When the renovation of second-hand houses requires renovation loans, those who apply for renovation loans should also plan the amount of renovation loans in advance. Different banks have different requirements for the proportion of decoration loans to the overall decoration costs, so when using second-hand housing decoration loans, the decoration costs should be controlled reasonably.
What should I pay attention to when applying for a decoration loan?
1. Decoration loan quota: Some banks strictly control the decoration loan quota, and too high decoration loan application quota will lead to stricter post-loan management of banks.
2. Scope of application of decoration loans: decoration loans can only be used for businesses that cooperate with financial institutions. Applying for this kind of loan will waste the loan amount and interest expenses.
3. Make a good plan before the renovation loan: the bank applies for a loan with low interest and standardized management. The disadvantage is that the loan review cycle is long, and it is necessary to plan the decoration in advance before applying for a loan.
Do I need to sign renovation contract for the renovation loan first?
The decoration loan needs to be signed with the decoration company in renovation contract first, and the decoration loan needs to be paid by the bank to the decoration company. Without renovation contract, the bank can't be sure that the applicant has the intention to decorate, so you need renovation contract to apply for a mortgage. In addition, many decoration companies have cooperation with banks. After signing the renovation contract, the decoration company will ask customers to go to the designated bank. Relatively speaking, cooperative banks are much more convenient.