How to build a house if there is no money for construction? Practical advice

Affiliate material. Building your own home is the dream of many residents of stuffy megacities. And quite often you can face a situation where earnings allow you to maintain and maintain a house, but there is no required amount of savings for a one-time spending. What to do in this case?

Current options

Mortgage lending for a country house under construction, an apartment in the city, and CONSTRUCTION of a house are, as it turned out, completely different products.

• The purchase of a house under construction (townhouse) under mortgage programs is beneficial to banks. Real estate acts as security for the transaction and the lender does not risk anything at all. In case of termination of payments, the property will go to the bank and go under the hammer, and the proceeds will cover the costs.
• Buying an apartment follows the same pattern. The borrower does not fully own his real estate until the moment he has paid off the debt in full.
• A loan for building a house is a separate life! To issue funds for the construction of real estate that is not yet in nature, and not the fact that it will be - the operation is more than risky. Not every commercial bank will go to issue such a targeted loan, unless there is additional collateral that will more than cover all the risks.
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Advice: We recommend that you first purchase a plot with your own money. For the bank, this can act as a guarantee of solvency. Some creditors allow the use of the land plot as security (collateral).

Based on the above, the only suitable option is a loan for further construction.

Is it realistic to get a loan for construction?

Let's answer right away - more likely no than yes! In principle, few banks provide such a financial service. Therefore, it is practically not worth hoping for approval even with an ideal credit history and decent earnings.

The manager of one of the well-known and large banks explained that such loans are extremely rare. Even after a positive bank decision, the situation may stop short: construction documents will not pass numerous checks and approval will be revoked. These are features of the internal banking regulations, it will not work to influence it, it is better not to try.

Advice: The lender will require an official building permit. Its registration, by average standards, will take several months from the borrower. It turns out that while an official permit is being issued, the relevance of the banking decision expires - there is a permit, but there is no approval in lending. If you decide to go this way, it is better to first issue a permit, and then contact the bank.

It turns out that it is impossible to get a loan for construction, so another option should be considered.

What if a consumer loan?

If you decide not to apply for a loan for construction, then another way opens up for you - consumer lending. We recommend that you carefully consider this step and proceed with implementation.

The first thing that is required is an estimate. It is necessary to reflect any expenses in it, even the most minimal and seemingly insignificant (when you are finished, be surprised at how much they can result). Calculate the construction period and the amount of injections at each stage.

Advice: Better to get a few small loans. Not immediately, but in the process of work. You will not have to pay interest on a large amount, fewer documents will be required, the risks of failure are minimal and construction can begin immediately after receiving the funds.

There is a financial marketplace Banklab to study current offers. With its help, you can select the most advantageous offers of Russian creditors and submit applications on several options at once, which increases the likelihood of approval.

When the work is at the stage of completion, you can again turn to Banklab for the selection of an option to refinance the existing debt. Collecting several small loans into one more substantial one and reducing interest at the same time is the best option.

So:

• Estimate. When and how much funds will be required.
• Studying bank proposals and applying for loans as needed (https://www.banklab.ru/- very convenient service).
• Refinancing on the security of an already built house.

How to make an estimate

The estimate is the head element of all work! Going beyond the budget shines with missed deadlines and a complete stop of work. To prevent this from happening, we recommend:

• Determine for yourself which house you need: brick, frame, gas or foam concrete, timber, logs, etc.
• Study market offers, such as forums and developer sites.
• Get acquainted with the price list of construction companies of various sizes, depending on the specialization.
• Describe the stages of construction, based on the type of future home. For example, a log house is erected in 2 stages: first a box (foundation, walls and roof), then communications, external and internal finishing. Time must pass between stages. The log house shrinks naturally. It is pointless to start finishing work before the completion of this process.
• Calculate the amount of materials required for the implementation of each stage. And make a preliminary calculation.

The final estimate should include the exact cost of materials.

Advice: We recommend finding companies that provide a wide selection of materials for construction and repair and can provide not only a comprehensive supply to your facility, but also offer a discount.

Completed home registration

Of course, when it comes to registration, it will take a long time. But if refinancing is indicated in the plans, this issue cannot be ignored (the bank will not accept property that is not registered with Rosreestr as collateral). Official registration of real estate is a very costly and long-term business.

Advice: We recommend that you contact a third-party company that provides services for the collection and preparation of documentation, and also acts as a representative in government agencies. You can issue a power of attorney for the manager for the right to register actions (that is, he can only register your object, he has no authority to perform other operations). And it is better to do this at the construction stage, since the process will take about six months.

If by the time of completion of construction the house is officially registered, the matter will remain small. Refinance the total debt on more favorable terms and enjoy your own detached home!