Builders in particular often take little time to search for construction financing. Usually they have a lot to do, which is why the loan search often falls short. But it's not just time constraints that play an important role. It is often assumed that a good real estate loan is found quickly anyway.
But things are not quite so simple after all. Although it is now possible to search for real estate loans online and compare the interest rates of numerous banks, for example, the search for a loan should not be taken lightly. That's because a whole host of factors come into play when it comes to construction financing.
Saving a lot of money through an interest rate advantage
First of all, it is important that the real estate loan comes with an attractive interest rate. Whether a real estate loan is favorable, can be said only after several financing offers were obtained and compared with each other. Incidentally, the statements made by bank and financing advisors should not be taken at face value. Only an interest rate comparison shows at which banks a favorable construction financing is actually accessible.
However, a good construction financing is characterized not only by a low loan interest rate. Of course, there are other points to consider. Which points these are, depends on the respective starting situation and the personal needs. For builders, for example, it may be important that the real estate loan does not have to be drawn down within a short period of time, but that several partial payments are possible over a longer period of time.
Think about the flexibility of the financing
The issue of flexibility generally plays an important role. Nowadays, life circumstances can change very quickly – and then it is a great advantage if the construction financing brings sufficient flexibility and can be easily adapted to the new circumstances. Accordingly, it is good, for example, if a real estate loan allows the provision of unscheduled repayments or an early exit from the financing is possible, provided that previously defined hardship cases occur.
Reduce interest rate risk
The issue of interest rate security should also not be ignored. Those who take out their construction financing in times of low mortgage rates, for example, may be well advised to lock in the interest rates for as long as possible. Because if market interest rates rise, follow-up financing could be costly. Borrowers who take appropriate measures to reduce interest rate risk (z.B. by choosing a long fixed interest rate),
Customized construction financing
These were key aspects to consider in the context of funding design. Which points are of particularly great importance depends on the individual case or. the concrete needs and goals.
As part of our financing advice, we take all of these aspects into account in order to develop a tailor-made construction financing solution. In the following comparison, we evaluate loan terms from over 600 financing partners. This is your ticket to low-interest financing.