What is a mortgage and how to get one? Documents, down payment, interest, repayment of a mortgage loan

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

In today's realities of life, when the population of the planet is steadily growing, one of the most pressing is the housing issue. It is no secret that not every family, especially a young one, can afford to purchase their own housing, so more and more people are interested in what a mortgage is and how to get it. What are the advantages of this type of lending and is the game worth the candle?

The essence of the mortgage is that if you do not have good relatives who can lend money to buy a home for free, and you really want to have your own apartment, you can contact the bank and get the necessary amount. However, this type of loan is somewhat different from the usual consumer loan, to which we are already accustomed. What exactly - we will figure it out.

What is a mortgage and how to get one without problems

First of all, you need to understand that a mortgage loan isa targeted loan for the purchase of a specific property, and unlike a consumer loan, you will not be able to manage the money at your own discretion. In addition, in this case, the acquired object itself most often becomes the collateral - an apartment, a shop, a production facility. Therefore, it can be argued that the pledge of real estate to secure obligations to creditors is a mortgage. Banks, by the way, accept not only housing - a car, a yacht, a land plot can be a pledge. However, a feature of this type of lending is that the object acquired in this way becomes the property of the borrower immediately from the moment of purchase.

In Russia, the most common variant of this type of lending is a mortgage on housing. Moreover, as a rule, it is the apartment being purchased that is given as collateral to the bank, although, as an option, existing real estate can also be pledged. Almost all banks offer this type of service - Sberbank, Gazprombank, Alfa-Bank, VTB. A mortgage is always beneficial for any credit institution, because even if the borrower does not have the funds to pay off the debt, the bank will still have the collateral. That is why the latter willingly issue such loans, vying with each other offering "favorable" conditions.

Who will be given a loan and what is needed for this

In order for an apartment in a mortgage to become a reality, you will have to "sweat" enough, collecting the necessary package of documents. But we will talk about it a little lower, but now let's make someaverage portrait of a potential client capable of obtaining a mortgage loan:

1. First of all, age - the ideal range is from 23 to 65 years old.
2. Reliability level - you will need an impeccable credit history. If you do not have one, then before applying for a large loan, take a couple of consumer loans and carefully pay them off. Of course, a consumer loan is not as big as a mortgage, you will pay a much smaller installment, but having two or three loans paid on time will have a very positive effect on your image in the eyes of the bank.
3. Working experience - more than two years, and at the last place of work - at least 6 months.
4. Having enough "white" income to pay the monthly payment.
5. And, of course, you have to collect a huge list of documents, and the more serious the bank, the more papers, certificates and receipts you will be asked for.

Of course, the requirements described above are a generalized version, slightly different indicators can be found in brochures. For example, some banks on the pages of their prospectuses declare that they are ready to issue mortgage loans to persons over 18 years of age. Or another option: supposedly for a positive answer, you do not need a certificate of income. So, you know: most often this is just a publicity stunt. Clients who know from their own experience what a mortgage is and how to get it, say: if you do not meet the above requirements, you will not be given a loan for an apartment. And who is guaranteed to count on a positive response?

So, you are more likely to get a loan if:

• you have at least 20% of the cost of the purchased housing for the down payment;
• your official salary is at least twice your monthly payment;
• mortgage is issued for an apartment, not for a land plot or a private house;
• all able-bodied family members have official employment with a “white” salary;
• there is another property that already belongs to you by right of ownership (mortgage and it is also not required);
• you have no outstanding loans or other debt obligations;
• you are not a guarantor for loans from relatives or friends;
• work experience at the last job is more than 2-3 years;
• you can provide one or two solvent guarantors (required quite often, but not always).

Documents

So, you have decided that the only way to improve your living conditions is a mortgage. Banks will require from you an impressive package of documents. Let's dwell on it in more detail.

The generalized list looks like this:

• bank questionnaire;
• mortgage application - sometimes you can apply for it online by visiting the official website of the institution;
• photocopy of a civil passport or a document replacing it;
• copy of state pension insurance certificate;
• certificate (copy) of tax registration in the Russian Federation (TIN);
• men of military age alsoa copy of the military ID will be required;
• photocopies of education documents - diplomas, certificates, etc.;
• copies of certificates of marriage/divorce, birth of children;
• marriage contract (copy), if any;
• photocopy of work book (all pages) with identification record of the employer;
• any documents confirming the size and source of your income - personal income tax form 2, bank statements, receipts for alimony or regular financial assistance, etc.

In some banks, these documents are sufficient, but most often a mortgage loan requires a much larger number of papers. For example, you will most likely need to prepare:

• form 9 - certificate of registration at the place of permanent residence;
• photocopies of civil passports of all persons living with you, as well as immediate relatives (parents, children, spouses), regardless of their place of permanent residence;
• certificate of the amount of the pension and a copy of the pension certificate for non-working relatives of the appropriate age;
• copies of death certificates of all deceased immediate family members - spouses, parents or children.

And more documents

If you have any expensive property, then you will need title documents confirming ownership - bills of sale, gift, privatization certificates for a summer house, apartment, car, etc. You will also need a certificate in form 7 characterizingparameters of your residential/non-residential premises.

As soon as you own shares, bonds, etc., you will have to provide an extract from the register of securities holders.

Mortgage for housing is a responsible business. So be sure to provide documents confirming your reliability - credit history, copies of receipts for timely payment of telephone and utility bills, rent for the last few months, and preferably for a year or two.

If you have bank accounts - card, current, deposit, credit, demand, etc. - you will need documents confirming their existence.

In addition to everything, in order to apply for a mortgage loan, be sure to stock up on a certificate confirming that you are not registered with a psycho-neurological or narcological dispensary.

When contacting the bank, you will need not only copies, but also originals of the above papers, and if you have a co-borrower, he will have to prepare the same package of documents.

And documents again

Additional documents may be needed for those who work "for themselves" and have their own business. These can be copies of constituent documents, accounting statements showing profit / loss for the last few years, staffing, copies of major contracts, balance sheets - in general, any documents that can confirm the financial stability of your company and its ability to develop dynamically.

If you are an individual entrepreneur without a legal entity, then the bank is likely towill ask for:

• certificate of registration;
• receipts for taxes and contributions to various funds;
• copies of bank statements for the last few years;
• book of expenses and income (if any);
• photocopies of lease agreements for premises and other documents confirming your stability and solvency;

As you can see, an apartment in a mortgage is a rather troublesome business. After all the necessary documents have been submitted, it is necessary to wait for the bank's decision to issue a mortgage. Usually, the review period can take from a day to several weeks, but some banks offer an “express mortgage” service, when a decision can be made in two to three hours. Once approved, you can start looking for an apartment.

How to choose a bank: the best mortgage loans

If a long list of required documents did not frighten you, and you only strengthened your decision to take a home on credit, let's take a closer look at the question of how to choose the most advantageous offer. It is clear that paying off a mortgage is a long and rather expensive process, and, as you know, no one wants to overpay. What to look for when choosing a credit institution?

1. First of all, you should carefully study the programs offered by banks. At the same time, try to pay attention to institutions that have been operating on the market for more than a year and have a proven reputation.
2. If you already have a card (any)any of the banks, and you are generally satisfied with its work, then first of all turn your attention to this particular enterprise. The fact is that usually many financial institutions offer regular customers special, more favorable lending conditions than people who apply to them for the first time.
3. Pay attention not only to the interest rate, but also to the likely number of one-time payments, the amount of which in the end can be quite large. Such "commissions" may be charged by the bank for issuing various certificates, insurance and other services.
4. Be sure to explore the possibility of early repayment of the loan. For example, in a bank like VTB, a mortgage can be repaid ahead of schedule without problems, while other credit organizations in this case oblige the client to pay some additional fines and pen alties. This may also affect your choice.
5. Almost every banking institution has its own website where you can easily find a mortgage calculator. This is quite convenient: by filling in the appropriate fields, you can roughly calculate how much you will have to pay monthly. Compare these figures by browsing the pages of several banks and determine the most advantageous offer.

In order not to get confused with a large number of offers, you can create a small table for yourself, where the columns will be credit conditions, and the rows will be several banks offering mortgages. Be sure to use a mortgage calculator - it will greatly facilitate your calculations and help determine the total overpayment andmonthly payment amount.

Columns (criteria) can be:

• mortgage term;
• interest rate;
• monthly payment;
• 3rd party fees, one-time payments;
• need to verify income;
• early repayment option;
• amount of the initial mandatory contribution;
• pen alties for late monthly fees;
• promotional offers.

Of course, you can supplement the proposed list of criteria at your discretion. Do not rush to choose a bank with the lowest interest rate - perhaps all other conditions will not be so favorable. So evaluate all items in the complex.

Social mortgage loan

There is another point that you need to pay attention to when choosing a bank. The fact is that for some categories of citizens, the so-called social mortgage is provided - preferential lending aimed at providing housing to vulnerable segments of the population who are simply not able to purchase an apartment under the "commercial mortgage".

The main difference between this type of lending is the cost of one square meter of purchased housing. In order to take part in the program, it is necessary to write an application for the improvement of living conditions and become registered with the Administration at the place of residence. Your application will be reviewed and a decision will be made accordingly. One of the main criteria for such registration is compliance with the Decree of the Cabinet of Ministers of the Republic of Tajikistan No. 190, from which it follows that the norm for ensuring the generalhousing area per person is 18 m2.

Participants of the "Social Mortgage" program can be, for example, state employees. A loan can be issued at only 7% per annum and for a period of up to 28.5 years, and most often it does not even require a down payment.

However, not all banks work with this type of lending. The necessary information about where it can be issued, as well as whether you can apply for it, can be found in the city (district) administration. Most often there is a department responsible for housing policy.

Lending to a young family

If older people mostly received housing back in Soviet times, then mortgages for young families are practically the only way today to acquire their own housing and become independent. Fortunately, this type of lending is also supported by the state.

Each young family can take part in the federal program and apply for state subsidies to purchase their own housing. The normal area for a family of 2 is 42 square meters. Such a family can qualify for a subsidy of 35% of the cost of housing. If a young couple has children, then the housing norm is calculated as 18 m2 per person, and the amount of the subsidy increases to 40% of the cost of the apartment.

State mortgages for young people can be provided not only if they are married - "singles" can also qualify forconcessional loan. To this end, the practice of student construction teams, which are being formed in many universities, is being revived throughout the country. After a fighter of such a detachment has worked "for the good of the Motherland" one hundred and fifty shifts, he receives the right to apply for a mortgage on an apartment at cost. Thus, with a little work, you can buy a home 2-3 times cheaper than its market value.

Mortgages for military personnel

The nationwide program "Military Mortgage" is another option to support the population. The program is aimed at improving the living conditions of servicemen through the accumulative mortgage system. It all depends on the military rank of the participant and the date of the conclusion of the first contract for service.

The essence of the "Military Mortgage" program is that every year the state transfers a certain amount to the individual account of each serviceman, the amount of which is regularly reviewed by the Government of the Russian Federation depending on the level of inflation and other indicators. Over time, the accumulated amount can be used as a down payment on a mortgage.

Pros and cons

Now that you have at least in general terms understood what a mortgage is and how to get it, it is simply impossible not to dwell on the main advantages and disadvantages of this type of lending.

Of course, the main advantage of a mortgage is that you can get your own apartment right now, and not save up for it for many years, “knocking around the corners”. Since the loan is issued for many years, thenthe monthly payment is usually not too high, and the average Russian is quite capable of repaying it.

However, with all the "rosiness" of the prospects, one should not forget about the shortcomings, among which, first of all, one should name a huge overpayment on interest, sometimes reaching more than 100%. In addition, almost every mortgage agreement necessarily contains third-party costs - for maintaining a loan account, for considering an application, various insurances, commissions, and so on. All this together can reach 8-10% of the cost of the down payment. And, of course, a huge list of documents, although this is not surprising, because the bank entrusts you with considerable funds, and for a very long time.