A real way to make money on a mortgage. Specific example

Basic requirements for borrowers

To filter borrowers, banks have developed their own customer assessment system. This system was called underwriting. These are activities whose purpose is to determine the likelihood of full collateral for the loan. Rest assured, the verification will not end with just one document confirming your identity. The excessive vigilance of banks is justified; just remember the problem with mortgages in the United States, which led to foreclosure and the beginning of the 2007 crisis.

In Russia, banks carry out the underwriting procedure in several stages, each of which must confirm the financial stability of the borrower. This way the risks are checked. The following coefficients are calculated: the ratio of the amount of monthly mortgage payments to the total monthly income of the borrower; the ratio of the amount of debt to the cost of housing.

So, what does the bank necessarily take into account when checking a client?

Age

When considering a mortgage application, the client's age is also taken into account. If the mortgage is taken out for decades, this criterion becomes very important. It also determines whether the lender will need guarantors or not.

Persons who have reached a certain age are allowed to take out a mortgage loan. The age for obtaining a mortgage for most offers is from 21 to 65 years. It is believed that this interval ensures reliable payment of debt.

At the same time, some banks issue mortgages to borrowers over 18 years of age, for example, AK Bars Bank, Uralsib. Other financial organizations are ready to lend to pensioners up to 75 years of age, for example, Sberbank does this. Rosselkhozbank lends up to 75 years of age if there is a co-borrower and if at the time of execution the borrower is 65 years old and has already paid at least half of the loan term.

Citizenship

Most Russian banks impose Russian citizenship as their main requirement. Lenders are reluctant to take on increased risks when dealing with foreigners. Still, this is not excluded, but most often it is possible if the bank has foreign capital in its assets. For example, DeltaCredit Bank and Alfabank issue mortgages to foreign citizens.

If the borrower is registered in the city where the bank operates, this is among the lender’s requirements. This restriction binds the borrower to a specific territory. In case of late payment, it will be easier to find the borrower. Some people demand stricter conditions—permanent registration; others put forward more flexible conditions—temporary registration. There are also banks that do not care where exactly the client is registered.

Registration

Some banks require permanent registration, others will not mind temporary registration, and still others will not care where exactly the client is registered. Depends on the policy of a particular credit institution. It is advisable to choose a bank that has many branches throughout the country. Because if you, for example, live in Stavropol, and want to buy an apartment, say, in Ryazan, but in Ryazan there is no branch of the bank to which you want to apply for the purchase of housing, then you cannot buy an apartment in this city with a mortgage.

Seniority

It is important to have work experience when considering the question of who is given a mortgage. In most cases, it is required that continuous employment at the last place of work be for at least six months. But there are also exceptions. The bank will also ask what is written in the client’s work book and will pay attention to the duration of work in organizations and the period of unemployment. The size of the interest rate on the mortgage, the requirement for additional collateral, and the term of the loan may depend on how the labor bank receives the entries.

Income level

As stated by the Chairman of the Bank of Russia, Elvira Nabiullina, Russians spend 44% of their income on servicing loans. Compared to the West, the figure is high.

Very soon an indicator will be introduced that will reflect the ratio of debt to income. It will be called the debt burden indicator. It will be primarily taken into account by credit institutions.

For now, a simple rule is taken into account - no more than 40% of monthly income should be spent on loan repayment. This will allow the family not to limit themselves too much in everyday needs.

More trust in official sources of income, where there is documentary evidence of them. But there are also programs without proof of income - a mortgage on two documents or taking into account additional sources of income, for example, receiving dividends, income from renting out housing, a deposit, etc. You can confirm the presence of such sources of income using statements, contracts, etc.

An initial fee

The bank requires a minimum of 10% of the cost of housing from the borrower for the first payment. The more the client is willing to invest in the down payment, the more profitable the rate will be and the lower the amount of overpayment for the mortgage. The easiest way to solve the problem of a down payment is for families whose second child was born after January 1, 2007. They can use maternity capital as a down payment immediately, without waiting three years from the birth of their second child.

You may be interested in: “Mortgage Down Payment: How Things Are Stuffing in 2021”

Credit history

A good credit history means that the client took out a loan from the bank and paid it off on time without delays. Credit history is checked at all credit institutions. Therefore, it is difficult to hide a bad credit history; it is stored in the credit history bureau. You can find out your loan history for little money; this service costs about five hundred rubles on the market. Please note that even two underpaid rubles spoil your story.

Two main types of mortgage

The service clarifies that there are two types of mortgage, each of which is considered basic: by force of contract and by force of law. Both types involve the transfer of residential premises as collateral.

Mortgage by virtue of an agreement is the transfer by one party (the mortgagor) to the other party (the mortgagee) of real estate as collateral. The pledge holder in this case acts as a creditor who allocates a certain amount to the pledgor. Real estate is recognized as the main security under the contract. The agreement is drawn up in writing. State registration of a mortgage by virtue of an agreement is carried out on the basis of a joint application of both parties involved in the transaction.

By law, a mortgage is understood as the acquisition or construction of a property with the participation of credit funds. In this case, we are talking about the most popular type of mortgage, when a credit institution issues funds to the borrower for the purchase of real estate - an apartment, a residential building, a plot of land, country real estate.

Regardless of the type, a mortgage involves the transfer of real estate as collateral to the mortgagee - the creditor who provided the mortgagor with funds. A pledge implies restrictions on the owner's rights to dispose of property. It is bank mortgages that are most in demand among the population. A legal pledge implies the same legal consequences as a contractual one - in terms of legal characteristics, there is no difference in both cases.

Required documents

Mortgage approval is a two-step process. At the beginning, the borrower is assessed according to several parameters. The assessment is based on the documents provided, which reflect his status and financial security. This is confirmed by a passport, work book, 2-NDFL or a certificate in the form of a bank, a certificate for maternity capital or another housing certificate. At the second stage, the purchased object is considered. You may need: an appraiser's report, a purchase and sale agreement, a cadastral passport for the house, an extract from the Unified State Register, etc.

You may be interested in: “Mortgage without a down payment in 2019”

Who is denied a mortgage?

For those who have a bad credit history. Therefore, check in advance whether you have any outstanding loans, both small and large. If legal proceedings have been carried out, a refusal by the bank is possible.

Borrowers with low incomes are also at risk. Stable and sufficient wages are still a relative concept. The main thing is that after paying the monthly payment, there is money left (60%) for everyday needs. To increase your chances of getting approved for a larger amount, you can involve co-borrowers. Their income is also taken into account by the bank when determining the loan amount.

Unclosed loans with large payments also reduce your chances of getting a mortgage. In this case, it is necessary to convince the bank that the income is sufficient for such a financial burden.

Finally, do not try to deceive the bank where you apply for a loan. False information will negate all efforts to purchase a home with a mortgage.

How to pay off your mortgage correctly

It's no secret that the overpayment to the bank for funds taken from it reaches enormous proportions. To save your money, it is better to repay the loan early. There are two possible extinguishing options:

1. Partially early. In case of partial early repayment, the client has the right to either reduce the amount of monthly payments or reduce the loan term. As practice shows, shortening the period can significantly reduce the amount of overpayment. Therefore, some banks do not have this option, for example, Sberbank. To rearrange the payment schedule, you must contact the financial institution with a written application, or submit it through an online bank, if such a service is provided.

1. Complete debt closure. In case of full repayment of the loan, the first thing to do is to notify the bank. The credit institution must provide you with information about the required amount to close the mortgage, taking into account the recalculation of all interest. After the loan obligations are removed, the bank is obliged to issue you a certificate of no debt. The next step is to write an application for the return of the mortgage on your apartment. After a month, the bank employees return you a document with which you need to contact the Federal Reserve System to remove the encumbrance on YOUR property.

And finally, be careful, check with the employees of the financial institution for all the information you are interested in, and do not take the word for tempting offers. Good luck to you.

We increase creditor loyalty

How to increase your chances of getting a mortgage? And is there leverage over unassailable banks? The table shows some simple but effective tips.

Actions in case of failures

Have you been denied a mortgage? This is not a reason to be upset and give up the dream of your own square meters! Here's what you can do:

• find out the reason for the refusal, perhaps it is a trivial error in the documents that can be quickly corrected;

• reapply for a mortgage to the same bank;

• contact another bank, and not just one;

• if the reason for refusal was a low level of income, then you need to look at things realistically and look for a house or apartment at a lower cost. And then apply again, but for a smaller mortgage amount;

• you can increase the down payment, i.e. postpone the purchase and save up a little, or borrow from friends or relatives;

• Another option is to contact an experienced mortgage broker who will help you choose the optimal loan scheme for you and guide you through the transaction. True, it’s not free...

Main stages of mortgage lending

The process of purchasing residential space using bank funds includes several stages:

1. Gathering the necessary information about possible options for mortgage programs.
2. Submitting the established set of documents to the credit institution and checking them by the bank.
3. Making a decision on the borrower. Loan approval is valid for three months.
4. Finding a suitable apartment option.
5. Checking the property for legal purity.
6. Valuation of residential premises.
7. Completing the transaction (signing the contract, paying for insurance).
8. Registration of purchase with the Federal Reserve System.
9. Receive documents confirming your right to the purchased property.

The interesting thing is that no one will give you the borrowed money, unless you take it to a safe deposit box where it will be stored until the registration of ownership rights is completed and the document is submitted to the bank. After which the money will be transferred to the seller for legal use. Although, in some places now a mortgage is issued with the issuance of part of the funds in cash.

conclusions

The opinion that anyone can get a mortgage is not entirely true. To approve a mortgage application, the borrower's candidacy undergoes strict bank control for compliance with the following parameters: age, citizenship, registration, work experience and income level. It is mandatory to check the credit history of a potential borrower - the cleaner it is, the higher the chances of receiving the coveted funds. The presence of unpaid loans, on the contrary, has a negative impact on bank decision-makers. The property itself is also carefully checked.

Individuals who present a full package of documents, with a clean credit history and a high level of income can count on a favorable outcome.

If you are denied a mortgage, you can contact another bank, or try to establish relations with the first bank by correcting the mistakes. Increasing your down payment will likely have a beneficial effect on the outcome of your mortgage application. As a last resort, you can reconsider your requests and choose another, cheaper property.

“Height, weight, age, salary” or what bank requirements the borrower must meet

In order to receive the necessary amount to purchase the “cherished” apartment, the citizen, as well as his guarantors, must meet the basic criteria set by the bank:

• not younger than 20 years old;
• the maximum age at the time of debt repayment is 65 years;
• citizen of the Russian Federation;
• work experience - at least half a year at the current place of work
• total length of service - and at least one year in the last five years;
• stable source of income.

Please note that the presence of co-borrowers and guarantors when applying for a mortgage can significantly reduce the interest rate on the loan. At the same time, the total number of guarantors should not exceed three people. Close relatives can act as guarantors for the mortgage: husband, wife.