First installment on a mortgage: size, terms of payment

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In order to purchase housing, most people take loans from banks. But the bank does not provide this service for everyone. To get a loan, you need to have a good credit history, an official job, as well as a down payment on a mortgage. Usually this amount is measured in several hundred thousand rubles, so not everyone has it.

The value of the first installment

The down payment on the mortgage will be part of the cost of housing. The terms of its transfer will depend on the content of the contract of sale. But the funds must be transferred before obtaining a loan. Their transfer will be proof that the person is really solvent.

Why do I need a down payment on a mortgage? Most banks require citizens to have their own money in order to make an assessment, as well as to identify those who are insolvent. If they are identified, the financial institution will not allow the loan to be approved, since with mortgage loans, customers are given largesums of money. The presence of money in a person speaks of his thrift, the ability to pay the debt in the future, the desire to go towards his goal gradually. That is, such a person is considered more reliable, since he was able to accumulate a certain amount over a long period or was able to get money in another way, but manages it wisely.

Usually young couples need housing, but they do not have a down payment on a mortgage, and also do not have sufficient income. Therefore, not all young families can afford to buy an apartment or a house right away. They need to initially live with relatives or rent a house and save at the same time. This logic is not entirely correct, since the money that goes to rent an apartment could become a monthly mortgage payment.

Mortgage amount

Will personal funds be included in the total amount of the mortgage loan, which will become the down payment in the future? These funds will not be included in the loan amount, the borrower pays a certain percentage of the total cost of housing. The bank benefits from this, because if a person cannot continue to pay, then the lender returns all his money, and will also be able to cover all expenses and pen alties, interest. Regardless of how much a person has paid, he will be returned only what remains after payment of all existing expenses and interest. The amount returned is usually much less than the person spent.

Cash Share

There are many banks in Russia. Before taking out a loana certain institution, you need to check the conditions and choose the most advantageous for yourself.

The first installment on a mortgage in Sberbank will be 20% of the total cost of housing. For the military, the initial amount will be 15%. If a person wants or can provide only two basic documents, then the share of his personal funds should be 50%, regardless of which program the borrower chooses. For primary unfinished housing, the amount will be 15%. The amount for building a house will increase and will be equal to 25%. That is, the more reliable a person is, the more documents he can provide, the more loyal the borrower will be to him. And the client will be able to invest a smaller share of their personal money.

The down payment on a mortgage at Sberbank in many cases is 20%. But sometimes the institution holds various promotions, and the amount may decrease when additional documents are provided. You should always keep track of bank conditions in order to keep abreast of changes. You can also ask the consultant to notify you of the changes.

For the military, the Ministry of Defense becomes a guarantee, which concludes a contract with subordinates for a long time. Therefore, the bank has provided a minimum percentage for them. For clients who are unwilling or unable to provide employment and salary information, the financial institution will ask for half of the housing cost.

Sometimes banks provide loans without down payments, but the conditions for them are tough. So, for example, the lender can secure itself and provide a loan with a very high interest rate,which may also include the mandatory conclusion of insurance contracts, the inclusion of many additional commissions, as well as the setting of certain restrictions.

When studying various banking programs, one can identify a feature: the larger the contribution amount, the lower the interest rate. This is due to the fact that the lender in this case provides a smaller amount, and the situation becomes safer for him.

Large down payment

What is the down payment on a mortgage in Moscow (or any other city) should be in order to get the most favorable repayment terms? The larger the personal contribution of the borrower, the more favorable the loan terms, as there will be less:

• interest rate;
• mandatory percentage;
• insurance payments;
• monthly payment.

Having money

The minimum percentage of the first installment of the mortgage is determined by the bank. The stage of transferring funds to the home seller occurs without the intervention of financial institutions. That is, the buyer can transfer money against receipt, transfer it to the buyer's account, use bank cells. Before issuing a loan, the bank will require proof of solvency from the borrower.

In the real estate sale and purchase agreement, you must specify where the down payment will be sent. It is very important. Sometimes there may be more than one owner of the property, so it is necessary to indicate whetherpayment is made to each member individually or only to one person. If you need to pay for each owner, then you should write in the contract the amount of each person and the bank details where the funds will be sent.

If the bank does not require certain actions to transfer money to the cell, then the algorithm of actions will be standard (as when buying a home without a loan).

Transfer money

Mortgage with a down payment is carried out in the following way.

1. The down payment is the first installment of the total cost of the property. In case of refusal to complete the transaction, these funds must be returned in full to the failed buyer. But if the termination occurs at the initiative of the buyer, then the deposit may be lost. If the termination of the contract was carried out due to the desire of the seller, then he must return the funds in double the amount. The termination consideration option must be spelled out in the contract so that the buyer does not lose his money. Payment must be made at the time of preliminary drawing up and signing of the contract. It could be cash. After the seller has received the money, he puts the amount, signature and full surname, name, patronymic. Thus, he confirms the fact of receipt of payment. You can also pay through a bank using a bank transfer. The bank will issue confirmation of the operation. The paying person keeps the original, and the buyer is given a copy.
2. The second part of the payment is the amount of cashfunds equal to the difference between the down payment and the first part paid (that is, the advance). For example, you should clarify the first installment of the mortgage and calculate the minimum required amount of own funds. The first part of the payment must be determined in the agreement between the seller and the buyer. Usually this amount will be equal to the services of re altors. The remaining second part is the difference between the amount of the down payment and the funds already transferred to the seller. The transfer of money in the second stage must also have its confirmation. The fact of transfer can be carried out, as in the first method, with the help of an agreement and a cashless payment through a bank. But it is worth noting that the bank may additionally request a receipt from the seller that the second stage of the transfer of funds was carried out. This will confirm that the buyer has paid the down payment in full.
3. The bank's funds are transferred by the creditor himself. The transfer of funds will be carried out only after the buyer provides all the necessary documents for the transaction.

What could be the down payment

The amount of money is determined by the bank employee. If the mortgage down payment - mat. capital, then you need to make sure that a particular bank works with this type of funds. In most institutions, these savings are proof that a person has money. Usually, banks accept all necessary documents from the buyer and independently perform actions with the Pension Fund. The enumeration is done usingcashless payment. Today, almost all banks accept maternity capital as a down payment of a mortgage. This cash is helping many young families find their homes.

If the down payment is housing

Sometimes banks can accept existing property as money from a buyer. The percentage of the contribution from the total amount will depend on the assessment of a particular object and the conditions of the lender. In some cases, banks allow you to use your own housing for a certain period of time. This will be beneficial for a family that purchases an apartment in an unfinished house. Until the house is put into operation, buyers can live in their own.

The second loan is a down payment

Sometimes the situation develops in such a way that a person urgently needs to buy an apartment, but there is no money. Then there is the option of issuing two loan agreements at the same time. The first loan will go for the installment, and accordingly the second - the mortgage itself. Although this way out of the situation is extremely dangerous. In order to get two loans, you must have a constant and sufficient income so that you can repay them at the same time.

All banks have the same base. And the bank that has to issue a mortgage loan will immediately see that the funds were issued earlier. Lenders can approve both loans, but the buyer must understand whether he can pay both loans for a long time. Even the minimum amount of the down payment is large, as it is expressed in hundreds of thousands of rubles. But consumerThe loan is issued for a maximum of five years. Moreover, interest rates in any banks are always high. It is also mandatory for lenders to add a variety of insurances that will cost a significant amount of money.

Before deciding whether to take the first installment of a mortgage on an apartment, it is better to calculate the approximate payment in advance. To do this, you can ask a bank consultant to make an approximate calculation of the loan. By adding two payments, you can understand how much you will need to pay each month. And it will become clear whether this decision is acceptable. It is also worth noting that once a year you need to insure property. Insurance also requires a decent amount of money.

Mortgage without down payment

It's not easy to save a certain amount for a mortgage. Therefore, some banks offer to purchase a loan without a down payment. A mortgage without a down payment in Yekaterinburg or any other city allows many families to purchase housing:

• Banks provide an opportunity to purchase property for military personnel without a down payment.
• Persons registered to improve their living conditions can get mortgages under special government programs. The state helps and pays subsidies, which will be the down payment in the mortgage agreement. But usually this procedure takes a long time, since the queue is long, and the state has a certain limit.
• You can also get a loan without your own money, with the help of a guarantor with a good credit history and highincome level.

For example, in Yekaterinburg, mortgages without a down payment are common, as there are many special offers from lenders.

Resellers

Buying real estate on the secondary market has many advantages:

• Great choice, you can buy housing on your own and desire.
• You can move in and live in the house immediately after the transaction occurs. No need to wait until the house is approved and commissioned.
• Usually, when buying apartments on the secondary market, they are located in places with developed infrastructure.
• There is no danger of being deceived by developers and being left without housing at all.
• Usually, the interest rate for this housing is lowered, as the lender receives an existing apartment as collateral. That is, the purchase of an already built house is reliable for the bank. And with an unfinished house, the bank takes the risk, as developers can cheat.

And yet, buying an apartment on the secondary market carries many dangers. For example, not always a legal check of documents can give an accurate answer about the number of owners of an apartment. Overlappings, as well as communications, may be old, and after the move, everything will have to be repaired, respectively, this will be an additional waste of money. Implementation of illegal redevelopment can be a problem when buying a home. Not always sellers of apartments can be honest conscientious people. Therefore, before buying an apartment, you must also do a check yourself.

The minimum down payment on a mortgage on secondary housing is usually 20% in banks. Institutions that have been operating in the financial market for a long time and managed to gain a sufficient number of clients will not give loans with a small contribution. Usually, in order to reduce the contribution, it is necessary to provide a lot of documents. There are banks that are relatively new on the market. They may underestimate the amount of the down payment, as well as reduce interest rates in order to increase the flow of customers. Therefore, before taking a loan, you need to look at the conditions of many banks and choose the most profitable program for yourself.