Advantage of a modernization loan for financing
If you own a home, you should take advantage of a modernization loan for financing. Because even after the construction of a house or a house purchase renovation or renewal work is necessary after a few years at the latest. Even if a building has a solid and high-quality building fabric, over time there will be various renovations or extensions that should be carried out.
Their own needs and requirements change with age, for example to provide more accessibility. Small to medium-sized projects at the home can best be realized through a modernization loan.
Financing renovation and home or home renovation through a modernization loan offers homeowners a great opportunity to earn money on short notice and on favorable terms. Small and medium-sized projects can be implemented with relatively low credit sums, so that a modernization loan is worth much more than financing through a real estate loan.
Which features make up the modernization loan?
In principle, a modernization loan, while strictly speaking a loan for real estate, is more like the normal installment loan than an annuity loan.
Decisive for the award is the existence of a sufficient solvency and a positive credit rating. A modernization loan is a purpose-built loan, which means that it can not simply dispose of the use of the approved funds.
A big advantage of modernization loans compared to Bauspar contracts or real estate loans are the short-term availability of money and the failure to register a mortgage in the land register.
The maturity of loans for modernization usually extends over a period of 10 to 20 years, but can also be adapted flexibly to individual wishes.
Request a modernization loan: that’s how it works
To apply for a modernization loan, there are numerous ways to put it into practice. Direct banks that operate only on the Internet, but also branch banks, savings banks and building societies offer modernization loans to some very favorable conditions. A request can conveniently be sent online (more about online loans) or at least once before calculate the term and interest rate for the required loan amount.
Once you have decided on an offer and informed yourself in detail about the exact conditions, only the credit agreement has to be signed. Depending on the provider, the data and documents of the borrower are transmitted by mail, online or by telephone and, if necessary, verified by the procedure.
These conditions are important for a modernization loan:
As with most other forms of credit, the borrower must have certain basic requirements for granting a modernization loan. In addition to a main residence in Germany, proof of income must be provided. For example, there are separate conditions for self-employed and pensioners with a pensioner’s loan or a self-employed loan. The age of the borrower also plays a role as well as information about the creditworthiness. The most important criteria for applying for a modernization loan are:
- Achieved age of majority
- Main residence is in Germany
- Regular income from a non-self-employed activity
- Employment is no longer in the trial period
- No negative credit bureau entry. If you have a negative credit bureau entry, you may be able to delete it.
For some modernization loans, in the case of couples, in some cases, both partners must meet the criteria and sign the loan agreement together to obtain the loan. If these requirements are met, the chances of a quick grant are particularly high. But otherwise there are ways to get a modernization loan from various providers.
Modernization loans for housewives, the self-employed, freelancers, pensioners, the unemployed and Co.
Even as a housewife, houseman, unemployed, retired or self-employed, you have some chances for a modernization loan. First and foremost, the granting of such a loan depends on where it is applied for. In order to find a suitable and fair credit for the modernization of the home even in not ideal conditions, it is important to intelligently compare the offers in the market.
As an alternative to branch banks, savings banks or direct banks, investors and private investors also offer modernization loans. The advantage here is that the guidelines are not rigidly dictated by financial institutions, but in individual cases can be adapted to the individual situation. Thus, groups such as housewives and self-employed persons or those who have just become unemployed are also being able to finance a possibly urgently needed refurbishment.
Private lender, direct bank or building society: Here is the modernization loan
Depending on one’s own situation and income situation, not every credit provider is suitable for applying for a modernization loan. Classic variants in the house bank or the building society often give no modernization loans to the self-employed, retirees or unemployed. Those who are solvent enough for a reliable repayment, but have no regular and predictable income, yet have other ways to obtain a loan for modernization.
Private investors and private lenders often offer loans to finance home improvements with more flexible terms. So it pays to be thoroughly informed in advance about all options in order to find a fair and favorable offer for a modernization loan, even away from the traditional banking houses. Retirees who want to rebuild their home barrier-free, for example, benefit greatly from this variant.
Modernization loans: Compare conditions and check
In order to realize living requests in a timely manner, there is the right financing solution for a wide variety of modernization plans. Modernization loans can also be combined with government support under the right conditions. An intensive credit comparison is therefore very important to find the right offer.
Free special repayments are a factor that is often included but not self-evident. Therefore, even after a consultation of various comparison portals, the individual components of the contract and clauses should be examined in detail in order to overlook nothing in the so-called “small print” of the credit agreement.
Instant confirmation and Sofortüberweisung modernization loan
With a voluntary modernization of dwelling or house is in many cases no great hurry. A new bathroom, the renewal of the heating system or the removal of the roof truss in non-acute cases requires a certain planning phase, in which there is also sufficient time to apply for a modernization loan under normal circumstances.
If a failed heating system or other redevelopment needs to be done urgently, a modernization loan with instant confirmation and support is very convenient, so as not to get into financial difficulties. These forms of credit are also traded under the terms express loan, lightning loan, express loan or quick loan. These ensure that the money needed to finance a conversion ends up in your own account within a very short period of time.
Modernization loan received despite negative credit bureau entry
Many credit seekers do not know that even with a negative credit bureau entry opportunities to obtain a modernization loan. One option, for example, are loans from abroad, as these do not necessarily rely on credit bureau to check their creditworthiness. Even foreign banks often renounce the common practice of credit bureau information in Germany.
So if you can not find the right loan offer in Germany, it is worth expanding the search to providers from abroad. Swiss loans are in many cases also known as “credit without credit bureau” and offer a good option to loans from German providers.
Conclusion on the possibility of modernization loans
Applying for modernization loans is primarily interesting for homeowners or owners of a home who also own their property. System must be renewed, heaters modernized or the apartment made accessible, the reasons for a modernization loan are numerous. A long-term maturity of one to two decades at constant rates is characteristic of this form of lending, as is the appropriation of a modernization loan.
The financing of refurbishment measures or renovations to the own residential buildings with small amounts between € 5,000 and € 30,000 usually does not fall under the category of land charges and therefore does not have to be entered in the land register. This saves costs as well as the application to a direct bank, which can often offer more favorable conditions due to reduced personnel and rental costs. An intensive comparison of existing offers keeps loan seekers from loan sharks and helps to find a fair and suitable loan offer for their own housing needs.
Anyone who needs additional funds for renovations or refurbishments after building a house or buying a home is well advised to take out a modernization loan.