However, you have to pay for comfort and prices on the real estate market do not stop rising. As many as 81% of buyers of new apartments declared that in order to buy their dream four corners, they reached for a loan. However, not everyone had to go to the bank for this purpose. Increasingly, developers offer their clients attractive forms of mortgage loans that save not only time but also money.
The mortgage market, strongly connected with the real estate market, is developing at a very fast pace. However, many bank customers still complain about the lengthy procedures and incomprehensible requirements, which are an additional burden when buying an apartment. A loan from a developer can be an extremely interesting solution in this respect.
Although formally a development company is only an intermediary between its client, i.e. a potential borrower, and the bank, the proposed conditions may prove to be definitely more favorable than those that can be counted on in the branch. In addition, real estate buyers can also expect other benefits, including, above all, a noticeable saving of time.
Development companies are one of the most important business partners of banks. In turn, these – by caring for maintaining good relations with such large contractors – are able to offer them preferential financing conditions. This also translates into a loan offer for apartment buyers: they are usually offered loans with no commission or additional fees, in most cases they can also enjoy a lower margin.
Another big advantage is the significant reduction of procedures: the financial institution obtains all documents necessary for investment appraisal directly from the developer, which saves a lot of time and money (e.g. due to property valuation).
The mortgage lending process itself consumes a lot of time and involves providing the bank with many documents. In the case of a loan from a developer, the process can take much less time and take a much different way. Most of the formalities are handled by the company’s employees, which is a great relief when buying real estate.
Increasingly, customers taking loans from a developer are also surrounded by free care of financial advisors who are to ensure the security of their budget. At the same time, some banks cooperating with developers have prepared packages of other benefits, such as grace period for paying installments until they receive the keys or a discount for required insurance.
Although a loan from a developer is a significant improvement, one should not forget that in terms of form almost nothing changes. As in any other case, the bank will apply for the price of the customer’s creditworthiness and based on its rating will issue a decision to grant a loan or reject the application. Certainly, applying for a loan from a developer is not a guarantee of receiving financing.
It will not be the best solution in all cases. In practice, it all depends on the terms of the contract between the developer and the specific institution. It is a good idea to check other mortgage offers to find the solution best suited to your individual needs.
Although development companies are not involved in mortgage lending, more and more of them are brokers in obtaining this type of financing. This usually translates into favorable conditions offered by the banks to their clients. Most institutions give up additional fees and offer a reduced margin.
The unique advantage of a developer loan is the special mode of processing the application: it usually proceeds faster than in standard conditions, and the borrower is exempted from some costs and the need to provide some documents. However, one should not forget that the developer loan is formally a regular mortgage loan. Therefore, the bank will thoroughly familiarize itself with the situation of the potential borrower and may refuse financing if it finds that the risk is too high.