The housing loan can be repaid within ten days. However, it may take longer to gather the necessary documents. When taking out a loan, ask about the number of repayments and other fees associated with the mortgage.
They go in the thousands. To open an account, arrange insurance, but mainly go through many different negotiations, all this awaits you when arranging a loan or mortgage. This article will describe in detail all the activities you have to go through.
1. Calculate if they will lend to you and for how much
Before you start looking for housing, find out if at all and how much the bank will lend you. Different repayment periods and interest fixing, including the amount of the installment, can also be modeled.
2. Compare individual offers on the market
Most banks, building societies, and brokerage companies have a calculator on their website, according to which you can prepare an approximate calculation of how much the mortgage will cost you.
The advantage of a broker is that he submits bids from several banks, he is able to handle most of the administration, free of charge. It often offers lower interest rates than the bank.
3. Don’t forget to ask about extra fees
Calculate how high your mortgage payments will be. Don’t just rely on knowing the interest rate and repayment amount, but also on fees. Some banks do not want anything to arrange a mortgage, others demand an amount of up to 0.8 percent of the borrowed amount. Also count on a monthly loan account fee of 5 to 7 USD, with most banks you also need to have a current account.
Also, ask about penalties for early loan repayment. You can manage to negotiate some fees at the bank, or even get them forgiven.
You will have to ensure the property you guarantee for the loan, in some cases, you will also have to insure yourself. However, you only need to set up risk insurance, do not unnecessarily force a more expensive investment.
4. Write a loan application
If you obtain all the necessary documents, you can write a mortgage application. It directly specifies how many years you want to repay, how long the mortgage interest rate is to be fixed, and other conditions.
Who uses the services of a broker, fills in the application with him. The broker then submits the mortgage application and the documents for it to the bank and monitors the approval of the mortgage.
What documents do you need to arrange a mortgage?
Proof of income and expenses
- Employees go to the payroll office and have their income confirmed on the bank from where you are
- they will take out a mortgage.
- Account statements (for three months), where the payment goes. The bank can check if it goes to the account
- the amount you have on the confirmation from the employer.
- Entrepreneurs must submit tax returns for the last year or two to apply for a mortgage.
- A copy of all credit leasing or insurance contracts.
Documents for the purchased real estate
- Acquisition title to real estate from the seller.
- Purchase agreement or agreement on a future purchase agreement.
- Extract from the title deed and an image from the cadastral map.
You will need the original stamped by the cadastral office. When you arrange a mortgage through
broker, he goes to the cadastre.
Real estate appraisal
Each bank has different requirements, somewhere you get a list of contract appraisers and an estimate with it equip yourself, enter a request elsewhere and provide access to the property.
Keep in mind that the purchase price is not always equal to the estimated price. If you have a broker, he will take care of the estimate. The price of an expert opinion ranges from 100 to 200 USD, depending on whether it is an apartment or a house. For new buildings, the estimate is usually provided by the developer, so clients do not have to pay for it.
5. Study it carefully before signing the contract
If the bank approves the mortgage, it usually takes a week, prepares the loan agreement, and invites you to accept it signing. Study the contract carefully.
Ask everything you don’t understand. You can still edit something at this stage. After signing, you will pay for each change and the price lists of the banks are ruthless. For example, you will pay 200 USD for a change.
6. Go to the cadastral office
Simultaneously with the loan agreement, the bank will prepare the documents for the mortgage of the real estate. At this point, however, it will be signed by the seller, as the property is still owned by him. Don’t forget to explain this step with him when signing the purchase contract.
It often happens that at this stage the business gets stuck: the seller fuses, has no money yet, and has to mortgage the property. You place the deposit contract on the cadastre and the purchase contract the day after. Both deposits must have different dates.
At this time comes the time to arrange real estate insurance. The contract is binding in favor of the bank. Money from the insurance policy would be paid by the insurance company for the duration of the loan repayment Posted by Ivan Kudroč as Loan, Mortgage, Home loan, Home loan, Real estate loan, Home mortgage