Real estate financing is a tedious business. The term is at least ten years. After that, follow-up financing is needed in most cases. Now the legitimate question arises whether a loan is possible despite real estate financing.
Beware of over-indebtedness
A real estate loan incurs far higher rates than a installment loan. In addition, it is unpredictable what happens within the long ten-year term. Unemployment could become a topic or the borrower becomes so seriously ill that he can no longer work. The banks are likely to see the same and refuse a loan for sure despite real estate financing. The borrower should ask himself if there is an urgent need for another loan. If the installments for the property are no longer paid, then the house or apartment passes to the bank and the borrower becomes homeless.
If need be, most consumers still have access to the current account disposition, which can be used as a loan if required, in spite of real estate financing. But you should be aware that the use of very high interest rates.
Loan by private
For traditional banks, a loan should be almost impossible despite real estate financing. For too long now there is the portal Creditend on the internet. Here are the chances for another loan significantly better. That’s because this is an association of private individuals who lend their money. The reason for this is simple, because there are higher returns due to interest rates than any other form of investment. After a successful registration, the user can state his loan request and specify the amount of the monthly installment. With luck, he will find suitable financiers. Although the guidelines for lending are not as stringent as those for banks, a review of Private Credit is also taking place here. The real estate loan is thus visible. For this reason alone, one should play with the loan request with open cards. This increases the chance of a loan.
Can the real estate loan be increased?
No. A real estate loan is earmarked. The initial term is as fixed as the amount of interest. A conventional installment loan can be increased. In the case of a real estate loan, no additional costs can subsequently be borne by the borrower. The purchase price of the property is fixed and was recorded by a notary. For other purposes, this loan is not available. Therefore, there can not be an increase.
The lending bank will reject another loan anyway, because it fears the risk. Only an internet bank could agree to another loan. Dependent is a loan commitment of several factors. The loan rating must be good, the loan amount not overdrawn and the monthly installments must be affordable despite the rate for the real estate loan. Such a project is really only possible if the borrower has a very good net income. In addition, a new loan should be hedged accordingly. A residual debt insurance would be advantageous here. Some banks, in any case, make a loan commitment dependent on the conclusion of such a loan.