Financing the purchase of your own home with a real estate loan

The definition real estate loan often merges into other areas. Of course, one can clearly differentiate it from a so-called instant loan. In particular, this becomes apparent in the interest rates. For a real estate loan, the annual percentage rate is substantially lower than an instant loan.

In general, the real estate loan is not used to finance the home, but rather for refurbishment, modernization or purchase, but often not for the construction. However, some providers also allow a free use of the real estate loan. For example, borrowers can use the low-interest loan to purchase new furniture, a kitchen, or grow a winter garden. With a classic mortgage this is only possible in rare cases. In addition, mortgage lending requires equity that can be achieved, for example, through a home savings plan. Furthermore, there is the possibility to take a mortgage loan for the construction of a home. Here, the sum of the credit is entered in the land registry . Only with complete repayment the mortgage can be deleted or shut down. The latter is recommended in this case, because when decommissioning again on the mortgage a loan can be taken. However, this should be agreed in advance with the respective bank .

The real estate loan can be applied for not only the classic way, but also online. Many internet providers not only have an instant loan in their offer, but also real estate loans . However, a positive credit rating in both cases is usually a prerequisite to obtain this. However, some credit agencies and institutions also offer real estate loans with medium to poor credit ratings. This is possible because these providers cooperate with several partner banks.

A reputable online institute is characterized by the fact that they do not estimate any initial costs. It should be paid attention to here. Also supportive may be a credit comparison. Interest and benefits are also very different on the internet.

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