Construction credit or personal loan, which is better?

The construction credit or remodeling of a home requires a considerable sum of money for its investment. If you want to build or are in the process of building, you have 3 options for financing: have savings. Request a personal loan or a construction loan, but which is better? We invite you to continue reading to find out.

A loan is a monetary financing carry out by different financial institutions in Mexico and is made with the commitment to pay in the future and deferred with their respective interests. There are different types of credits in the market focus on the different needs of people. So each type of credit has different benefits, characteristics and requirements.

If you are about to build your house or you are in the process of building it and you had to stop because you lack funds. You may think about requesting a personal loan from a financial institution. However this is not such a good idea. Since personal loans have different characteristics. to those of the construction credits themselves that can play against you.

Personal loans fall into the category of consumer loans where the bank lends you a small sum of money that has to be paid in the short or medium term, usually from 1 to 4 years. This type of loan is generally use for the payment of services or the acquisition of goods such as computers, televisions, appliances, among others.

While construction loans fall into the category of mortgage loans where the amount. Borrowed is much larger and usually this type of loan asks for the same guarantee that can be the same well built.

The main difference between this loan and the personal loan is the term to pay. The construction loan is much longer and is usually medium and long term, ranging from 5 to 20 years. Rydology Coupon and Promo Codes From coupons bird.

Personal loan to build
In general, a personal loan will not be of great help to you to build your house due to various factors. The first is that the amount of the loan is minimal, so it will be very difficult for you to finish the construction with that money. So you will have to put more out of your pocket and pay the loan every month from the beginning, which will only cause you to exceed your capacity. of payment and you cannot fulfill the terms of the contract.

grtsupply Coupon Code By not paying the monthly payments agreed upon at the beginning of the loan or paying less. Interest and penalties will increase and after a while the debt will be unpayable.

construction credit
On the contrary, with a home construction loan you will have benefits such as a higher amount and a longer term to pay it. The term and the amount of the loan, which vary depending on the bank.

When requesting a construction loan. The bank delivers a certain amount as a contribution (which they call ministering) for the financing of the project depending on the progress of the work or a certain period of time.

Due to this, you will have to wait for visits from the bank. In this way, it will keep abreast of the progress of the work through. Periodic visits to determine and deliver the corresponding contributions. Consider that some banks charge for failed visits.

Others offer combined financial products, such as a home purchase loan plus remodeling or a land plus construction loan. It is important that you know this before contracting a loan of this type, since each one is handle differently. There must be an advance of the work to be able to access the first amount of the loan.  Enjoy massive savings with the Rydology Coupon and Promo Codes from Sneek Coupon.

If you want to know which construction loan is best for you. You can check with one of our Creditaria mortgage experts, they will evaluate you and. Help you get the loan that drives you to fulfill your home dreams. Without having to go to the bank in bank looking for the best option.