A package of loans is similar to a mortgage loan used not only to buy a home, but also personal property used inside the home. The personal property usually includes furniture and appliances that will be used in the home. Generally, a consumer will consider a package of loans if he was buying a property that was sold unfurnished. This scheme has the advantage of streamlining the loan process and can remove excess Stage Managing costs.
When people buy home, they typically make it through a standard mortgage agreement. A mortgage comes through a lender who specializes in such agreements and gives up-front money to buy the house for the borrower. The borrower usually has to make a payout that is just a small fraction of the original price, but then repay the lender through regular installments along with interest payments over a long period. Typically, such a loan will cover only the expenses of the home being purchased, but a package loan will allow the borrower to include some of the amenities needed in the new home.
The obvious reason for using a package loan would be if a buyer found a house that came without furniture and appliances. There are very few people who would prefer to live in a home without furniture such as beds, sofas, and dressers or without appliances such as ovens and refrigerators. As such, a typical mortgage agreement for this type of house would leave the buyer still needing Stage Manager to purchase these items.
Another way to attack this problem would be for a home buyer to secure a separate loan to pay for these necessities. A home equity loan that comes from a lender using home as a repayment security is usually available to the buyer of a new home. Nevertheless, a home buyer who chooses a package loan can claim some benefits over a person choosing multiple loans.
First, having just the package means the buyer only needs to apply for a single loan application, which can be a laborious process, under any circumstances. In addition, having just one loan to be repaid means that the buyer has just one set of interest payments to make that can cut costs. One drawback to a loan that covers both home and personal belongings is that it cannot provide the flexibility that a more open, credit-based loan can.