Every year, an increasing number of our compatriots have to go to banks to get a loan to buy a home. However, many of them are not able to provide guarantors. Therefore, banks are trying to somehow protect themselves from possible risks. Often, documents officially confirming the existence of collateral are used for these purposes. After reading this article, you will learn how to apply for a mortgage on an apartment.
What is this document about?
This is an extremely important official paper, allowing the borrower to receive the required amount of money. In addition, a mortgage on an apartment on a mortgage acts as a documentary certificate certifying that the bank's client has the right to the described collateral. Currently, it is equated with registered securities. The mortgage must prescribe all the conditions of a mortgage loan agreement. Until the full repayment of the debt, this paper will be stored in a banking institution. In case of timely receipt of mandatory monthly payments, the collateral will remain legally inviolable.
Varieties of mortgage agreements
To date, lending for the purchase of housing is carried out in two different ways:
- mortgage under the contract;
- mortgage by law.
In the first case, it becomes necessary to sign an additional agreement, which spells out items that are not in the first contract. A mortgage agreement comes into force after its registration in the state register. All final financial issues must be resolved after the contract of sale and the mortgage agreement are registered with government agencies.
Most banks issue loans by law. This type of mortgage can save time on the preparation of the second contract.
When is this document needed?
Mortgage on an apartment on a mortgage is necessary primarily for the bank itself. Indeed, it is this paper that secures the right to the credit institution to own real estate purchased with funds allocated under the contract. Unlike most Western countries, where the procedure for applying for a mortgage is considered the norm, in our country it is used extremely rarely. One of the main requirements for collateral is its value. The price should significantly exceed the amount of the loan. For this reason, a substantial down payment is welcome in mortgage lending.
The basic requirements that a mortgage on an apartment must meet
Sberbank makes a number of requirements for the content of this document. In it, in addition to the word “mortgage”, such information as must be present:
- data on state registration of mortgages;
- borrower signature and date of issue of the mortgage to the bank;
- real estate appraisal, confirmed by a report issued by a licensed appraiser;
- location and description of housing;
- information on the terms of payment of debts and data on mandatory monthly installments;
- the amount of the obligation secured by the mortgage;
- location and name of the original pledge holder;
- information about the borrower (name, registration).
Paper in which at least one of the above points is missing cannot be considered a mortgage.For those who are interested in how a mortgage on an apartment is made out on a mortgage (a sample can be taken at the nearest bank branch), we will answer that this can be done independently or with the help of a qualified specialist.
Mortgage Valuation Stages
A mortgage on an apartment on a mortgage (VTB 24 also provides such services to the population) is subject to mandatory assessment. Do not forget that the goal of any bank is not only to make a profit, but also to minimize possible risks. Valuation of collateral allows a financial institution to protect itself from probable losses.
In order to conduct an independent apartment appraisal requested by the bank, it is necessary to call a representative of the appraisal company. The specialist will draw up an agreement in which the cost of his services will be recorded, and will inspect the property, during which several pictures will be taken. After the appraisal of the housing will be made, for which a mortgage on the apartment is made on the mortgage, photos will be attached to the report. Tariffs for appraiser services depend on several factors, including the region in which the apartment is located. Such work can be carried out by an independent organization, which has the appropriate license and acts on the basis of federal law.
List of documents required for evaluation
To carry out this procedure, you will need a standard package of documents, consisting of:
- extracts from the Unified State Register;
- equity agreement;
- certificate of registration;
- floor plan and technical passport of the apartment;
- the act of reception and transfer of housing;
- title documents;
- Photocopies of the passport of the borrower.
As title papers, you can use a certificate of state registration of ownership or an equity agreement.
The report must necessarily include a calculation of the market value of the apartment and its clear description. The appraiser is obliged to indicate the condition of the housing, its degree of deterioration, type of repair and layout. In addition, the evaluation report, on the basis of which a mortgage on the apartment will be drawn up on the mortgage, should indicate the social significance of the area, the degree of infrastructure development and other important factors.
How to make changes to the content of a document?
If it becomes necessary to amend the main points that the mortgage on the apartment contains on the mortgage, the parties to this paper must draw up an amendment agreement. It will become an integral part of the mortgage. Such an agreement may be concluded in different situations. The reason for its compilation may be the need for debt restructuring. The revision agreement is subject to registration. In this document, various conditions may be prescribed, which the parties themselves have been able to agree on. But, in addition, it must indicate the details of both parties, their signatures, the date, place and subject of the agreement, as well as information about the mortgage itself.
Can a bank transfer a mortgage to another institution?
The lender has the full right to sell the mortgage to insurance companies, mortgage agencies, pension funds, other banks and other financial and credit organizations. The implementation of this document allows him to provide himself with the money necessary to issue new loans. Moreover, in order to sell a mortgage, the bank is not obliged to obtain the consent of the borrower, since the transfer of rights is not reflected in the terms of the loan agreement. When selling a document, a note on the new owner should be made on it, indicating its name and the grounds that served as the reason for the transfer of rights. After that, the bank is obliged to notify the borrower of what happened.
Mortgage on an apartment on a mortgage: pitfalls
Most bank employees are not much spread about the presence of any nuances. But this does not mean that they do not exist.In fact, borrowers often have to deal with suddenly discovered “pitfalls”. This may be an unexpectedly popped up commission charged for issuing a mortgage. As a rule, the amount of such a fee is 1.5% of the total amount. Some banks set a fixed rate of at least 30 thousand rubles. Of course, the borrower can always refuse to pay this commission. But in this case, you need to be prepared to increase the base interest rate by 0.5%.
In addition, the mandatory annual mortgage insurance should not be discounted. You will have to pay at least 4 thousand rubles for this. Also, some banks insist on borrower life insurance. Such additional costs will draw another 5 thousand rubles a year. In case of refusal of such insurance, the bank has every right to increase the rate for using the loan by 1%.
Those who take a mortgage loan need to be prepared for the fact that over the next few years, and sometimes decades, they will have to carefully plan all their expenses. Indeed, often potential borrowers do not think that to make monthly mortgage payments they will have to deny themselves many of the usual pleasures. In addition, thirty-year-old borrowers should clearly understand that at the time of the last payment, many of them will have time to celebrate their 60th anniversary. And during this time, many changes can occur.
