In the United States solution of housing problem using a mortgage credit has become the standard. The share of mortgages is more than 90% of all transactions associated with the buying accommodation.
What credits can be? Loans are divided into two types: consumer and purpose.
Consumer loan.
Consumer loan is issued for a short term and is limited in the sum, i.e., having even a very high salary, you cannot get credit more than a certain sum. But you are able to use such a loan for anything while you do not put up security.
Purpose loan.
Target credit has an accurate definition of objectives, which can be used for and the bank will control it. Mortgage loan – is a target loan, which is issued for the buying property and on collateral of this property.
What is a mortgage?
Mortgage – is a system of long-term loans given for buying accommodation. The main advantage of this method is that the buyer has the opportunity to make an initial fee, which is typically 10-30% of the purchase cost and begin living in a new place. The residuary amount will be paid out during 10-20 years. A new apartment will be collateral for the bank.
Advantages of mortgage credit.
* No need to wait the needed sum of savings for obtaining of housing.
* With a steady increase in property prices it is more profitable to purchase an apartment on tick than to save money for it for several years.
* Mortgage allows you buying accommodation of higher quality than you could afford, using only your savings.
Generally, the mortgage scheme is following:
* The creditor (e.g. bank) issues a credit on the purchase of real estate to the loan subscriber;
* The mutuary buys real property at the expense of the loan;
* Acquired property is issued as bail for loan;
* Real estate acquired by the loan subscriber is left at the recipient of the loan in his possession and use with definite restrictions.
Documentation required for acquiring the loan:
- Filled application form;
- Civilian passport and the duplicate of passport of the wife / husband (all pages with information);
- Marriage certificate, birth certificate;
- ID of tax payer of the mutuary and wife / husband of the borrower;
- Certificate of employment, certified by the accounting, which proves the job of the borrower (wife / husband) and salary and withholding taxes for the last 6 months;
- Documents proving the other revenue of the mutuary.
The process of obtaining the credit for the purchased property:
- The mutuary goes to the bank to get the preliminary consent of the bank to issue the needed credit amount.
- The mutuary gathers all necessary documents.
- The bank gives a prior opinion about the issue of the necessary credit amount to the prospective buyer.
- It is chosen the apartment and the deposit is made.
- It is collected all needed documents and information necessary for obtaining the loan.
- Bank’s Credit Committee makes the final decision about issuance of the loan (2-7 days).
- The sales treaty is signed.
- An insurance policy is drawn.
- The state registration of the deal.
It is the basic stages of credit registration.
Many people who took a mortgage some time ago face difficult times today as the world economy hasn’t improved yet. If you one of those and you cannot find a solution, consider referring to a mortgage note buyer. In case you don’t know if there is a mortgage note buyer service somewhere in your region, make use of the Internet – there you can find lots of useful info.
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