How to request a loan to do works at homeOn December 27, 2019 by Ana Funchess
With the return after Easter holidays and the arrival of good weather, many families plan to make renovations at home.
Sometimes it’s just about renewing the painting, but at other times the matter goes a little further. And the change is almost integral. It can be a turn to the kitchen, the bathroom or both. Change furniture or throw partitions to make a room bigger.
Depending on the magnitude of the work, its cost can be increased. And even reach 70,000 dollars. In order to face the work, it is often necessary to ask for funding.
There are fewer and fewer entities that offer loans
Whose specific purpose is to cover the cost of some works. Depending on the financial one, these can offer up to 100,000 dollars, with an interest rate that can range from 5.00% to 7.00% to be amortized for up to 10 years. They may have opening commissions and, if any, reach 2.00%. This is what the comparator of financial products CredNice has been able to verify.
Today the most common is that a personal loan is requested for any purpose. Roughly, the conditions are the same as those indicated, but may vary depending on the financial, the profile of the applicant and the work to be performed.
What can the bank ask me?
To grant a financing product, banks and financiers must be sure that the person to whom they will give will be able to return it. We refer both to the money he asks for and to the interest he generates in the agreed time. That is why they study their past and present financial profile and try to project the future.
For this they will request, among others, the following documentation:
- DNI, NIE or any other identification document
- List of the applicant’s assets when he has the loan. If you have properties (houses or cars), external income (rent of an apartment, for example), other accounts, savings, actions …
- If you have a home owned, deed. If you live on rent, the contract.
- Latest supply bills (electricity, gas, telephone, water …).
- If I had other loans, the last receipts.
- Latest income statements.
In case of being employed by others:
- Last payrolls (two or three, depending on the bank)
- Photocopy of the current employment contract
In the case of being autonomous:
- Last declaration of VAT and payment of freelancers in Social Security
In addition, in the case of loans for some works, they may require a proforma invoice. They make sure that the money we ask is for that purpose. And that amount is not greater than what is needed.