Often people are faced with situations that require quick solutions. Sometimes they are not easy, but anyone who knows how to take risks wisely will win. The most important problem of today's realities is the lack of money. For business, this is fraught with consequences, breach of obligations, loss of partners, failure of contracts. For people, this is disappointment, loss of hope. To take a loan is one of the solutions, sometimes it is the only true one.
A loan secured by real estate is a reliable convenient but risky way to quickly get money to start a new business, expand production, modernize equipment, and attract working capital. For people, this is an opportunity to improve living conditions, help themselves or relatives in a critical situation, get a quality education. Everyone has their own motive, but those who apply for a loan secured by real estate should consider the benefits and risks.
We are trying to plan everything for many years to come. It doesn’t matter whether it is a company or an ordinary person, everyone has an action plan. But our plans do not always come true, and we don’t like what is happening. But it happens on the contrary that everything goes according to the plan. If this is associated with taking a loan, then it must be mentioned that there are two types: urgent and non-urgent.
Urgent and non-urgent loans
A loan secured by real estate is quite easy to obtain during the day, such a loan is called urgent. The lender will help you collect the necessary documents, quickly check you, and by the end of the day you will have the money. But here lies the main risk, for both sides. By issuing a quick loan, the company will be reinsured in all possible ways. With a high probability the property will be estimated inaccurately, below its market value, you will be provided with high interest, the company may also be unscrupulous, there may still be many nuances.
A non-term loan secured by real estate can be issued by any bank within a week. A thorough check is carried out, you will be asked to bring a lot of references from various organizations. Paperwork will not be quick and will go through several stages of verification. But you can count on a normal assessment of the property, the interest rate is lower than for an urgent loan, you can choose any credit institution.
Target and non-target loans
The point that you will definitely meet in the contract is the indication of purpose. If you indicate the purpose, then this is a target loan, but if there is a purpose not specified, then this is a non-target loan. This item will affect the loan repayment period, interest rate and, most importantly, the opportunity to obtain approval from the bank of your candidacy.
Any company can obtain a loan secured by commercial real estate; money can be used to diversify production, modernize production, purchase equipment, purchase raw materials, and repair premises. At the same time, the bank will require guarantees, which can be made by contracts with suppliers, contracts with construction companies. All these documents will affect the decision of the bank. Banks are not willing to give out improper loans, but in the presence of collateral real estate, a variety of options are possible.
The same rules exist for individuals. A targeted private loan can be taken for training, buying an apartment, a car. Mortgage is also one of the options for this type of lending. This is a loan secured by real estate to be acquired. In fact, the bank gives money to purchase an apartment, and after its purchase, it becomes collateral.
Limitations
There are certain restrictions. The bank can issue loans of this type, starting with the minimum amount, say one million rubles. Lending lines are limited to the bank, each organization sets its own time frame. Repaying the loan ahead of schedule will cost a decent amount, which can be a certain percentage of the contract amount or beat a fixed amount. There are also age restrictions. Making a loan secured by real estate it is impossible to sell real estate before repayment of the loan, the bank will also require to insure this premises. Individual entrepreneurs very often encounter the difficulty of obtaining a loan.
Stages of obtaining a loan
1. Filing an application with a bank
The bank will verify your identity and credit history. The Bank will make its decision based on these data. After approval of your candidacy, the bank will require to collect documents.
2. Collection of documents
When submitting an application, the bank will require a set of documents from you. Each bank makes its own adjustments to this set. But you will definitely need to provide:
- marriage certificate
- a tax certificate, as well as you will be asked to provide an identification code
- certificate of utility debts
- certificate from BTI
- passport of the property owner
- title documents
- statements of income from the place of main work
3. Property Valuation
Having received the necessary documents, the bank is engaged in their verification. A bank employee inspects the premises and evaluates them.
4. Conclusion of a contract
After checks and approvals, a contract is concluded. After the conclusion of the contract, you will receive money in cash or they can be transferred to a personal account.
5. Monitoring compliance with credit obligations
Unsuccessful experience
First of all, choosing the organization of the lender, learn more about it, check its legality.
Before concluding an agreement, consult a lawyer who specializes in credit matters. Very often fraudulent credit organizations can offer contracts that are beneficial only to them. Turning to a lawyer will help to protect yourself in the future. He will check the organization and contract.
Please note that the contract must contain full information about the loan, the amount of payments. All financial calculations should be detailed. Do not sign a contract that you do not understand. Do not believe verbal promises, they can be forgotten; everything must be reflected in the contract.
There are precedents when a conscientious borrower repays the amount of debt at the end of the line. Due to the long transfer of funds in the banking system, they get to the right account with a delay.
Check if the entire loan amount has been repaid or if a penny remains. The bank may be silent about the balance. It turns out that you have overdue several payments, you will be charged a fine. The Bank deliberately goes to silence the data.
Unscrupulous credit organizations often shy away from accepting payments. They disappear for a long time, and then abruptly appear and sue the borrower for making payments.
You need to try to play it safe. Choose a lender wisely. Before applying for a loan, weigh everything. Is it worth it.
