After a few years, it is often time again for the floor coverings in the home to be renewed. Carpets, laminate, tiles and co are at some point unsightly, so it’s time for an exchange. However, such a project is usually associated with some costs, but can be well paid off with a loan.
Depending on the type of floor covering, the amount per square meter and the quality, different costs are incurred. In addition, must also be included in the cost of materials and craftsmen.
The costs for the new floor coverings vary depending on the material and quantity. For example, a carpet floor costs about 8 to 20 euros per square meter. Anyone who wants a special design and a higher quality, on the other hand, must expect about 80 to 100 euros per square meter. Then there are costs for the glue, other material and the craftsman.
For parquet, as an example, are priced from 15 euros for cheap models, while high-quality variants with at least 80 euros are available.
Accordingly, it is important to be clear before borrowing which floor covering is desired for which room and how many meters of material per room will be needed. In addition, it is advisable to obtain in advance before several cost estimates from several craftsmen.
In this way, it is feasible to compare the prices and choose the cheapest specialist. In addition, when applying for the loan, the bank may then be presented with a number of figures, making it much easier to determine the amount of the loan.
Depending on the required loan amount, either a classic installment loan or a renovation loan is available to install new floor coverings.
If it is a smaller house and / or it is not necessary to replace all floor coverings, but only a part of it, then this is usually enough for a classic installment loan completely.
Such a loan is useless and can therefore be freely used as desired. Because of this, you usually have to expect a slightly higher interest rate but you are very flexible with such a loan.
Term, loan amount and installment can usually be negotiated within a certain margin with the bank. The repayment is made after the payment of the loan, usually always on the first or 15th of the month. In addition, the rates are always the same high. However, it is possible that the first or last installment may be slightly different because the loan amount may not be “evenly” divisible depending on the duration. However, these are usually smaller cent or a few euro amounts.
The loan is paid off when the last installment has been paid. Accordingly, a classic installment loan is a highly predictable loan that is not normally associated with any unpleasant surprises.
However, if it is a larger house or all floor coverings must be replaced, so that a higher loan amount is necessary, then this is a renovation loan in an ideal way.
Unlike a traditional installment loan, a modernization loan is a purpose-built loan. This means that the loan may only be used for the new floor coverings and nothing else. However, one benefits here from a cheaper interest rate.
Furthermore, it is possible for a renovation loan to get a longer term and a higher sum. Moreover, the banks do not require any further collateral for such a loan and registration in the land register is generally not necessary here either.
The repayment of the renovation loan runs as well as a classic installment loan: in clear, consistent monthly installments.
Tip: If it is already apparent at this time that additional purchases are necessary in the near future, such as a new heating or even “just” the purchase of a refrigerator, then it is advisable to take these expenses into the loan.
Often taking another loan is more difficult. In addition, two loan installments must then be settled in such a case. Accordingly, it is much better to pay all expenses incurred with a loan. Such an approach is usually welcomed by the banks as well.
In order for the banks to lend, it is important that the applicant meets a variety of conditions. This includes, for example, a safe, regular income.
However, to get a loan, whether it is a classic installment loan or a modernization loan, the prospective borrower must meet the various requirements of the various banks.
This usually includes a German residence as well as a German checking account. Furthermore, the banks require a secure, regular income. In addition, for example, a good credit rating and a positive bank information must be available.
However, if it is not possible for the prospective borrower to meet the requirements set by the banks, then it is often quite difficult to obtain the loan.
However, there may still be one or two exceptions. If a guarantor or a second borrower is available, it is usually still possible to obtain the desired loan. Important here, however, is that the person then meets the various requirements of the banks from their side. Furthermore, it must be perfectly clear to the second borrower or the guarantor that in an emergency, ie when the actual borrower is no longer able to settle the loan, he must pay for the loan and pay the entire remaining loan amount.
In order to obtain a loan, a variety of documents must be available to the credit institutions. These include, for example, the last salary statements.
Furthermore, the bank must be provided with some documents by the applicant when applying for a loan. These include, for example, the latest salary statements or copies of bank statements showing the receipt of the salary. If necessary, a copy of the employment contract is also required.
For legitimacy, a valid ID card is also required. Often, however, a valid passport is sufficient.
In addition, all other paperwork required by the bank must be presented. These include, for example, the documents of an existing loan or other liabilities.
As a rule, banks ask for exactly what they are spending and spending. Accordingly, it is an ideal way to make an exact listing of this in advance. On the one hand it is possible to give the bank an accurate information immediately and on the other hand it makes a good impression. Thus, the bank quickly recognizes that they have already thought about the repayment of the loan amount.