How Does Home Loan Work
This type of credit, so common abroad, has been gaining ground in Brazil and more and more institutions are joining this operation in their letter of financial services and each offers a competitive differential that favors the end consumer.
But how does the home loan work? Who is he indicated for? What are the conditions required to apply for this type of credit? And why is it becoming popular in Brazil? The answer to these and other questions will be given below in this and the next topics of this article.
Home refinancing is a type of loan that can offer an advantageous drop in interest rates charged and a long repayment term. For this, the person interested in this type of operation must have a property that will be given as collateral.
This form of loan guarantees the customer a percentage of the property value and provides a period of up to 15 years for repayment of debt, depending on the financial institution contracted.
The variation also occurs according to the maximum percentage that the customer is entitled to receive credit for their home. The same goes for the minimum and maximum value provided by each company.
The property that is given as collateral becomes the property of the bank, although it may normally be used by the person applying for the loan, provided that it is repaid on a regular basis, as contractually agreed. When the debt is paid off, the property returns to its owner.
Each financial institution has its mode of operation and some steps or requirements may or may not be similar. This is why it is so important to know and study each one carefully.
Among the differences, the ones that should be highlighted are the acceptance or not of real estate of various types (residential, commercial and / or land), the contemplation of individuals and / or legal entities in their services, state of the property documentation and documents personal and property requirements.
They may also vary the interest rates charged and the time of repayment of the loan, as well as the means of applying for credit (online, face-to-face or mixed), the contemplation of people with negative name and other individual factors of each institution.
As we consider sources of information to be valuable when deciding on the best credit alternative, we have found a way to gather and share them in one place, choosing serious and reliable financial institutions to help in this process, after all, money is serious thing.
How is the process for getting the loan?
To better understand the profile of those who need money, their preferences and needs, we seek to know basic information that can assist in evaluating the loan that may be most advantageous and which partner institution may be best for that person and that case.
After contacting this information, we researched among the best reputable financial institutions in the market, which are fit and to address the needs that the client has, in order to indicate the most suitable for each situation.
This helps to avoid wasting time with companies that do not offer the necessary conditions or are not viable for what the customer needs, or even their profile. In addition to avoiding unnecessary steps that only delay getting money and harms the customer’s life.
The user of our services, having the choice in their hands, has the opportunity to carefully study each of them and decide which institution will proceed with the request for refinancing property.
Although each company has its own mode of operation, they are initially not usually different from those used at Astro Finance. They also want to get to know their potential customer better and also want to receive basic information that goes deeper with the progress of the process.
These steps include requesting complete documentation from the property owner and the property owner; proof of residence and proof of income. Since each institution has its methods and requirements, not necessarily the requested documents will be the same.
As a loan method that includes a good of considerable value, companies often request a credit analysis that can show the customer’s relationship to money and their financial history and add a legal analysis.
But what is this second analysis for? In it, companies are able to see if the documentation of the property is in good standing or if it has any legal backlog that could make the loan release unfeasible.
These steps help the company profile the customer and be able to assess whether the conditions of home refinancing offered by them can be advantageous and how they could help them get the money out.
Another feature common to all of them is the offering of a maximum percentage of income commitment that the customer may have to repay his loan. The only differential concerns the amount charged by each of them.
In view of these conditions, it may seem difficult to decide which company to hire, but in addition to providing all necessary information in a transparent and simple manner, we are committed to ensuring the essential security of our service.
Advantages and disadvantages of this type of loan
Because the bank is certain that it will receive the loan money anyway, it is able to drastically lower interest rates relative to other means of credit. In addition, the client has years to repay his debt with the financial institution.
Then, the customer who offers his property as collateral and properly pays off will have the chance to have his property in his name again when the debt is paid off. This option is much more advantageous than selling the property with possible market devaluation.
However, the biggest disadvantage of this type of loan is the risk of losing the property in case of default as it will be taken by the financial institution and will be put up for auction.
Money release time can also be a disadvantage as it is not as fast as other types of credit. As there are important documentation review and survey steps, the operation may take a little longer.
However, for those who need a higher amount of money, home refinancing offers this advantage and the customer can afford to pay monthly payments that fit his pocket, with flexible payment time and more competitive interest rates.
That said, it is worth noting again the awareness and analysis of the conditions offered by each institution because like every financial transaction, refinancing real estate involves advantages and disadvantages, gains and losses, benefits and risks.
Although the bank is guaranteed to receive repayment of the loan regardless of the circumstance, it is not his wish to make his client lose his property. To do so, it will offer the best available conditions for the customer to be able to pay their debt.
With the greater knowledge of this type of loan from Brazilians and the offer of this service in fintechs and financial startups, which are mostly committed to innovations and modernities, the financial market has become more competitive.
and why this happens? Because even traditional financial institutions are also joining this type of loan and the more companies offering this service, the wider the range of choice the customer has.
The final consumer, who finds himself in the midst of offering differentiated services, obtaining benefits that would not exist if there were no such competition, and expanding choice when it comes to deciding who to apply for a loan.
One movement that can also be observed is that in addition to adhering to this new form of credit, financial institutions are also increasingly striving to offer their customers 100% online trading options that make life easier for those who need money. and you don’t have time to go to a bank branch.
They even include people who are less familiar with technology, providing detailed information about the entire process and complementary service channels that can assist in applying for a loan.
More traditional clients who prefer face-to-face contact may also have a choice of financial institution that provides this type of service. And yet, if you want to have a brief knowledge of this type of credit, you can access the bank’s virtual page and get more information.
This is one of the most transparent and expressive ways companies can commit to improving the lives of those who need financial support, quickly, simply, without bureaucracy and security.
We at Astro Finance are committed to recommending the best partners in the market who are able to offer you the best credit options at your fingertips, improving your quality of life without charge for this advisory service.
Which companies offer Home Loan?
With the greater interest of people seeking information and obtaining a Home Loan, the number of financial institutions offering this type of credit is growing, expanding the services offered by them and giving choices to the customer.
And the best companies that offer the best real estate refinancing conditions and which we are confident to point out are: NOVI Financial Solutions, FinanZero and Bcredi.
NOVI and Bcredi are sales promoters that offer their own financial services, while Bcredi is a correspondent bank that bridges a person who needs money with a bank that can provide this service.
The competitive differential offered by each of them has made them increasingly known and their services are sought after by Brazilian consumers. The commitment to continually improve your transactions is remarkable in each.
Among these options and the specific characteristics of the operations of each one, the customer has the benefit of being able to choose the service that is most convenient and better meet their financial needs and payment terms.
To assist with this process, we are committed to providing you with the best information freely available and to helping you analyze the alternative that best fits your profile and finances.
Dedication, respect and trust are important characteristics in a relationship between partners and we are committed to providing them without limit to what you need money.
Our goal is to improve people’s financial lives so that they make conscious choices and have financial autonomy, get out of the choke and make dreams come true in the best way possible.