Mortgage: where to start. Conditions, procedure for registration, necessary documents, advice

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

"I want to get a mortgage! Where do I start?" - this question is asked by many who have decided on such a complex and responsible undertaking as buying an apartment on credit. Indeed, there are always a lot of questions, especially if all this is for the first time. How to pay, when, to whom? When will the documents be ready? When will the apartment become private property? Let's try to deal with all these nuances. So, where to start buying an apartment in a mortgage.

What is a mortgage

Before you figure out where to start buying a home with a mortgage, it would be nice to find out what it is. Of course, most of the population has known it for a long time and firsthand, but there are probably those who are not too savvy in the matter.

So, a mortgage is a form of collateral. There is a debtor - a person who wants to buy real estate, but he does not have enough money. There is a creditor - a bank that subsidizes the debtor for this event. There is an apartment - for which money is required.

The bank issues the necessary amount, and the debtor undertakes to return it, of course, with interest. All the time he pays off the debt, the housing is already in his possession, however, if for some reason he stopped paying the monthly amount, the bank is free to dispose of the apartment at its discretion: in particular, to sell it to get his funds back.

Thus, the apartment is pledged to the bank, despite the actual use of it by the owner. This is a guarantee that the bank will certainly return its finances.

A short digression into the history of mortgages

Where to start the conversation? Of course, with the origin of the definition. The very concept of "mortgage" is far from new - it has been around for many centuries. As early as the sixth century BC, the ancient Greeks operated with this term. It was used by them to designate the land of the debtor and visually represented a pillar that was dug in on this very land. It was his mortgage and called. It meant "pledge", "warning". There was also a sign on the pole saying that the owner of the territory was paying back the loan.

In our country, the first mortgage bank arose at the end of the eighteenth century. Later, however, the "shop" was closed, and everything started again after the collapse of the Soviet Union - in the nineties of the last century.

Mortgage features

Those who are interested in how to get a mortgage and where to start should first understand some of the key points of this type of loan. So, for example, they issue it, as a rule, for a long time (although notit is forbidden, of course, and earlier repayment of the debt - if the payer is able to do it), and the interest rate is usually lower than that of other types of credit.

There are several ways to pay off the debt, which you should also know about before thinking about where to start getting a mortgage:

1. You can give an amount every month that repays both the loan itself and the interest on it in equal parts (for example, the entire payment is 10 thousand, of which five go to pay the loan, and five go to pay interest).
2. You can also make a payment called differentiated. This is when at first most of the money goes to pay interest, and then vice versa. For example, if the payment is 20 thousand, then fifteen of it can go to interest, and only five to a loan. But gradually the ratio will change (when the interest is paid off more and more), and then, on the contrary, the minimum part of the payment will go to interest.

Mortgage: where to start?

So, if all the pros and cons are weighed and the decision is made, what should be done first? How to get started with a mortgage?

First of all, you should decide on the bank from which you want to receive finance. There are a lot of banks in our country today, despite the fact that only the leading ones are known to many - Sberbank, VTB and others like them. Several institutions of this kind should be carefully probed.

Why is this the first place to start a mortgage? Yes, because different banks have different conditions. Where-then the percentage will be lower, somewhere they will offer a preferential program, and somewhere else - something else. Therefore, it is important to find out a few offers, compare them and choose the one that suits you best.

Finance sing romances?

In general, the main thing, where to start taking a mortgage, is to achieve final certainty with the financial aspects:

• with the amount you would like to borrow;
• with the part of the funds that can be paid as a down payment.

In different banks, the percentage that goes towards paying the down payment is also different, although the differences are not very colossal. Somewhere it is ten percent of the total amount (but it should be noted right away that there are a minority of such banks), and somewhere - fifteen. True, most often, we are talking about twenty percent or more (it can be lower only under certain conditions - for example, there are benefits for young teachers or for young families).

Understanding how much you can deposit yourself, you can calculate the required loan amount. That is why all this is an important step in the issue of an apartment in a mortgage: where to start its registration.

The period for which the mortgage will be calculated is also quite a significant point in the issue under consideration. The amount that will need to be repaid monthly directly depends on the number of years.

As a rule, rarely does anyone take a mortgage for five years - only those who are really confident in their abilities and are ready to give serious money every thirty days. Usually creditissued for ten, fifteen and even twenty years. However, here you need to remember: the longer the mortgage is paid, the more interest is given. Thus, if you borrowed two million from a bank, you need to be prepared for the fact that you will have to return all four.

If you have any questions

Questions when obtaining a mortgage - where to start and how to get it right - are far from uncommon. They are found in every second applicant (if not every first). Therefore, it is quite appropriate and advisable to ask for help and/or advice from a mortgage specialist. This can be done both in the bank already selected, or simply by going to any convenient one where there is a similar consultant. He will answer all questions and clarify the necessary information. At the very least, it will make something that has been very vague until now more clear.

Required documents

Among other things, you also need to collect documents in order to apply for a mortgage. Where to start here:

1. First of all, you need to make photocopies of your passport and insurance certificate (green plastic paper).
2. Order a certificate of income at work (as a rule, this is 2-personal income tax).
3. Men may also need a military ID and a copy.
4. In addition, you will need a document on education, a copy of the employment contract.
5. If a person was or is married, you will need a certificate of it or its termination.
6. If there are children, it will be necessary to attach copies of the birth certificate of offspring to the application.

In the event that any other documents are suddenly needed, in addition to the above list, the consultant at the bank must certainly inform about it.

Yes, by the way, each applicant is assigned his own consultant, who will work with him in the future and suggest all the steps for obtaining an apartment in a mortgage: where to start and what to do next.

Follow-up

We learned and discussed how to start getting a mortgage. What to do next, after all these steps? Yes, everything is simple: apply.

Previously, this could only be done in person, coming to the selected bank, with live communication with a specialist. Today, in the modern age of technology, such a procedure is also available in electronic form. In this case, you don't have to go anywhere. You just need to sit in front of the monitor, scan all your documents, fill out an application, indicating all the necessary information about yourself, attach the resulting scans to it and click the "send" button.

Consideration is carried out quite quickly - within just a few hours, some answer will definitely come. On the site, by the way, on the user's personal page, all processes occurring with this request will be displayed. Whether processing is in progress, denied, approved - all this can be seen online.

If you were denied a mortgage

An important point: it may happen that the application will be refused (all reasons must be explained). There can be a lot of reasons for refusal:

• incorrectly filledfields;
• poorly readable scans;
• lack of any necessary document and so on.

All these problems are solvable. And after they are eliminated, you need to send the application again and wait again.

Among the reasons for refusal may also be the case when the bank doubts the person's ability to repay the loan. It may seem to him that the applicant's income is too low to take out a loan. Then the client will also need to issue a guarantor, that is, a co-borrower. In other words, a person who will vouch for the solvency of the sufferer to own real estate, and from whom the bank will be able to take the money due to him in the event that the applicant himself, for any reason, turns out to be financially insolvent.

When applying for a guarantor, you will also need to indicate all the necessary information about him, in particular, provide data on education, a certificate of income, and the like.

Is there a difference in banks?

People often ask if there is a difference in mortgage processing in different banks. For example, at VTB, at Sberbank or at Rosselkhozbank… And if, for example, you apply for a mortgage at Sberbank, where do you start?

Actually, there is no difference. You will need all the same documents, you will have to go through all the same procedures. Some small details may differ. If something goes wrong, a mortgage specialist will definitely tell you about it. Where to start correcting the existing shortcomings, he will also certainly prompt and advise. By and large,the applicant does not need to worry about anything at all - for this there is a consultant. When everything is correctly framed, it remains only to wait for a decision. And then rejoice at the positive answer and rush to conclude an agreement for an apartment!

Some tips to help new debtors

To make things easier, loan officers usually give some advice. Here are a few:

1. You need to remain a sane person and soberly assess your resources. According to experts, the loan should be such that every month you part with no more than thirty percent of the family budget - otherwise it will hurt your pocket.
2. Individuals prefer to take out a mortgage not in rubles, but in another currency, in order to be more economical. This is not a good idea, because it may be more economical at first, but you never know what will happen to the course in five minutes. And if it suddenly jumps, those who want to save money will have to be tight.
3. Be sure to read all documents carefully before signing them. This rule needs to be literally learned by heart! And special attention should be paid to everything that is written in small print. This also includes the need to ask all questions at once and clarify all incomprehensible points.
4. Another recommendation, and this was also mentioned earlier, is the advice not to get hung up on only one bank, but to study the offers of several financial institutions in advance. Carefully weigh everything, think it over, perhaps discusswith anyone else and only then make a decision. Often, the problem of many is that people go to a bank only because they heard that it was good there from their acquaintances, who once, a few years ago, took loans there. Unfortunately, this is not an indicator, and one can face great disappointments. And the train, as they say, has already left. By the way, when fluctuating between a large bank with a good "name" and a long history and a small one, a newcomer to the market, you should always make a choice in favor of the first one.
5. You should not immediately strive to get "from rags to riches", in other words, aim at multi-room apartments. Less is better!
6. It is best to take a loan for the shortest possible period - then the overpayment will be less.
7. You should always try to have money "in reserve", that is, live in such a way that there are funds to pay a mortgage for a couple of months in advance. Experts consider it ideal when there is always money to pay three months in advance.
8. Some people live with the hope that the bank that gave them the loan will suddenly go bankrupt, and then their debt will self-destruct. This is not true. Yes, indeed, this happens from time to time, banks declare themselves bankrupt. However, even in this case, they have a legal successor, that is, the one to whom everything passes "by inheritance" - including mortgage debts. Therefore, you still have to return what you have taken. Even if not to the one from whom they took it.

Something about mortgages

Finally some interesting facts:

• In the firstcentury BC Ancient Rome defeated Greece. Along with many other trophies, mortgages also came to the conquerors. The ancient Roman loan was terribly profitable: it was issued at only five percent per annum.
• In Russia of the eighteenth-nineteenth centuries, a loan could be obtained by mortgaging your estate (we are talking about landowners, of course, the peasants had nothing to mortgage).
• Mortgages disappeared in Russia with the rise of the Bolsheviks and the emergence of the Soviet Union.
• The most profitable place to take a mortgage is in France: you only need to repay money there at three percent per annum!
• The most expensive real estate is in Switzerland (and also in London and Monte Carlo), but mortgages in this country are given for up to a hundred years (in Russia, for comparison, the maximum is for thirty years).

• Nine years ago, there were more home purchases in a year in the United States than marriages.
• There is an interesting tradition among the Scots: when they pay off their mortgage debt in full, they paint the door of their house red.
• Americans also have a similar tradition. Only they do not paint the door, they hang a flying eagle above it - a symbol of freedom.
• Let's keep talking about US residents: only thirty percent of them live without a mortgage.
• Average mortgage payment worldwide is six percent per annum.

The article highlights the most important nuances that answer questions about how to get a mortgage and where to start this important procedure.