If you have chosen the right option, then it’s time to go to the next stage of receiving money. For this you have to collect and fill out several documents.
The process of registration of the mortgage is as follows:
1. Collection of documents. This process can take a significant amount of time. Standard set includes:
- application form of the bank;
- copy of the borrower’s passport (s);
- documents on the pledge (technical passport of real estate, a certificate of value from the BTI, an extract from the house register, an extract from the Unified Register of Rights on Restrictions, an assessment of an independent expert);
- copy of employment record;
- reference 2-NDFL.
This list may vary for each bank. Many institutions require additional provision of:
- driver’s license;
- passport with travel notes abroad;
- pension insurance certificate;
- medical insurance certificate;
- certificate of education;
- marriage / divorce certificate (marriage contract);
- in the presence of children – their birth certificate;
- military card (for males).
2. Bank decision making. An application for a loan is considered by the bank from several days to several weeks. Each appeal is considered personally by a bank expert and passes through scoring (automatic data verification in order to calculate a credit rating). Based on your solvency, the bank will approve or reject the submitted application. If approved, the financial institution will issue an official response indicating the amount for which it is ready to lend you. After that you will have time (from 1 to 6 months) to make a final decision and sign documents.
3. Conclude a contract of sale. If you find a source of funding, you can contact the seller of real estate for the conclusion of the contract of sale.
4. Pay the down payment. In most cases, you need to make the first payment equal to 10% to 50% of the property value. If you do not have the necessary funds for this, then you can choose a mortgage program that does not require a down payment.
5. Insure. According to the law, it is necessary to insure the purchased property against its damage (fire, flooding, crash, etc.). For many banks, title insurance is required (housing status – issued to protect against fraudsters who can sell the same property to several buyers) and the life of the borrower. If you do not need additional insurance, you will have to find the appropriate bank offer – in most cases it will be more expensive.
6. Sign a contract with the bank. After eliminating all the formalities, you can enter into a loan agreement and a real estate pledge agreement. Within a few days after the signing of these documents, the bank will transfer the loan amount to the seller of real estate. The purchase transaction is subject to state registration. After that, the purchased property falls into your property with encumbrance. It will be removed after payment of the debt. Until this point, you can not sell, rent or exchange your property without the consent of the bank.
7. Pay on time. The conclusion of a mortgage contract is not as complicated as compared to the repayment period, which can reach several decades. By taking on obligations, you must comply with them in a disciplined way – to pay the loan on a monthly basis until a certain date, and in case of delinquency to pay fines and penalties.
Sravnit.ru advice: If you have financial difficulties during repayment or you want to improve credit conditions, you will have to refinance your mortgage , that is, take a new profitable loan with which to pay off the old one.