Many people are interested in questions about what to do after a mortgage is approved. In this article, we tried to systematize the data and provide a clear step-by-step plan for borrowers.
After you have collected and submitted all the documents to the bank for mortgage loan approval, you need to wait some time. As a rule, within 1-2 days a bank employee will notify you of the decision made. If the answer is yes, you will need to complete the following steps.
Making a down payment
Sberbank issues mortgage loans to its clients subject to their making a down payment. Its size depends on the category of the borrower, the terms of the loan and the property. So, when purchasing an apartment, the following down payment amounts are established:
- 10% – for salary clients;
- 15% – for other clients, subject to confirmation of income and employment;
- 50% – for a mortgage based on two documents, when the borrower cannot confirm his income.
And if, for example, a borrower wants to buy or build a house, then the minimum down payment, even with proof of income, will be 25% of the cost of the property.
Depending on the mortgage program, the client deposits money either before signing the purchase and sale agreement (purchase of finished housing), or after registering the equity participation agreement (if the housing is still under construction). Money can be deposited in the following ways:
- cash at the bank's cash desk;
- transferring money to a special account in Sberbank opened for mortgages.
Additional time may be required when using certificates. For example, these are used when applying for a mortgage with maternity capital and a military mortgage.
When the money has been deposited, all real estate documents have been submitted, the bank will re-evaluate the home and the borrower himself. This usually takes 2 days. Only after this the client enters into a deal.
Mortgage approval in Sberbank
In order to get a mortgage approved by Sberbank, you need to submit an application. There are several options:
- submitting an application at a banking institution;
- submission through bank partners;
- submit your application online.
After the application has been submitted, the corresponding questionnaire has been filled out and all the necessary documents have been attached, the bank carefully analyzes the client’s data to make its decision.
Typically, the processing time for a mortgage application at Sberbank is 2-3 business days, but pensioners and bank salary card holders can receive a decision even the same day.
How to find out the solution:
- wait for an SMS from Sberbank (there is no approved amount there, so you need to check it with a mortgage specialist);
- wait for the Sberbank mortgager to call (he is obliged to call within a few hours after approval and inform about the approved amount and further steps);
- call a mortgage broker (if you applied for a mortgage through an agency or developer, you can find out all the details from them).
Why they may refuse:
- bad credit history;
- debt overload;
- low income;
- forgery of documents;
- inaccurate information in the application form;
- the employer does not confirm employment;
- hunter refusal;
- expert decision of the underwriter.
These are the main reasons for refusals, but an SMS with a refusal does not always put an end to you.
There are a number of technical refusals that allow you to resubmit an application if the bank’s comments are eliminated:
- there is no required number of credits to the salary card;
- errors in full name and passport data when opening a salary card;
- the passport is invalid according to the FMS;
- insufficient income.
The probability of approval for a repeated application based on such refusals is quite high. The main thing is to clarify the reason for the refusal with a mortgage specialist and eliminate it, so after an SMS with a refusal, you need to call your specialist at the bank and find out the reason. They may not tell you, so it is best to submit an application through a bank partner, to whom, through personal connections, they can give a real answer about the reasons for the negative decision on the application.
If the refusal is justified, then you can submit a second application to Sberbank after 2 months.
The validity period of a positive decision on a mortgage at Sberbank is three months. During this time, the borrower must deal with all other issues. During this period, the client must provide the bank with documents relating to the loan object.
How to speed up the approval process?
When deciding to issue a loan, the bank analyzes many factors, and this takes some time.
You can speed up the process of approving your application and obtaining a mortgage by using the following recommendations:
- Order an income certificate and a copy of your work record book from your employer in advance. For some programs, other documents may be needed, for example, to obtain a military mortgage, you need a certificate of a participant in the NIS (savings-based mortgage system).
- Even before contacting the bank, make your own calculation of the monthly payment. It can be calculated on the website of the selected bank or by contacting the contact center specialists for help. If the monthly payment is more than 50% of your income, then co-borrowers will be needed to obtain a positive decision on your application. It's better to find them in advance.
- Decide on the property before applying. If you are planning to purchase an apartment in a new building, it is better to contact developers accredited by the bank. When purchasing real estate on the secondary market, you can ask the seller to order an extract from the Unified State Register and other documents before contacting the bank.
Preparing for a housing loan
To get a positive answer, the client should study in detail the requirements for borrowers and collect a complete package of documents. The first mainly relate to age (21-65 years), permanent employment and income level. Based on these parameters, the loan size and rate will be determined.
Making a responsible decision is a guarantee of obtaining a loan on optimal terms
Documents for issuing a mortgage loan
- Passport.
- Registration.
- Other identification (driver's license, pension, military ID, international passport, etc.).
- A work record book or a certificate from work describing the work experience for the last six months and 5 years.
- A certificate, statement or other paper indicating the parameters of the client’s monthly replenishment from salary payments.
- Documents for collateral, if used to increase the loan amount.
- Documents for using preferential or special programs: marriage certificate, mother’s capital certificate.
By submitting all of the above to the bank, the client fills out an application (Download Application for a mortgage from Sberbank, in which he notes the optimal conditions (total amount, desired amount of payments per month, term) and determines the parameters characterizing the client’s solvency and respectability. The
review process lasts up to 5 days In some cases, it may increase if there are doubts or any data requires verification. For more details, read our article - Stages of obtaining a mortgage
All stages of mortgage loan processing
Actions after notifying the bank
If the client’s preliminary application is rejected, he can either submit documents to another banking organization, or wait 2 months and send the application to the bank again. But what to do after your mortgage is approved by Sberbank? Let's look at this question in more detail.
Selection of real estate
After the lender approves the preliminary application, the client knows how much of the loan he can expect. Based on this information, you can begin to select housing to purchase. When choosing an object, you should pay attention to such parameters as:
- total cost;
- wear percentage;
- availability of communications (water, heating, sewerage);
- year of construction;
- presence of minor children among the owners.
These parameters may affect the bank’s acceptance of the selected apartment/house as collateral. However, if Sberbank rejects one of the proposed apartments, the future borrower can submit documents for another (third, fifth, etc.). The main thing is to meet the three-month deadline while the loan approval is valid.
We recommend looking at properties for purchase in parallel with collecting documents for a preliminary application. This will save a lot of time after approval.
Collection of documents
When an apartment is found, it is necessary to collect a certain package of documents so that the bank can assess its liquidity. Consideration of the package of papers for an apartment is usually carried out by creditors within 3 to 7 days.
A number of papers required for a purchase with a mortgage are not needed for a regular purchase and sale transaction. In this regard, sellers do not arrange them in advance. The buyer will have to either look for an apartment with a ready-made set of documents, or make an additional payment for their registration in a short time from his own funds.
It is permissible to make a down payment through a receipt
What papers will be required? Sberbank has the following documents in its list of basic documents:
- title (agreements or certificates that gave rise to ownership of the premises by the current owners);
- proof of title - usually a state-issued certificate of ownership;
- extract from the Unified State Register;
- assessment report;
- extract from the house register;
- technical passport (or cadastral passport and explication of the premises);
- depending on the marital status of the seller - the consent of the spouse to the transaction or a prenuptial agreement.
Depending on the type of real estate, other documents may be required. The complete list should be checked with the mortgage manager of Sberbank.
Valuation of real estate
A mandatory document for the bank to make a decision on approving the collateral is the apartment appraisal report. Its registration is usually paid by the buyer of the property. You can order an assessment from any of the specialized companies. But it is best to submit documents to those organizations that cooperate with the lender. You can also get a list of them from your mortgage specialist.
To compile an assessment report you will need:
- provision of a basic package of real estate documents to the appraisal company;
- visit of a specialist to the site to inspect it.
In addition, in the process of drawing up the report, the appraiser monitors the market, comparing prices for objects similar in characteristics to the future subject of collateral, analyzes the area in which the apartment is located in terms of its infrastructure and transport accessibility, etc. All these operations take from 3 to 7 business days. The validity period of the finished document is 6 months from the date of issue.
Applying for insurance and making a down payment
All of the above documents are provided to the lender to determine the liquidity of the collateral. If the bank decides that the apartment is suitable for a mortgage, it informs clients about this, and they begin to prepare for the transaction. The steps after the bond is approved are as follows:
- real estate and title insurance is issued;
- the borrower himself is insured (life and health);
- Documents are provided confirming that the borrower has a down payment.
The bank must approve the selected housing
Taking out insurance policies is, in principle, optional. But in most banks, this service allows you to reduce the final rate under the contract. The borrower can purchase insurance only for the first year of using the mortgage. But here it is necessary to clarify whether the interest on the loan will not be recalculated if the policy is not renewed.
As for the down payment, it can be confirmed as follows:
- depositing the required amount into a bank account;
- providing a receipt from the seller stating that the amount was received in cash;
- provision of government certificates (military certificate, maternity capital, assistance program for young families, etc.).
This issue is usually resolved by the buyer before receiving approval for a mortgage. By the way, in some banks, placing the first payment on the account before the conclusion of the contract allows not only to increase the chance of loan approval, but also to reduce the final interest rate. But Sberbank currently does not have such an opportunity.
Signing the contract
Once the collateral is approved, the apartment buyer can sign a loan agreement. Usually this procedure is agreed upon in advance with the bank. The following must be present at the signing:
- real estate buyer;
- apartment seller;
- creditor's representative.
If either party has a realtor, he also has the right to participate in this process. By the way, you can combine signing the contract with issuing an insurance policy.
If there are several co-borrowers/guarantors involved in the mortgage loan, then all of them must be present at the signing of the loan document.
The bank requires insurance for collateral property
Registration of ownership
After signing the loan agreement, the parties to the transaction submit documents to Rosreestr for its registration. This can be done either online - through the Rosreestr portal or through Sberbank services - or in the traditional way.
Registration requires mandatory payment of a state fee by each party to the transaction. The seller pays for the removal of ownership rights, the buyer pays for taking ownership, as well as for imposing an encumbrance on the apartment. Fee amounts are standard in each region. When submitting documents, the parties receive receipts from Rosreestr, which must be paid immediately - through the organization’s cash desk or an intermediary bank. If a client orders electronic registration from Sberbank, he will have to pay additionally for this service.
Registration of a transaction takes 5 working days. After this period, the buyer will receive documents on ownership, which will need to be presented to the bank. Then the seller will be transferred money in the amount of the cost of housing specified in the contract.
