How to available the home loan.
With the first home loan it is possible to obtain liquidity for the purchase of the first home. It is an alternative to the passable mortgage when the amount requested is low.
The necessary amount
When the amount necessary for the purchase of a property is low – usually less than around $ 50,000 – the first home loan is a valid alternative to the mortgage loan which, for these amounts, is not paid by the banks (as the costs of investigation would be too onerous for the buyer compared to the amount granted).
This type of loan is indicated for those who are looking for a low-cost or high-quality property, or for those who already have a large part of the sum necessary for the purchase of the property.
The investigation of a loan is decidedly lean and fast, so this type of financing is particularly suitable for those who have a certain urgency to receive the money.
No mortgage is required on the property as collateral. If on one hand this aspect makes it possible to streamline the preliminary investigation process, on the other the absence of the guarantee leads the lending financial institution to request a higher APR than that of the mortgage.
Home loan agreement
The law states that a first home loan agreement must contain the following elements:
- the interest rate applied;
- any other prices and conditions applied, including higher charges in the event of late payment;
- the amount and methods of financing;
- the number, amounts and due dates of the individual installments;
- the annual percentage rate of charge (APR);
- the detail of the analytical conditions according to which the APR can be possibly modified;
- the amount and reason for the charges that are excluded from the calculation of the APR;
- any guarantees required;
- any insurance coverage required and not included in the APR calculation.
Repayment of the loan
The law guarantees the consumer the possibility of carrying out the early repayment of the loan. If the consumer decides to choose this option, in addition to the reimbursement of the residual capital, he could pay a penalty that must not exceed, by law, 1% of the financed capital; the exact terms of the penalty are shown in the contractual conditions signed.
Criteria for the first home loan
Below we schematically illustrate some specific evaluation criteria of the first home loan.
- Risk policies : each Institute applies its own risk policy in evaluating requests, based on the statistical data it possesses (credit scoring). These data constitute the tool that allows the Institute to keep insolvencies below a certain level.
- Income level : the acceptance of requests is normally also subject to the appraisal of the applicant’s income level and the relationship between the latter and any repayment installment.
- Credit reliability : the creditworthiness of the applicant is of great importance. It is important to stress that this assessment has no “moral” meaning. The Institutes merely estimate the level of risk associated with each request, also on the basis of the indications transmitted by the Risk Centers. If the applicant’s credit history has some “flaws” (delays in repayments of previous loans, outstanding, etc.), the probability that the request will be accepted is obviously lower. In some of these cases, a valid alternative is constituted by the Transfer of the fifth: this solution, by offering the appropriate guarantees to the lender, allows to adopt more flexible evaluation criteria.
Request home loan
Home loans can be requested both for the main home (first home) and for the second home, and also for the purchase of a garage. They are provided by financial institutions and banks. They do not require specific requirements, except for a certain income and a credit position of the loan applicant which confirms an adequate financial reliability of the same.
If the home loan does not meet your needs and instead you want to calculate the installment that you should pay by requesting a bank loan.