What clearly dominates the loan market? These are loans that can be described as consumer loans. Their main characteristic is that they do not require anything other than confirmation of receipt and proof of good creditworthiness. The limit is the amount you can get. Who wants bigger, he has to guarantee something. This is common for loans such as:
- Classic bank mortgage
- American mortgage
- Loan with real estate collateral
As far as the pledge is concerned, there is no problem to use virtually any real estate. Take a look with us at the possibilities available in this respect.
Let’s start with a classic. This is an apartment that is now considered a property that is absolutely classic. Needless to say, it can be guaranteed for two types of loans. For the non-purpose it is necessary to own the apartment first and then to guarantee it when applying for a loan. However, there may also be situation number two, which is based on the fact that a bank mortgage is applied for. In this case, it will be guaranteed by the apartment, which will be financed by the given loan.
Since there are apartments of many variants, it is necessary to say that everyone can have a different price, from which the amount of money can be obtained under the guarantee. The price is primarily influenced by:
- Size of the apartment
- Technical condition of the apartment
- Location of the apartment
In second place we also have a clear and typical property, for which the same applies as in the case of an apartment. We are talking about the fact that the house can be guaranteed in the case of a non-purpose loan, as well as with the guarantee of the classic mortgage, which was financed by his purchase. Here too, the value of a house as a property is determined by the factors mentioned above. However, there is also the size of the land, which can significantly increase the total price when valued. Especially when it comes to a well-kept garden.
It sounds quite unusual and unique, but the truth is that real estate guarantees can be applied in this case as well. However, the possibilities of non-purpose loans are not considered. This path is only associated with a situation where a standard bank mortgage is required. It will be used just for the completion of the house.
How is it in practice? Very often the bank first covers the land on which the house is to be built. It also releases the agreed amount gradually. It is therefore guaranteed real estate, which gradually grows and so its value increases. Therefore, additional valuations are needed to confirm that the money released has been refurbished, the property has a higher value and so more money can be released. All this until the final state, when the house is built and the bank guarantees the mortgage as a whole. Those who finance the construction with a mortgage, it is precisely this procedure.
It may not mean anything to some, but as far as a bank or a non-bank company is concerned, the land can be just a simple and trouble-free guarantee. What is its value usually depends on how big the land is and also where it is located. We cannot omit the fact that land of one type may have a different price compared to another. If we look at a few main variants. Includes:
- Meadows or forests
- Building plots
What type of land is determined mainly from the zoning plan and also from the land register. As everyone probably knows quite well, the biggest price today is land plotted as building plots. In good places they can even have a price like an ordinary apartment. There is no reason why they cannot be guaranteed.
They are also real estate, and even banks or non-banking companies can accept it when talking about a mortgage loan. However, for this to happen, it must be a holiday home of a certain value. Decide location, condition, but also size or land. For example, garden cottages worth a few tens or a hundred thousand are quite unsuitable for this purpose. Just because the amount of money can offer a classic consumer loan without any liability.
However, when it comes to an interesting cottage and cottage whose value is close to the price of an ordinary apartment or family house, there can be absolutely no problem with the future pledge. However, it depends on the type of bank or non-bank company. After all, it is necessary to say that this type of collateral is not as common as the others. Therefore, it may happen that the loan applicant is rejected. This is because the liquidity of such objects may not be as good as in the case of houses or apartments.
Storage and production facilities
There are not many private individuals who have something like that. And if so, the properties either sold or are transferred to the company and are currently rented. And so we slowly but surely come to the very core that even storage and production facilities can be taken as real estate with which it is possible to guarantee.
It should be added, however, that this is not usually the case with private loans, but mainly with business loans. It is not unusual that even entrepreneurs can look for loans that are guaranteed property. For some types of loans they do not even have another option. And since the business segment is not usually associated with the fact that companies own family houses or apartments, it is possible to guarantee the storage and production facilities. As with many other properties, many things decide the price. From size and location to the overall technical condition or the possibility of future use.