The differences between asking for a home mortgage or a personal loan are very noticeable. It is better to analyze separately , to make a good decision regarding convenience. The request must be made according to the needs and financial solvency of the client.
These are circumstances or times when extra or additional money is needed that we do not have and that is important. Well, you need to make a business, a striking investment or pay other debts . Otherwise, if not for some special reason it is better not to apply for the loan.
Mortgage loan application
To refer to the mortgage for a loan is to reaffirm that this is a legal right as collateral for the debt. When a type of loan like this is made, it is usually made for the purchase of new or used housing, purchase of a lot or other real estate. And why not, even to pay other debts, taking into account if there are economic benefits.
On the interest side, it can be mentioned that they are lower than the personal loan, because they have long terms. This is due to the different conditions contained in a mortgage loan. What can be highlighted in this type of loan is the advantage that the creditor has over the debtor:
It is answered by the debt directly with the property placed under guarantee , and in the event of default of payments of the debt, the creditor is the first beneficiary. It is he who has the right to receive the money for sale of the same to cover the debt.
Personal Loan Application
When requesting a personal loan, the guarantee is made with the direct signature of the applicant, but additional guarantees may be required. Because of not having a property as a guarantee. Since, your destination is for some particular consumption expenses: travel, study, whims, in very few cases it is used for a reciprocal investment.
Under the conditions of approval the personal loan, the interest is higher than the mortgage loan . The defined terms are shorter, generally up to 5 years. By having conditions that can be met with less documentation, approval can be faster.