What is the best home financing solution for your home? Everything you need to know to get out of the complicated bureaucracy

Monday, January 24, 2022, 10:10 p.m.

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The coronavirus pandemic has made even the most ardent city dwellers want a more generous, quiet home with a garden and lawn, where they can go out to recreate, away from the hustle and bustle of the city.

If you are considering buying land on which to build a house from scratch, you will most likely need a loan for the land and the specialists from storia.ro and KIWI Finance have identified some peculiarities for this type of financing.

First of all, because there is still no home to act as collateral for the bank, the support of a loan broker would be very helpful, especially because finding the best financing solution is a difficult process and has a degree of accentuated stress.

“Incomplete information and bureaucratic banking language generate the fear of a disadvantageous and irreversible choice. The whole process begins by comparing bank offers and analyzing the implications of influencing the interest rate over a medium to long period of decades.

Thus, against the background of an uncertain financial context, even a discussion with a loan broker can shed light on the list of objectives and set the strategic steps by which you can achieve them “, according to storia.ro.

Documents required for the purchase of land

The first step you need to take when considering land acquisition is to collect and legalize your documents.

A seller with no hidden intentions will not shy away from providing you with the documentation, along with any other documents certifying the acquisition of the plot of land.

  • the deed of ownership, which certifies the origin of the land and the way in which it was acquired by the current owner;
  • the certificate of fiscal attestation, issued by the local branch of the National Agency for Fiscal Administration, the document proves that the seller has no debts that can be linked to the land;
  • the cadastral documentation, which is issued by the Office of Cadastre and Real Estate Advertising. The document includes specific quotas and measurements, which attest to the characteristics of the land that is the subject of the transaction. The delimitation of each plot, as well as the related use category can be found in the location and delimitation plan;
  • the land book extract, also issued by the Office of Cadastre and Real Estate Advertising, is also obtained this document, which contains the cadastral number and the surface of the plot of land;
  • the sale-purchase contract, legalized at a notary public, this document depends on all the above, in order to be drawn up. The act will be composed of three distinct parts: the land, the parts of the transaction and the parties involved.

The guarantee will be the land

“You can finance the purchase of the land by obtaining a mortgage loan. The guarantee for the bank will be the land itself.

But the most important question customers ask is: Which bank should I go to for the mortgage loan? And how far? Well, the maximum repayment period of the loan is 35 years, so the relationship will be quite long. You don’t want to make a hasty or incompletely informed decision.

The solution is to prospect the banking market in detail. You can do it on your own, requesting offers from several banks and analyzing by comparison how the credit conditions benefit you or you turn to a credit broker.

The land evaluator will also play an important role in the final offer. It is sent by the bank, it analyzes the potential and estimates the value of the land, beyond the price proposed by the owner “, the specialists from storia.ro and KIWI Finance also detailed.

To determine the price of the land, the appraiser will consider:

  • location, ie where is the land positioned?
  • regulations, ie how is it framed according to the Local Urban Plan?
  • utility, if it has access to all utilities?
  • positioning, how close is the land to the county seat?
  • zonal potential, ie what commercial or tourist objectives is nearby?

If the loan file contains more than 200 pages and various documents for granting a standard home mortgage loan, in the case of a mortgage loan for the purchase of a plot of land, the bureaucracy becomes a little more complicated.

The main advantage of obtaining a mortgage loan is simple: you have the chance to buy a piece of land now that you can enjoy as soon as possible for the rest of your life, paying the interest in installments to the bank.

Source: Breaking News – Cele mai importante stiri – Ziare.com by ziare.com.

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