Real estate: Buy before selling with a bridging loan!

 

Buy real estate before selling your own. This is possible with the bridging loan. What are its advantages and disadvantages?

What is a bridge loan?

What is a bridge loan?

It is a form of transitional credit that is realized in the very short term (1 year renewable once). The lending institution advances to the buyer between 50 and 80% of the amount of the estimated value of the current property. This percentage can go up to 90% of the value of the property if a compromise is already signed for the current residence and the suspensive clauses lifted.

The bridging loan can extend the time spent on the sale of your current property. You may have a tenant a few weeks or months after taking out the bridging loan. You will then reimburse the capital borrowed and the interest previously fixed, all without prepayment penalty.

Global, classic or dry. Which one to choose?

Global, classic or dry. Which one to choose?

Several types of bridging loans are available.

The so-called “global” bridge loan. It is a single rate envelope comprising the loan that you already have in progress, the bridge loan and the additional long-term loan that you need to buy your new main residence. When you sell your current property, you will reimburse the portion allocated to the bridge loan plus interest. You will thus have a unique monthly payment.

The second, classic, is done with a “total or partial deductible” depending on the terms of the lending bank. In the event that you have not settled your current mortgage, this credit leads to the accumulation of the two loans. The purpose of this loan is to make you repay the interest in one go, at the same time as the principal borrowed.

The last solution is called “dry” bridging loan. It is an advance from the lending organization for an acquisition amount less than or equal to the value of the property you own. It only applies if the current principal residence is already paid. With the money from the sale, all of the loans will be repaid on the sale of the current property.

Cons and pros

Cons and pros

The bridging loan is not without risk. Falling property prices, overestimating the value of the property for sale and the location of the property are factors to be taken into consideration. Indeed, if you cannot sell your property at the estimated price and within the maximum period of 2 years, this solution can be expensive. In the extreme case, the banks can seize your good at a ridiculous price to reimburse themselves of the loaned amount.

It is an alternative to be able to acquire a property before the sale of the current property.

It also avoids rental between the transitional period.

Guarantees are essential

We cannot deviate from the guarantee rule for a loan, whatever its form. For bridging loans, as for conventional loans, the bank can choose between two compulsory guarantees:

  • The mortgage
  • Or the deposit of a specialized organization

Find real purchasing power with the purchase of credits

If your current loans occupy too large a place in your budget and you wish to benefit from more means at the end of each month, know that the buy-back of credits exists for that. What help you restore a more comfortable standard of living.

The objective is to maintain your purchasing power at a correct level

The objective is to maintain your purchasing power at a correct level

According to the government’s definition, your purchasing power corresponds to the quantity of goods and services that your income makes it possible to buy. If you repay several credits, it generally depends on your remaining living, namely what you have left once your charges and loans are paid.

The lower your remaining living, the more your income is allocated to repaying your loans and current expenses. A little left to live is therefore often synonymous with small purchasing power.

Debt restructuring is a solution with multiple advantages

Debt restructuring is a solution with multiple advantages

The process is as follows: all your loans are combined into a single loan. In this way, you only repay a single loan from a single lender. All kinds of loans are concerned: real estate, consumer or renewable.

Significant advantages:

  • the unique monthly payment, adapted to your budget and including loan insurance,
  • solving the problem of the multiplication of credits and the risks of non-payment,
  • managing your budget made easier by consolidating your loans,
  • the decrease, up to more than half, in the amount of your monthly reimbursement,
  • the end of over-indebtedness and its prevention.

In most cases, this solution is relevant because it is profitable: your living space is improved, so your purchasing power is also improved.

The operation is all the more valid if you benefit from the best offer

The operation is all the more valid if you benefit from the best offer

Be aware, however, that the benefits of buying credit are only possible thanks to the extension of the loan term. Its final cost can also be noted. It is generally advisable to pay more attention to the profit and the lower monthly payment obtained.

Remember that getting an offer to buy back credits on your own is not recommended for two main reasons:

  • comparison and procedures are time-consuming,
  • the offers you get are rarely the best for your expectations.

A loan buy-back found by a broker offers more advantageous and suitable conditions!

Net loan amount a difference between a gross loan amount

What is a net loan amount?

What is a net loan amount?

A loan amount is the total amount to be paid out. This does not include costs that are incurred in addition and which have to be repaid in accordance with the Federal Code. There is therefore a difference between a gross loan amount, which is understood to mean the entire loan debt, and the amount to be paid out, which the bank customer can use for specified purposes.

Where does a net loan amount occur?

Where does a net loan amount occur?

Net loan amounts occur wherever a customer applies for a loan from a bank or other credit institution and receives it. If approved, this net loan amount will be credited to his account. Furthermore, there is also the possibility that the entire amount is sent directly to a seller, for example to finance an order, or in the event that there is a residual debt at another bank.

It is important to know

It is important to know

The actual cost of the loan is naturally higher, as the loan amount shows. In addition to the actual net loan, there are costs such as a processing fee that the applicant has to bear. Insurance is also usually taken out to cover the debt in the event of a permanent illness or the borrower’s death. In addition, there is also the possibility that any placement costs for the applicant must be paid. However, this is only the case if, for example, you want to purchase a car or the like on installment credit and there is an intermediary fee between the car dealer and the dealer’s house bank. In any case, you should always make comparisons about which provider has the best conditions.

Full credit and the help of Nice bank made the impossible come true. We got a loan within a week. Everything went very smoothly. It was a small miracle for us, because nobody has been able to help us, not even the house bank. We can only recommend Full credit and will use Nice bank Services again. 

Apply for your fast loan on the well known bank

 

Sometimes it just has to be quick. Financial bottlenecks cannot always be planned. You are not always aware that you may need a certain amount of money in a few days. A Fast credit can be of great help here. The focus is on the immediate payment. Fast processing usually makes it possible to receive the money within 24 hours. With Full credit bank you have the opportunity to take advantage of such a Fast credit. After successful authentication, you have the money in your account within 24 hours at the latest.

Fast credit can be of great help here

Fast credit can be of great help here

Free credit request With a net loan of $ 4,000 and a loan of 72 months, 2/3 of the new customers receive in advance. an eff. Interest rate pa of 7.9% or less (born debit rate 6.45% pa) Important: In your own interest, please do not make any further credit inquiries, as multiple inquiries (also from other providers) can lead to irritation and the blocking periods can be imposed by the banks in question.

The dishwasher suddenly stops working, but was a new washing machine just due last week? Have you forgotten to settle a higher bill or would you like to get out of the overdraft facility as quickly as possible? There are numerous reasons for a Fast credit with immediate payment. Many people know of liquid bottlenecks. They often come unexpectedly and before you have to deal with a loan application for a long time and carry out credit request for credit request, you can use Full credit bank as a credit broker. We offer you a Fast credit with a payment within 24 hours.

How to benefit from a Fast credit

How to benefit from a Fast credit

Full credit bank is at your side as a credit intermediary – whether it is a mini loan or a higher installment loan. As a credit intermediary, Full credit bank has many years of experience. This enables us to quickly and effectively provide you with an instant loan with a short-term payment. In addition, you can benefit from our information in real time. We will keep you informed by SMS or email about how far your loan application has progressed. As soon as the promise for your loan contract has been made, it can go on. With our offers, you don’t have to worry about additional products that you don’t need. Insurance or credit cards are not sold here. It is important for you to get a loan on fair terms. With special offers, such as special repayments or a practical installment break, you remain flexible.

When is the lightning loan paid out?

When is the lightning loan paid out?

Small loans are particularly often offered as a lightning loan. With Full credit bank you can also get higher amounts paid as an applicant in a short time. The loan offer will be sent to you quickly. At Full credit bank you can fill out the application form quickly and easily online. As soon as your loan application has been received, it will already be processed. The processing times are 20 to 30 minutes. Once you have filled out everything, the immediate approval for the loan is not long in coming.

In order to be able to make the payment, however, legitimation is still required. With Full credit bank this too is carried out within a short time. For this we work with online PostIdent or VideoIdent. This means that you can carry out the authentication from home with an ID document. If the implementation was successful, payment will be made within 24 hours.

Does the Fast credit affect credit bureau?

Does the Fast credit affect credit bureau?

If you apply for a Fast credit via Full credit bank, we act here as a credit broker. We ask our partner banks from the network which conditions they can provide. These inquiries are completely credit bureau neutral. It is also possible to arrange a Fast credit without credit bureau. However, the risk of default for the banks is higher. This then adjusts the conditions for the loan. Since the interest rate is higher here, the rates and the loan term also increase. It is all the more important to carry out an individual comparison of the offers. Plan in advance when you would like to have the lightning loan repaid.

What do my offers look like?

What do my offers look like?

As soon as you have sent your loan application, it will already be processed. In order to be able to make the instant loan available as quickly as possible, Full credit bank provides you with various loan offers. In their presentation, these are based on the pricing regulation, which is also referred to as bank. This means that all costs and interest must be visible to you. Specifying the effective annual interest rate makes the comparison much easier for you. So you can also consider the period in which you can repay the loan.

At Full credit bank we have a lot of experience as a credit broker. As a result, we are aware that the interest rate is not the only factor in deciding on a lightning loan. Other points are important for you as a borrower. How do you want to repay the lightning loan? Would you prefer small installments and longer terms? Or do you want to be through with the repayment as quickly as possible? Full credit bank provides you with a personal advisor who can support you in the decision and comparison.

Submit your application for Fast credit online now

Submit your application for Fast credit online now

A loan application can be made up of many pages. But it can also be simple and effective, as with Full credit bank. In order to be able to implement your express credit really quickly, only a few steps are necessary. The application is completed as follows:

Step 1: Enter your desired amount and your credit rate. This also asks for the borrower’s data and the purpose for which it was used.
Step 2 : Fill in further information about your rental costs, possible maintenance and proof of salary. Account statements can also be requested.
Step 3 : Write down information about your salary and your account details here.

All areas of the application are filled out directly online and transferred to Full credit bank. This enables us to start processing your request for a lightning loan and pay the loan amount faster.

The Fast credit from Full credit bank

The Fast credit from Full credit bank

Do you need a small loan of 2,000 USD or are you looking for an installment loan in a higher range? With Full credit bank you as a borrower can get a lightning loan on fair terms. On request, the loan can be issued without credit bureau, so that your loan installments remain clear for repayment, the terms are between 48 and 120 monthly installments. We process your loan application immediately after receipt. Of course, we treat him confidentially. Full credit bank only forwards inquiries for the Blitzkredit to financial partners. The offers for the applicant are free of charge and also non-binding for you.

Particularly great: The Fast credit is not subject to a specific purpose. You can specify your purpose. But that is not a requirement. A rush credit or lightning loan is ideally suited to finance short-term purchases. As soon as your application has been checked and accepted, legitimation can take place. The payment will then be made within a short time after the loan approval has been received.

What is a Fast credit?

What is a Fast credit?

A lightning loan is an installment loan that is characterized by a quick payment. This makes it ideal for bridging short-term bottlenecks. Unlike a conventional installment loan, where the decision can take several days, an instant loan gives you the promise of the desired loan amount within a short time. This is possible through a special procedure for lending. As a credit broker, we work with different loan providers and can make different offers to the borrower. The funding partners require self-disclosure from the applicant. You can also speed up the process with a second borrower. At Full credit bank you can apply for the Blitzkredit with or without credit bureau.