Who will get a mortgage on an apartment

The issue of obtaining a mortgage has several aspects: the presence of relevant qualities valuable for the bank in the person applying for the mortgage and property to secure the pledge, as well as the registration procedure. Only when they are considered together can you fully get an answer to the question of obtaining a mortgage for the purchase of housing.

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Banking institutions are very picky about each borrower on a mortgage loan (of course, there are well-known "double loans", but if you evaluate the amount of interest on them, then this loan product simply disgusts you).

But we are considering in the issue of obtaining a mortgage for housing only how to do it for our own benefit. For these purposes, you need to meet certain qualities. For example, banking institutions have outlined certain age limits (minimum and maximum) for the possibility of obtaining a loan, as well as limits for full payment.

Mostly, in receiving funds from the bank, the beginning of the age range corresponds to 18-21 years, and the retirement age or a little more closes the framework.

income stability

Perhaps the most significant evaluation criterion used to screen out potential borrowers is the stability of income, which will be sufficient to be able to pay constant, fixed amounts.

Banks evaluate such a concept as stability based on the following:

• Employment based on an employment agreement;
• The presence of higher education;
• A period of employment in one place lasting from 1 to 3 years (those of the borrowers who have employment records changing every 4 months may not count on any trust);
• Married, and one of the spouses must be employed.

If we talk about a sufficient level of wages to be able to repay the loan amount, then here the amount of the monthly salary should be at least 50 percent higher than the amount of the loan payment. Some banks are willing to estimate the total family income when it comes to newlyweds or parents.

Positive credit history

Assessing the history of loans, banking institutions look not only at the presence of debts under existing agreements, but also how timely payments were made on them. If such a story is completely absent, then the bank will look at you as a “dark horse”.

If past non-payment of overdue debts immediately cross out your candidacy, then the presence of minor delays can still be justified. To this end, the borrower must provide evidence that these actions are not his fault (for example, this may be a sudden reduction in staff or a long illness).

Liquid Mortgage Housing

When choosing a collateral object, banks prefer apartments or residential buildings with vacant plots in front of them. Options with apartments are immediately cut off if they are located in an old, emergency building, or belong to historical monuments, etc.

Liquidity refers to an estimate of the minimum time it will take to sell the housing in question. This assessment uses techniques that establish the positive qualities of housing, and, therefore, the percentage of occurrence of individual or mass demand for it.

Of course, prices for an apartment or a building play a significant role. These are determined by a separately licensed appraiser. When preparing a valuation report for collateral purposes, it will contain indicators not only of the market price, but also of the collateral price. The latter is taken into account by the bank when calculating the loan amount.

The market price is calculated, mainly using a comparative methodology (comparison of prices for similar objects) at the date of signing the loan agreement. In the mortgage price, the appraiser takes into account the level of depreciation of the object under study during the mortgage period and the risks.

Who does not get a mortgage

A high probability of being denied a loan appears if the client's credit history is dotted with defaults and delays, and also if the income part of the person consists of "hidden" (without paying the tax part) sources. Also, most banks have a list of professions of unwanted clients.

Banking institutions are extremely cautious towards employees of such professions:

• Any seasonal professions, as well as those with piecework pay for work. This includes various agents (related to real estate, insurance, etc.), freelancers, representatives of creative professions who perform work on a fee;
• Professions where there are risks for workers (this includes security officials, air pilots, stuntmen, etc.);
• Military (should not be identified with "military mortgage");
• IP and businessmen.

The efforts of a potential borrower will be empty if his candidacy is included in the stop list. It is a kind of special software, a database containing information about the list of persons undesirable for the bank.

This immediately includes clients whose credit history is pretty tarnished, whose accounts are frozen, who have a dark and / or criminal past. It is possible to get into this list by mistake, but after that it is very difficult to get you removed from it.

What do you need to get a mortgage?

You need to start by deciding on your real possibilities and the requirements put forward for housing. This is necessary for the most accurate selection of a banking institution, where you will be accepted as a desirable borrower, and the apartment you are applying for as an attractive mortgage item.

Having decided on the bank, we find out the full terms of credit processing, since in most cases all consultants and advertising brochures miss some important nuances about additional costs.

For example, that the life of the borrower must be insured, commission payments for making transfers, opening accounts, bank cards, and so on. If you are not disappointed with the basic conditions “with many of their nuances”, then feel free to apply for registration.

Loan Application

The application can be filled out at the main office of the institution. However, make sure you have all the necessary documentation (copies) in advance.

Basically, this list is standardly represented by the following documents:

• Necessary to confirm the identity of the borrower. These can be: passports, certificates confirming the birth of children, work books;
• Confirming the level of income that the borrower has (this can be a 2-NDFL certificate or according to a banking form);
• Confirming the right of ownership and displaying technical descriptions of collateral objects.

The results of the application are drawn up by the credit committee and announced to the applicant within a couple of days or weeks. This document will display not only the content of the decision to issue or refuse to provide a loan, but also a list of the terms of the loan agreement, and the period of validity of the decision.

If the bank refused the client, then he is not obliged to explain the reasons for his decision to the latter. If the decision is positive, then there is no need to shelve it, since it is valid only from 3 to 6 months.

How to choose and arrange housing

Mortgage amounts, as a source of finance, can slightly reduce the choice. Not every home seller will agree to a mortgage. If we are talking about large companies (developers), then the latter cooperate only with specific banking institutions.

Also in the opposite direction, not every institution will agree to issue funds for the purchase of housing from a dubious developer.

Having settled all the nuances with the seller, you are engaged in the execution of a loan agreement, which will oblige the borrower within a couple of weeks from the moment of signing to complete the transfer of the purchased housing under bank collateral.

Question of insurance

Once you have purchased a home and received all title deeds, you can begin to meet one of the requirements of the Mortgage Law by insuring your home against the risk of loss or damage.

The insurance company evaluates the object for its part - it determines the degree of possibility of occurrence of insured events. When all the smallest details are clarified about housing, the insurance company can either increase the amount of the insurance premium, or even refuse to insure this property.

For example, if facts of frequent “flooding” by neighbors on the floor above are revealed, insurance premiums will increase. Also, an increased tariff rate is provided for houses with wooden floors, new buildings, as well as dilapidated and old buildings.

According to the insurance contract, the beneficiary in this case is a banking institution, since the property is collateral. In addition to the specified housing insurance, the borrower, depending on the degree of his perseverance, is offered additional insurance for his own life and ownership of the collateral.