Moderate financial burden
Mortgages are taken for a term of up to 30 years, which makes the monthly payment significantly smaller. This is one of the most important differences between housing loans and non-targeted loans. Thanks to this, even families with low incomes can afford to buy their own home.
Minimal risks when concluding a transaction
Banks conduct independent checks of real estate objects. This provides additional guarantee that the buyer will not suffer from fraud.
Cons of a Mortgage
We mentioned the disadvantages of this type of lending in the lithuania mobile database section on the advantages of non-targeted loans. Let us list them briefly:
housing owned by the bank;
insurance costs;
restrictions on real estate;
long-term registration;
the need for a down payment.
It all depends on the amount and terms of the loan. If you already have savings and need a small loan, it is worth taking a non-targeted loan. This way you will immediately receive the property as your own and will not spend money on insurance.
If you need to buy expensive housing, and the family's income is low, a mortgage is the best option. Since the property is registered as collateral, and the loan term can reach 30 years, you will have a high chance of approval. At the same time, the monthly payment will not burden the family budget too much.
Which is easier to arrange?
The easiest way is to take a non-targeted loan without collateral, but this way you can get a not very large amount. For a secured consumer loan and mortgage, you need to prepare more documents.
The likelihood of approval depends not on the type of loan, but on its terms, your income and credit history. If you have a high debt load and often make late payments, it will be difficult to get approval from the bank. It is important to keep in mind that the total amount of payments on all loans should not exceed 50% of the family's monthly income. If you apply for a mortgage with a short term and too large a payment, there is a high probability of refusal.