"I want to get a mortgage! Where to start?" - This question is asked by many who have decided on such a complex and responsible enterprise as buying an apartment on credit. Indeed, there are always many questions, especially if this is all the first time. How to pay, when, to whom? When will the documents be ready? When will the apartment become personal 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 figuring out where to start buying a home on a mortgage, it would be nice to find out what it really is. Of course, for the most part of the population it has long been known firsthand, but there are certainly those who are not too savvy in the matter.
So, a mortgage is called one of the forms 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 gives out the necessary amount, and the debtor undertakes to return it, of course, with interest. All the while he pays the debt, the housing is already in his ownership, however, if for some reason he has stopped paying the monthly amount, the bank is free to dispose of the apartment at its discretion: in particular, to sell it to receive its 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 back.
A small digression into the history of mortgages
Where to start a conversation? Of course, with the origin of the definition. The very concept of "mortgage" is far from new - it is already many centuries old. In the sixth century BC, the ancient Greeks operated on this term. It was used by them to designate the land of the debtor and visually represented a pillar that was dug on this very land. It was his mortgage that was called. This meant "pledge," "warning." A sign also hung on the pillar stating that the owner of the given territory is paying a loan.
In our country, the first mortgage bank arose at the end of the eighteenth century. Later, however, the “shop” took cover, and it all 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 key points of this type of loan. So, for example, they issue it, as a rule, for a long period of time (although it is not forbidden, of course, to pay off the debt earlier if the payer is able to do this), and the interest rate is usually lower than other types of loans.
There are several ways to pay off a debt, which you should also be aware of before thinking about where to start applying for a mortgage:
- Each month, you can give back the amount, which in equal parts repays both the loan itself and the interest for it (for example, the entire payment is 10 thousand, five of which go to pay the loan, and five to pay interest).
- 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 be spent on interest, and only five - on a loan. But gradually the ratio will change (when interest will be 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 everyone is weighed in for and against and the decision is made, what should be done first? How to start a mortgage?
First of all, you should decide on the bank from which you want to get finances. There are a lot of banks in our country today, despite the fact that many are known only to the leading ones - Sberbank, VTB and others like them. Information on several institutions of this kind must be carefully probed.
Why is this the first way to start a mortgage? Yes, because different banks have different conditions. Somewhere there will be less percentage, somewhere they will offer a preferential program, and somewhere else something else. Therefore, it is important to find out several offers, compare them and choose the most suitable option for yourself.
Finance sing romances?
In general, the main thing, where to start taking a mortgage, is to achieve final certainty with the financial parties:
- with the amount that I would like to receive a loan;
- with that part of the funds that it is possible to pay as a down payment.
In different banks, the percentage that goes to pay the down payment is also different, although the differences are not very huge. 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 it’s fifteen. True, most often, we are talking about twenty percent and above (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 contribute yourself, you can calculate the required loan size. That is why all this is an important step in the issue of an apartment in a mortgage: where to start its design.
The period for which the mortgage will be calculated is also a rather significant moment in this issue. The amount that will need to be repaid monthly depends directly 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 a loan is issued 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 the bank, you need to be prepared for the fact that all four will have to be returned.
If you have any questions
Questions when obtaining a mortgage - where to start and how to get it right - are not uncommon. They are found in every second applicant (if not every first). Therefore, it is quite appropriate and advisable to request assistance and / or consultation with a specialist in mortgage issues. This can be done both in the bank you have already selected, or simply by going to any convenient place where there is a similar consultant. He will answer all questions and clarify the necessary information. At the very least, it will make more clear what has so far remained very vague.
Required documents
Among other things, you also need to collect documents to arrange housing in a mortgage. Where to start here:
- First of all, you need to make photocopies of your passport and insurance certificate (green plastic paper).
- Order a statement of income at work (as a rule, this is 2-NDFL).
- Men may also need a military ID and a copy of it.
- In addition, a certificate of education, a copy of the employment contract will be required.
- If a person was or is married, you will need a certificate of him or his dissolution.
- If there are children, it will be necessary to attach copies of the birth certificate of the offspring to the application.
In the event that any other documents are needed, in addition to the above list, the bank consultant must certainly inform about this.
Yes, by the way, each applicant has his own consultant attached to him, who will continue to work with him and suggest all the steps for registering an apartment as a mortgage: where to start and what to do next.
Following actions
Where to start mortgage registration, we learned and discussed. What to do next, after all these steps? Yes, everything is simple: apply.
Previously, this could only be done personally, by coming to the selected bank, with live communication with a specialist. Today, in the modern age of technology, a similar procedure is available in electronic form. In this case, you don’t have to go anywhere. It is enough to just 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 press the "send" button.
Consideration is carried out rather quickly - within literally several hours any 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 under way, whether it is refused or approved - all this can be seen online.
If you refused a mortgage
An important point: it may happen that a refusal comes to the application (all reasons must be explained). There can be a lot of reasons for refusal:
- Incorrectly filled in fields
- poorly readable scans;
- the absence of any necessary document and so on.
All these problems are solvable. And after eliminating them, you need to send the application again and wait again.
Among the reasons for the 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 small to take 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 afflicted person to own real estate, and from whom the bank will be able to take the money owed to him in the event that the applicant himself for any reason proves to be financially insolvent.
When making surety, you will also need to indicate all the necessary information about him, in particular, provide information on education, a certificate of his income and the like.
Is there a difference in banks?
People often ask about whether there is a difference in the design of mortgages in different banks. For example, at VTB, Sberbank, or Rosselkhozbank ... And if, for example, you get a mortgage at Sberbank, where do you start?
In fact, there is no difference. All the same documents will be needed, all the same procedures will have to go through. Some slight nuances may vary. If something goes wrong, a mortgage specialist will definitely say so. Where to begin to correct the existing shortcomings, he, too, will certainly prompt and advise. By and large, the applicant does not need to worry at all about anything - for this there is a consultant. When everything is correctly designed, all that remains is to wait for a solution. And then rejoice in the positive answer and in a hurry to conclude a contract for an apartment!
Some tips to help beginner debtors
To keep things simple, lending experts usually give some advice. Here are a few of them:
- It is necessary to remain a sane person and to soberly evaluate your resources. According to experts, the loan should be such that each month to part with no more than thirty percent of the family budget - otherwise it will hit your pocketbook painfully.
- Individuals prefer to take a mortgage not in rubles, but in a different currency, so that it is more economical. This is not a good idea, because at first it may be more economical, but you never know what will happen to the course in five minutes. And if he suddenly jumps, those who want to save will have to be a little taut.
- Be sure to carefully read all the documents before signing them. This rule you need to literally learn 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.
- Another recommendation, and this has already been mentioned earlier, is the advice not to focus on only one bank, but to study in advance the proposals of several financial institutions. Weigh everything carefully, think it over, perhaps discuss it with someone else and only then make a decision. Often the problem for many is that people go to a bank only because they heard what is good there, from their friends who once, several years ago, were credited there. Unfortunately, this is not an indicator, and you can encounter great disappointments. And the train, as they say, has already left. By the way, hesitating between a large bank with a good "name" and a long history and a small, newcomer to the market, it is always necessary to make a choice in favor of the former.
- Do not immediately strive to get "from rags to riches", in other words, to swing at multi-room apartments. Better less, but better!
- A loan is best taken for the shortest possible time - then the overpayment will be less.
- You always need to try to have money “in reserve”, that is, live in such a way that there are funds to pay the mortgage for a couple of months in advance. Experts consider it an ideal option when there is always money to pay for three months in advance.
- Some people live with the hope that the bank that issued them a loan will suddenly go bankrupt, and then their debt will self-destruct. This is not true. Yes, indeed, from time to time this happens, banks declare themselves bankrupt. However, even in this case, they have an assignee, that is, the one to whom everything goes “by inheritance” - including mortgage debts. Therefore, it will still have to be returned. Even if not the one they took from.
Something about a mortgage
Finally, a few interesting facts:
- In the first century BC, Ancient Rome defeated Greece. Along with many other trophies, a mortgage came to the conquerors. The ancient Roman loan was terribly beneficial: it was issued at only five percent per annum.
- In Russia in the eighteenth and nineteenth centuries, a loan could be obtained by mortgaging his estate (speaking of landowners, of course, the peasants had nothing to mortgage).
- Mortgages disappeared in Russia with the advent of the Bolsheviks and the advent of the Soviet Union.
- The most profitable to take a mortgage in France: there you need to return the money at only three percent per annum!
- The most expensive real estate in Switzerland (and also in London and Monte Carlo), but on the other hand, they give a mortgage in this country for up to one hundred years (in Russia, for comparison, the maximum is thirty years).
- Nine years ago, more housing deals were made in the United States over the course of a year than marriages.
- There is an interesting tradition among the Scots: when they fully pay off their mortgage debt, they paint the door of their house with red paint.
- Americans also have a similar tradition. Only they do not paint the door, they hang a flying eagle above it - a symbol of freedom.
- We continue to talk about the inhabitants of the United States: only thirty percent of them live without a mortgage.
- The world average mortgage installment is six percent per annum.
The article highlights the most important nuances that provide answers to questions about how to get a mortgage and where to start this important procedure.