There is no such person who would not hear about the mortgage. But not everyone knows about what it is and how mortgage registration works. First, let's define the concept of "mortgage". This word came to us from the Greek language and in translation sounds like “mortgage”, “pledge”. Thus, the definition of the term “mortgage” will sound like a pledge of real estate. Moreover, the collateral remains in the hands of the borrower.
Mortgages are made according to the documents provided by the borrower. In addition to the statement that is written in the bank, you must provide:
• passport;
• certificate confirming income;
• guarantors.
Banking organizations offer the public a service such as arranging an apartment for a mortgage. After choosing a banking organization that meets the wishes of the borrower, an application and a package of documents requested by the banking organization are submitted. Some Russian banks that work under the mortgage loan program may provide a service such as express lending. It will take several hours to consider such an application in accelerated mode. While the bank will carry out the verification procedure of the borrower, it is necessary to select housing for purchase that would meet the requirements of the banking organization.
The procedure for registration of a mortgage involves the provision of a package of documents on the transaction of sale; it is also necessary to assess the housing. Each banking organization has its own conditions for providing documents, but the main ones are:
• housing plan and its passport;
• title documents for housing;
• certificate of registration;
• characteristic of the premises;
• certificates confirming the absence of debt for utilities;
• extract from the state registry.
Making a mortgage includes an assessment of housing. This procedure is carried out in connection with a limited loan amount provided by a mortgage bank. It takes into account the market
value of housing. Valuation of housing is a must. Banking organizations are directly interested in this assessment, since they must be sure that housing, being the subject of a pledge, can be sold for the amount of a mortgage loan issued for its purchase.
The next point is home insurance. This is also an important stage, which is included in the design of the mortgage. This procedure gives the bank a guarantee in case of loss of legal capacity of the borrower or loss of ownership of housing or in case of damage to housing.
After following all these procedures (checking the documents for the property chosen by the borrower, housing assessment, insurance), the time comes to conclude a mortgage loan agreement.
The borrower is advised to study the contract document in detail, since in some banking organizations the contract after signing is not subject to change and adjustment.
In some cases, when signing a mortgage agreement, a mortgage may be required. Have a nice design!