanks to this, potential interested parties do not have to postpone decisions for many years because of the costs that should be incurred when realizing their dreams of changing the interior of their home. They do not have to use half measures or drag on indefinitely, engaging each set aside the proverbial dollar. Thanks to its features, the mortgage allows for relatively quick obtaining of cheap and long-term financing to meet your needs.

What property can be a collateral?

What property can be a collateral?

A renovation loan may be a standard mortgage secured by an entry in favor of the bank in the land and mortgage register. To think about such a solution, we must be the owner of a residential property with the land and mortgage register or having the option of establishing it. If the property is already mortgaged, funds for renovation can be obtained only at the home bank. Banks do not want to hedge on “second and subsequent places in the mortgage”.

In this situation, check the possibilities offered by the bank in which we have a loan to buy real estate. If for some reason it is not possible to take out an additional loan for renovation or finishing, we can get a refinancing loan + additional funds for renovation or finishing. I described the loan refinancing procedure in the following topic on the blog: How to properly refinance a mortgage.

The scope of work and materials can be credited

The scope of work and materials can be credited

Finishing mortgage is granted by banks for min. labor, changing the arrangement of rooms, painting, tiles, terracotta, floor, white assembly, changes in electrical, gas, hydraulic installations, replacement of windows but also for built-in wardrobes or kitchen furniture. Several banks have their restrictions in this matter. In several banks, min. Borrowers have the option of crediting built-in home appliances, eg fridge, dishwasher, oven, etc. Equipment that is not permanently attached to the property is not credited with a loan for renovation or finishing. The same applies to RTV, audio-video and computer equipment.

Maximum loan amount for renovation

Maximum loan amount for renovation

My clients often ask me what maximum amount can be obtained for finishing or renovating a property. This is a fairly problematic issue, because you cannot answer without submitting an application. On the one hand, some banks limit it by a percentage of the property value or transaction value. The most common range is 15% -25%. On the other hand, the projected value of the property must increase in direct proportion to the value of the work performed. In short, if we apply for renovation in the amount of USD 50,000 for an apartment worth USD 300,000, the bank will grant us a loan of USD 315,000 if the forecast value of the property is assessed at min. USD 350,000.

If the loan exceeds 25-30% of the property value, a problem may arise and some banks may not want to grant such a high loan. In such cases, I suggest creating an additional, detailed cost estimate that will explain why the relatively high loan amount is due. However, this does not mean that the exceedance will be accepted. Some banks strictly apply their rules and exceptions of this type are practically out of the question.

Many borrowers believe that by means of finishing it is a simple trick to obtain funds for any purpose or to consolidate current liabilities. To some extent it is probably possible (I do not encourage because it is illegal), but rather amounts of up to several thousand USD are at stake. Otherwise, the blown estimate can only mix up the entire process.

Debt restructuring loan online

Rescheduling installment loan comparison – January 2020

Rescheduling installment loan comparison - January 2020

Almost everyone has ever taken out a loan and quite a few consumers are even tied to several loans for which they pay different interest rates. The bottom line is that it all adds up, so it is advisable to carry out a comparison as to whether there is an online loan for the debt rescheduling.

Debt rescheduling can either convert an existing, expensive loan into a new, cheap loan, or several loans from different banks can be combined into one overall loan at one bank and at more convenient terms. This saves a lot of costs.

How does debt restructuring work and when is it worth it?

How does debt restructuring work and when is it worth it?

Example: You pay off a loan with a fixed interest rate of 8% pa, the remaining term is 6 years. The monthly burden increases due to changing living conditions and is almost no longer bearable. A debt rescheduling is advisable if there is a loan offer in which the bound interest rate is lower for a term of 6 months. Many “small” loans with high interest rates can also be combined to form a new loan, which also offers far better conditions through suitable offers and gives the borrower more breathing space. The debt rescheduling is worthwhile under favorable conditions for both high and low loan amounts, which is why an overdrafted overdraft account that is constantly in the red can be a case for the debt rescheduling. This can be achieved with the online loan for debt restructuring.

Conditions for rescheduling and any costs

Conditions for rescheduling and any costs

Getting out of a loan agreement is not that easy. If you want to terminate an existing loan contract prematurely, e.g. for a debt rescheduling, you are often faced with a problem if this is not explicitly stated as a possibility in the contract. The bank with which the credit agreement exists can meet the request for early loan repayment, but is not obliged to do so without further ado.

If she says yes, then the so-called prepayment penalty usually arises. This term defines the interest loss that the bank suffers from the premature termination of the contract. In the case of loans with a long remaining term and high loan interest, the borrower has a lot to do. These costs are then usually added to the loan for the debt rescheduling, which logically increases the loan amount.

Direct banks are waiting with favorable conditions for the debt rescheduling

Direct banks are waiting with favorable conditions for the debt rescheduling

Direct banks offer online loans for a wide variety of credit options. For example, there is a free-use installment loan that can be used as an online loan for debt restructuring. This online loan is available from numerous direct banks for amounts between USD 2,000 and USD 50,000, with terms between 12 and 96 months. With a fixed borrowing rate that is independent of creditworthiness and is far below the interest rate for the current loan, borrowers can save a lot of money and sleep through the night again. Because permanent money worries are incredibly burdensome and take away a lot of quality of life.

Conditions that the online debt rescheduling loan should contain

Conditions that the online debt rescheduling loan should contain

If you want to replace one or more old, current loans with a debt rescheduling, you should also pay attention to special conditions in the new loan offer:

  • Are special repayments possible to repay the loan early?
  • Is there a special right of termination?
  • Can the monthly rate be changed or adjusted in the event of changing living conditions?
  • Are rate breaks possible when things get really tight?

Compare the borrowing rate and the annual percentage rate, here too costs are noticeable.
The credit comparison helps you to find the best deal.

Here’s how to do it

Here

If you are considering debt rescheduling and have selected offers, first ask the banks with which there are ongoing loans whether they agree to the debt rescheduling / redemption and what the prepayment penalty is. Once you have done that, you can submit a loan application online to the preferred direct bank.

The application form also contains information on debt rescheduling loans from the relevant providers. Depending on the handling, the new bank will automatically replace the old loans by transferring the loan amount directly to the corresponding banks or you will receive the required amount and pay the creditor banks yourself.

Loans for foreigners without Polish citizenship – where to take?

 

In recent years, Poland has become increasingly attractive to foreigners looking for a new job and a new life. Ukrainians are the most numerous group, followed by Belarusians, Indians, Georgians and Vietnamese. Do they have a chance for a quick online loan in Poland in case of unforeseen problems? What requirements must they meet?

Foreigners are increasingly settling in Poland

Foreigners are increasingly settling in Poland

There are more and more foreigners in Poland – you can see it almost everywhere. Visitors from across the eastern border are particularly interested in staying in the country on the Vistula. According to the latest report of the Office for Foreigners in 2018, the number of people wanting to settle and legalize their stay in Poland increased by 47,000. Of course, many of them come illegally and on the basis of various documents or permits. That is why currently around 372,000 of them have valid documents that entitle them to stay legally. In 2018, the largest increase in residence permits concerned citizens:

  • Ukraine – 179 thousand people
  • Belarus – 20 thousand people
  • India – 8.8 thousand people
  • Georgia – 2.9 thousand people
  • Vietnam – 12.4 thousand people

Most permits came for temporary stay (up to a maximum of 3 years) – by 35.8 thousand, and permanent – by 9 thousand. However, the most common reason, and at the same time, the goal of living in Poland for most applicants is better earnings and a new job (73%). In addition, many people decide to stay in the country for family reasons (12%) or in connection with entering or continuing studies (10%). The above report did not include persons temporarily staying in Poland, including based on visas 1.

A loan in Poland for foreigners – for temporary problems. Is possible?

A loan in Poland for foreigners - for temporary problems. Is possible?

Along with the growing number of foreigners in Poland, the offer of financial services is also expanding. According to the PRNews report, which was prepared at the end of the fourth quarter of 2018, Polish banks served almost 700,000 foreigners, of which over 320,000 were Ukrainian citizens 3.

Many banking institutions are opening up to new arrivals. Banks introduce language versions on the hotline, have special sections with information in Ukrainian, or offer promotional terms for money transfers to our eastern neighbors. They even support mobile applications in Ukrainian and Russian. Interestingly, they also offer special offers to set up personal accounts and apply for a mortgage. From the point of view of foreigners, equally good news is the development of the domestic non-banking market.

Did you know that more and more lenders grant quick loans even to people without Polish citizenship? There are, however, some rules that clearly describe how a foreign payee takes a quick payday loan.

Loan payday loan for a foreigner – yes, but under certain conditions!

Loan payday loan for a foreigner - yes, but under certain conditions!

As a rule, loan companies verify client applications by following established rules. One of them is the applicant ‘s possession of Polish citizenship and permanent residence in Poland. On their part, this is mere pragmatism and the desire to avoid the risk of the borrower not returning money. Consumers who do not have a permanent residence in Poland – are not certain customers, because they can leave the country at any time. In addition, the lack of a Polish identity card, which is one of the most important factors verifying credibility, practically excludes a foreigner from taking any loan. In most cases you should also be between 18 and 65 years old (although each loan company has its own age limits in this respect).

However, Polish law does not discriminate against foreigners who care about financial support. There is no precise record saying that loans cannot be granted to persons without Polish citizenship. That is why lenders have a lot of freedom and they set their own criteria – regarding age, creditworthiness, debt or origin. There are only a few necessary requirements that every applicant, regardless of origin, must meet:

  • majority,
  • full capacity for civil law transactions,
  • living in Poland,
  • mobile phone, Polish bank account. Sometimes it is possible to loan for a GIRO check, for a phone call or even at the customer’s home,
  • creditworthiness. Although this is not always a necessary condition, because some loan companies do not examine the BIK, BIG or KRD databases.

When will a foreigner get a loan?

When will a foreigner get a loan?

Until recently, a problem with getting online payday loans for foreigners could be not having a Polish bank account. However, in the era of today’s banking offers, this problem has almost been eliminated. In fact, there are several reliable loan companies on the Polish market that grant loans to foreigners. For proper customer verification, you need:

  • current passport
  • legal residence and registration in Poland
  • legal employment and documented income
  • long-term resident status. The key parameter that gives the applicant the right to permanent residence in Poland and legal work. His tax residence is also located here,
  • temporary residence card when a foreigner does not yet have a permanent residence card,
  • PESEL number assigned. It is automatically assigned to every person who has permission to stay permanently in Poland. Others may submit an application for it to be sent to the commune office competent for the place of residence or, optionally, to the commune office competent for the employer’s seat. Interestingly, it is also given to other groups, e.g. refugees. However, the latter cannot apply for a loan,
  • creditworthiness – e.g. popular loans for Ukrainians are granted on the basis of cooperation between the Polish BIK and its Ukrainian counterparts: Ukrainian Bureau of Credit Histories (UBCH) and International Buerau of Credit Histories (IBCH). Thanks to this, financial institutions have access to the customer’s credit history even when he was living in his home country.

Who can become a long-term resident?

Who can become a long-term resident?

We already know that it is common practice for lenders to grant non-bank loans only to Polish citizens. Fortunately, they are increasingly abandoning this requirement and offer, for example, loans to Ukrainians, which are granted on the basis of long-term resident status. How can I get it?

A long-term resident is a person who is treated equally with a Polish citizen – in terms of education, employment, social assistance and social privileges. As a consequence, such a person cannot work in another country, even one who is in the EU. Therefore, to receive a resident card, in accordance with art. 211 of the Act on foreigners 4 :

  • stay legally in Poland for at least 5 years,
  • have regular income for at least 3 years,
  • have the right to housing in any form,
  • have a proven knowledge of Polish. For example, a school-leaving certificate in Poland or a university with Polish as a foreign language. It can also be an official confirmation of Polish language skills at least at level B1.

Which loan companies offer loans to foreigners?

Which loan companies offer loans to foreigners?

Which lenders offer online loans to foreigners?

  • Agree Bank – a loan with a surety. If the borrower does not have to be a Polish citizen, it is absolutely required from the guarantor,
  • Lite Lender Bank – the first loan from $ 100 to 5,000 $ with a maximum repayment period of 3 months,
  • MyCredit Lender – loans from 600 $ to 2300 $, loans – from 2 to 6 weeks,
  • Prida Cash Lender – from 100 to 5,000 $, loan period – from 10 to 30 days,
  • Instant Care Bank – has branches in Germany, Sweden, France and Denmark and there also offers the possibility of taking installment loans.

As a loan it is only for reliable customers!

A foreigner living in Poland for a long time has the opportunity to apply for both a mortgage and an online loan. In this respect, he is treated equally with a Polish citizen. However, this is not the case for people who have just come to the country or live in Poland and who profit from work abroad.

It is also possible for a foreigner to take out a loan with another person, e.g. a spouse with Polish citizenship. It is worth remembering, however, that having the status of a foreigner does not release you from the need to meet other criteria, e.g. having a Polish bank account, permanent employment or receiving regular income. Only if all specified conditions are met, the loan company is willing to provide funding.

Credit Self-employment online

Loan is for the private sector

Loan is for the private sector

As a self-employed person, you have to know every day how and where you get your salary. As a self-employed person you have to push back and forth a lot to be aware of the turn around. The credit institutes know this and are therefore very reluctant to lend to self-employment.

So, what to do if a self-employment loan is urgent, but you are not in a position to avail yourself of this loan? Only if you are looking for active support, a loan for self-employment works. If it is a job loan, then the guarantor who is needed urgently should come out of that position.

This avoids the guarantor having to stick to his private capital and his articles. On the other hand, if the loan is for the private sector, the guarantor can come from the private sector. Not only as a guarantor, but also as a true competitor. This allows to use both business partners at the same time and reduces the default risk.

Loan for self-employment is sought

Loan for self-employment is sought

If self-employment is still in its infancy and the loan for self-employment is sought, eg to become one’s own company founder, one can also rely on public funding. There are very special loans for business founders, which require less security and pave the way for self-employment.

For a self-employment loan as the founder of a new business, you must be able to present a business plan that presents the project in detail and shows the principal bank that you not only have your own ideas, but that they can be implemented. Otherwise, it can be assumed that you will hardly have any chance of a loan elsewhere.

If you do not get a loan in Germany, you’ll soon think that you can certainly find what you are looking for on the internet. If you work in a permanent position and receive a good and stable salary, such a loan is also possible. Unfortunately, as a self-employed person you can not avoid such a loan.

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