What is a building loan to complete the construction of a house ? This is a medium-long term loan made available by the majority of credit intermediaries, and is intended for all those who do not have the necessary liquidity to complete the work for the construction of their home. How it works and what are the requirements to take out a mortgage to cover the costs of completing a property.
Mortgage for the construction of a building: how does it work?
It is known that building a property always involves the need to incur large costs and costs, and liquidity is not always available to meet them.
For this reason, turning on a mortgage to build your own home is the best credit solution to realize your dream of living under a roof.
This type of loan allows you to get up to 80% of the property value once the work is completed, and is an excellent solution for those who want to build an independent house, perhaps located in the countryside or away from traffic and city chaos.
It can be requested both to complete the construction of a house for residential use and for a property for vacation use , as a second home.
Feasibility ignition mortgage completion construction: necessary requirements
Like any other type of loan, it is always necessary to evaluate ad hoc between various estimates and available commercial offers.
To take out a mortgage to complete the construction of a property, the lender must assess the applicant’s financial situation.
For this, it is necessary to present all the income documentation and that relating to the purchase of the land and the subsequent construction phase of the building.
Mortgage to complete construction
Among the requirements necessary to be able to turn on a mortgage to complete construction there is the need to be the owner of a building under construction and the creditworthiness to fulfill the mortgage payments.
For the construction of the building the bank will proceed to disburse the necessary capital in several tranches according to the ” Progress of Works ” ( SAL ).
The disbursement of each new tranche will take place only if the verifications conducted by an expert will have a positive outcome.