What role can personal loan plays in buying a house

[Builder Samuel]

Homebuyers rarely consider personal loans to finance their purchases. Home loans are the most popular alternative because they have low interest rates, a longer repayment period, and are specifically developed for this purpose. Most clients, on the other hand, believe that a personal loan can be used to cover a down payment on a home. Making a big down payment on a house loan lowers the principal and interest rate, as well as speeding up the approval process. Taking out a personal loan to cover the entire cost, on the other hand, raises the borrower's debt-to-income ratio, which lowers their eligibility, bringing the cycle full circle.

In a nutshell, personal loans are not recommended for house purchases unless you have no other option for making the minimum down payment.

 

[btaliat]

It is a foolhardy step to obtain loan to build a house. I even doubt if any financial institutions except cooperative society, will lend a person loan to build a house. This is because they believe there may not be ways they will repay the money.

Instead of obtaining loans for building of house, there can be a way of approaching mortgage banks for loan. They will make the repayment of that loans much more easier. Though, I have seen people obtaining loans for their houses, they always have good job with good salary to easy the repayment of the loan.

 

[profito]

Real estate has ever being the best way to make decent income on net...

 

[Shigobad2020]

Though i dont like resorting to taking a loan to do anything because I have seen and witnessed how loan has wrecked many business when they can't pay back their loans , and someone say the loan company cannot grant you a loan because you are using it to build a house . But you ate right and also wrong because their are some loan companies that doesn't care about what you wanted to use the loan for so far you have a guarantor and you have a property to stand for it , but some actually will like to know what you want to use their money for .
I can only resort to taking loan to build a house if I am going to rent the house out to tenants and makes money from the house renting while using the money to pay the debt I am owing the loan company , so it will be a win win situation for me.