In life, you can sometimes want to acquire something, without necessarily having the necessary amount for this purpose. If you want to buy a house for example or get a new car, know that it is possible to request a loan from banks or various credit intermediaries.
The loan you take out is generally called a “mortgage loan”. For this purpose, the lenders may possibly lend you the amount of money that you lack. You will then reimburse the latter in installments and in exchange for this loan granted, you will pay interest as well as costs. Find out why it is worth taking out a mortgage loan.
Useful information on mortgage credit
Mortgage credit is a type of bank loan that can be granted to you, by guaranteeing one or more of your real estate. This loan can be set up both for the acquisition of a new property and for an investment in an old heritage. It should be noted that the pledged goods must belong to you in your own name and no joint and several guarantees can be accepted.
This means that you do not have the right to guarantee, even simply a mortgage, for property belonging to third parties. Furthermore, the mortgage allows your bank to be sure that it can recover the entire amount. the amount you have loaned if you stop repaying. Thus, it will seize your property and then sell it, in order to restore the loan that you initially expected.
The mortgage is open to anyone who is experiencing financial difficulties. It can also be granted to a person who has an essentially real estate heritage, wanting to constitute investment, without giving up his personal property.
The borrower can be a simple employee, a trader, an executive in a company or even a retiree. The amount of the loan is determined via a technical examination of the value of your real estate assets. This amount is generally between 50 and 70% of the estimate of the property and is thus quite limited.
What are the types of loans?
There are two different types of loans for an individual like you. Indeed, financial institutions can offer you a mortgage loan or a consumer loan. A mortgage is the amount of money you borrow especially when you want to buy a house, land or finance work for your home. It is generally a fairly large amount, with a repayment term extended over time.
When it comes to applying for consumer credit, you can apply for it if you plan to buy a new car, finance personal needs, and even plan your wedding. Unlike the mortgage loan, you will, therefore, have understood that the amount borrowed will often be less and the same will be true for the duration of repayment, which will also be shorter.
The advantages of mortgage credit
- Thanks to a mortgage loan, you have above all the possibility of financing your property purchase project, in particular when no conventional loan has been granted;
- Even the elderly can aspire to obtain credit in order to acquire a new or old property;
- No loan insurance is required, but you can sign one if you wish, without it affecting your credit application;
- No domiciliation of income or request for investments is necessary, even if you only have property income instead of arrears or professional activity. The evaluation of intrinsic income will be even more interesting;
- If you are a business, you can buy real estate, for example, to help children with their studies. Later, you will be able to rent the property or make a donation to the children themselves.
The special features of a mortgage loan
In the event that you are not the sole owner of the property that you wish to cede as a guarantee, those who are in bare ownership or in usufruct will have to vouch for your commitment.
A mortgage credit can also be fine. This is a loan for which you will only pay interest during its term. This period is included between 7 to 15 years and the notary will give you a cash agreement when you sign the notarial deed concerning the loan. Be careful, however, because you will necessarily have to sell real estate so that you can repay the amount borrowed in the prescribed period. You cannot request the transformation of a loan in fine into a repayable loan.