Credit for house renovation
As beautiful as one's own house may be – at some point the moment comes when a house renovation becomes necessary. If this is intended only for one or two rooms, this can usually be done with the help of existing financial resources. However, if the renovation work turns out to be somewhat more extensive, it may make sense to take out a home renovation loan. It allows a comprehensive renovation according to the ideas of the owners and provides exactly the money for it, which is urgently needed.
Which type of credit should be used?
As a loan for a home renovation offer two types of credit. On the one hand, the traditional installment loan and on the other hand, the real estate loan or renovation loan, which can be taken under very specific circumstances.
Loan for home furnishings
The installment loan, which is free of fixed uses, would be the first choice if it is not yet clear exactly how extensive the home renovation will be, in what time frame it will happen and who will do it. Indeed, the loan for home renovation as an installment loan can be flexibly adapted to each project. Without the bank finds out what the money is needed for and, above all, when it is needed. This allows a margin that makes the subject of renovation shine in a very pleasant light.
The loan for a house renovation in the form of an installment loan can be taken out with a good credit rating at any bank or savings bank. The effective interest rate is low and the repayment can be made flexible if desired. However, it is important that there is a good schufa and a fixed income. Otherwise, it may happen that the installment loan can be taken only with the help of a guarantor.
On the other hand, if you are looking for a loan for a specific purpose, you should opt for a real estate loan or a renovation loan, respectively. These are not available from all banks, as they are special loans that are only granted under certain conditions.
Thus both types of credit require securities, which are requested by the banks gladly in the form of a land register entry. In addition, fixed prices and corresponding cost estimates are required so that the bank sees what the money is needed for. Those who can provide this will get very good deals, which are excellent for home renovation credit.
What about state support?
Who can prove that the house renovation lowers the energy efficiency of the house, can take up under circumstances stately promotion. This means that the renovation is supported with loans and premiums. Whether this is so depends on what renovation is to take place.
Cost estimates for the work to be done must be provided in order to have a claim reviewed. Moreover, these works must be carried out by registered craft companies. It must also describe exactly what work will be done and what benefits it will have in terms of energy efficiency.
The lending institutions check the information and will then decide whether or not to approve funding. If it comes to the promotion, only a small amount must be taken up over another credit. Namely, for the jobs that don't positively impact energy efficiency. Before taking out a conventional loan, we recommend that you check whether a government subsidy can be claimed. In fact, this is much more often the case than is assumed by most homeowners.