In order to purchase housing, most people take loans from banks. But the bank does not provide this service for everyone. To get a loan, you need to have a good credit history, official work, as well as a down payment on a mortgage. Usually this amount is measured in several hundred thousand rubles, so not everyone has it.
Down payment value
The down payment on the mortgage will be included in the cost of housing. The conditions for its transfer will depend on the content of the contract of sale. But the funds must be transferred before obtaining a loan. Their transfer will be evidence that a person is really solvent.
Why do I need a down payment on a mortgage? Most banks require citizens to have their own money in order to make an assessment, as well as to determine insolvent. When they are identified, the financial institution will not allow the approval of a loan, since with mortgage loans, large amounts of money are issued to customers. The presence of money in a person indicates his thrift, the ability to pay debt in the future, the desire to go towards his goal gradually. That is, such a person is considered more reliable, since he was able to accumulate a certain amount over a long period or was able to get money in another way, but he disposes of them wisely.
Typically, housing is necessary for young couples, but they do not have a down payment on a mortgage, and there is also no sufficient income. Therefore, not all young families can afford to buy an apartment or a house right away. They must initially live with relatives or rent housing and at the same time save. This logic is not entirely true, since the money that goes to rent an apartment could be a payment of a monthly mortgage payment.
Mortgage Amount
Will personal money be included in the total amount of the mortgage loan , which will become a down payment in the future? These funds will not be included in the loan amount, the borrower pays a certain percentage of the total cost of housing. The bank benefits from this, because if a person cannot pay in the future, the creditor will return all his money, and he will also be able to cover all expenses and penalties, interest. Regardless of how much the person paid, he will be returned only what remains after payment of all existing expenses and interest. The amount returned is usually much less than the person spent.
Share of cash
There are many banks in the Russian Federation. Before you take a loan in a particular institution, you must check the conditions and choose the most favorable for yourself.
The first installment of a mortgage in Sberbank will be 20% of the total cost of housing. For the military, the initial amount will be 15%. If a person wants or can provide only two basic documents, then the share of his personal funds should be 50%, regardless of which program the borrower chooses. For primary unfinished housing, the amount will be 15%. The amount for building a house will increase and will be equal to 25%. That is, the more reliable the person, the more documents he can provide, the more loyal the borrower will be towards him. And the client will be able to invest a smaller share of their personal money.
The first installment of a mortgage in Sberbank in many cases is 20%. But sometimes the institution holds various promotions, and the amount may decrease with the provision of additional documents. You must always keep track of bank conditions to keep abreast of changes. You can also ask the consultant to notify you of the changes.
For the military, the Ministry of Defense becomes a guarantee, which concludes a contract with subordinates for a long period. Therefore, for them, the bank has provided a minimum percentage. For customers who do not want or cannot provide information about the workplace and salary, a financial institution asks for half of the cost of housing.
Sometimes banks provide loans without first installments, but the conditions are tough. For example, a lender can protect himself and provide a loan with a very high interest rate, which may also include the mandatory conclusion of insurance contracts, the inclusion of many additional commissions, as well as the establishment of certain restrictions.
When studying various banking programs, one can reveal a feature: the larger the amount of the contribution, the lower the interest rate. This is due to the fact that the lender in this case provides a smaller amount, and the situation for him becomes the most secure.
Large down payment
What is the first down payment on a mortgage in Moscow (or any other city) in order to get the most favorable repayment conditions? The larger the personal contribution of the borrower, the more favorable the loan conditions, since there will be less:
- interest rate;
- required percentage;
- insurance payments;
- monthly fee.
The availability of money
The minimum percentage of the down payment of the mortgage is determined by the bank. The stage of transferring funds to the seller of housing occurs without the intervention of financial institutions. That is, the buyer can transfer money against receipt, transfer to the buyer's account, use bank cells. Before issuing a loan, the bank will require proof of solvency from the borrower.
The agreement on the sale of real estate must indicate where the down payment will be directed. It is very important. Sometimes, several people may be the owners of a dwelling, therefore it is necessary to indicate whether payment will be made to each member individually or to only one person. If you need to pay each owner, you should write in the contract the amount of each person and bank details where the funds will be sent.
If the bank does not require certain actions to transfer money to the cell, then the algorithm of actions will be standard (as when buying a home without a loan).
Transfer of money
A mortgage with a down payment is carried out as follows.
- Advance payment is the first part of the total value of the property. In case of refusal to complete the transaction, these funds must be returned in full to the failed buyer. But if the termination is initiated by the buyer, then the deposit may be lost. If the contract was terminated due to the desire of the seller, then he must return the money in double amount. The option of considering the termination should be spelled out in the contract so that the buyer does not lose his money. Payment must be made at the time of preliminary preparation and signing of the contract. This may be a cash payment. After the seller received the money, he puts the amount, signature and full name, first name, middle name. Thus, he confirms the fact of receiving payment. You can also make payments through the bank using wire transfer. The bank will issue confirmation of the transaction. The person who paid has the original and the buyer is given a copy.
- The second part of the payment is the amount of cash equal to the difference between the down payment and the first part paid (i.e. advance payment). For example, you should clarify the first installment of a mortgage and calculate the minimum required amount of equity. The first part of the payment must be specified in the agreement between the seller and the buyer. Usually this amount will be equal to the services of realtors. The remaining second part is the difference between the amount of the down payment and the money already transferred to the seller. The transfer of money in the second stage should also have its confirmation. The fact of transfer can be carried out, as in the first method, using the contract and bank transfer through the bank. But it is worth noting that the bank may additionally request a receipt from the seller that the second stage of the transfer of funds was carried out. This will confirm that the buyer has paid the down payment in full.
- The bank transfers the funds to the lender himself. The transfer of funds will be carried out only after the buyer provides all the necessary documents for the transaction.
What could be a down payment
The amount of cash is determined by a bank employee. If the mortgage is the first installment - mat. capital, you need to make sure that a particular bank is working with this type of funds. In most institutions, these savings are confirmation of the availability of money in a person. Typically, banks receive all the necessary documents from the buyer and independently act with the Pension Fund. Transfer is made by bank transfer. Today, almost all banks accept maternity capital as the first installment of a mortgage. This money helps many young families buy their home.
If the down payment is housing
Sometimes banks can accept available property as money from the buyer. The percentage of the contribution from the total amount will depend on the assessment of a particular object and the conditions of the lender. In some cases, banks are allowed to use their own housing for a certain period of time. This will be beneficial for a family who buys an apartment in an unfinished house. Until the house is commissioned, buyers can live in their own.
The second loan is a contribution
Sometimes the situation is such that a person urgently needs to buy an apartment, but there is no money. Then there is the option of drawing up two loan agreements at the same time. The first loan will go for a contribution, and accordingly the second - the mortgage itself. Although this way out of the situation is extremely dangerous. In order to apply for two loans, you must have a constant and sufficient income so that you can repay them at the same time.
All banks have one base. And the bank, which is to issue a mortgage loan, will immediately see that the cash was disbursed earlier. Lenders can approve both loans, but the buyer must understand for himself whether he will be able to pay both loans for a long time. Even the minimum down payment amount is large, as it is expressed in hundreds of thousands of rubles. But consumer loans are issued for a maximum of five years. Moreover, interest rates at any banks are always high. Also, without fail, lenders add a variety of insurance, which will spend a significant amount of money.
Before deciding to take the first installment of a mortgage in an apartment, it is better to calculate the approximate payment in advance. To do this, you can ask a bank consultant to make an approximate calculation of the loan. Having added two payments, you can understand how much you will need to pay each month. And it will become clear whether this decision is acceptable. It is also worth noting that once a year you need to insure property. For insurance, you also need a decent amount of money.
Mortgage without down payment
Accumulating a certain amount to get a mortgage is not easy. Therefore, some banks offer to purchase a loan without a down payment. A mortgage without a down payment in Yekaterinburg or any other city allows many families to purchase housing:
- Banks provide an opportunity to acquire property for military personnel without a down payment.
- Persons registered to improve their living conditions can get a mortgage under special state programs. The state helps and pays subsidies, which will be the down payment in the mortgage agreement. But usually this procedure takes a long time, because the queue is long, and the state has a certain limit.
- You can also get a loan without your money, with the help of a guarantor with a good credit history and high income.
For example, in Yekaterinburg, a mortgage without a down payment is widespread, as many special offers are received from lenders.
Resellers
Buying real estate in the secondary market has many advantages:
- Large selection, you can purchase housing at your discretion and desire.
- You can enter and live in the house immediately after the transaction occurs. No need to wait until the house is approved and put into operation.
- Usually apartments when buying in the secondary market are located in places with developed infrastructure.
- There is no danger of being deceived by developers and to be left without housing at all.
- Typically, the interest rate for a given housing is reduced, as the lender receives an existing apartment as collateral. That is, the acquisition of an already built house is reliable for the bank. And with an unfinished house, the bank takes the risk, as developers can deceive.
And yet, the purchase of an apartment in the secondary market carries many dangers. For example, legal verification of documents may not always give an accurate answer about the number of owners of an apartment. Overlappings, as well as communications can be old, and after moving you will have to repair everything, respectively, this will be an additional waste of money. The implementation of illegal redevelopment can be a problem when buying a home. Not always apartment sellers can be honest, conscientious people. Therefore, before buying an apartment, you must also do your own check.
The minimum down payment for a mortgage for secondary housing is usually 20% in banks. Institutions that have been operating in the financial market for a long time and have managed to get enough customers will not give a loan with a small fee. Usually, in order to reduce the fee, it is necessary to provide a lot of documents. There are banks that are relatively new to the market. They can lower the amount of the down payment, as well as lower interest rates in order to increase the flow of customers. Therefore, before you take a loan, you need to look at the conditions of many banks and choose for yourself the most profitable program.