Matters needing attention in applying for housing decoration loan
Applicants can apply for housing renovation loans with the renovated houses as collateral. As long as the renovated house is not mortgaged in the bank and meets the requirements in terms of face value and market value, the loan amount is generally about 70% of the value of real estate assessment. The applicant may also provide a loan guaranteed by an enterprise legal person or a guarantee company capable of paying off on its behalf. If you continue to pay the provident fund for half a year, you can also consider applying for a provident fund decoration loan.
If the house renovated by the applicant is mortgaged property, in principle, the mortgaged house has been mortgaged to the bank, and it can no longer be used as a mortgage to apply for a loan, and no real estate license has been obtained. However, some banks will provide decoration loans to our mortgage customers, even if the house is being mortgaged, it can also be used to apply for decoration loans.
Because banks also have similar decoration loan products, that is, after their banks have applied for mortgage loans, they can apply for decoration loans in their banks to mortgage houses. However, it should be noted that the renovation loan amount is also related to the value of the mortgaged house and the remaining mortgage loan. However, it is best to provide another property or asset as collateral to apply for a loan.
How to apply for a decoration loan?
According to the relevant provisions of bank loans, the money from bank decoration loans cannot be withdrawn, and the bank will directly transfer the decoration loans to the designated decoration company account for special purposes. Banks do this to prevent borrowers from misappropriating loans for other purposes, resulting in unpredictable risks. The state can also control the flow of funds in this way, so as to better control the direction of economic development.
The special requirement in the house decoration loan is to have the house renovation contract, decoration budget and related materials signed with the decoration enterprises recognized by the relevant departments; Some banks also require owners to have no less than 30% of the total decoration budget, and then use the loan after investing in the project construction.