How to get a mortgage for an apartment: where to start, instructions, requirements

After the mortgage is issued, the real estate is transferred to the borrower with the right of ownership, but not full disposal. The bank holds the object as collateral so that, in case of delay, it can be sold.

Property owners do not have rights to dispose of property in full. The credit institution must agree to the property being sold or donated if it is encumbered with collateral. To reduce the risk of loss of profit, the bank sets conditions for borrowers to obtain a mortgage.

Main types of mortgages and mortgage lending

Mortgage includes many banking programs and conditions for them. Classification of mortgage lending according to the following characteristics:

Purpose of taking out a loan;
Currency of receiving funds;
Type of property being purchased;
Calculation of regular payments.

The list continues with banks depending on the availability of programs. The types of loans also differ depending on the status of the recipient. Financial analysts identify mortgage groups based on the type of collateral. The following groups are distinguished:

Lending secured by existing property;
Lending secured by the property being purchased.

If you have your own home, the borrower has the following advantages:

Transferring money for a mortgage

Oct 28
2014 Contents
:

The main stages of transferring money for a mortgage
Safe money transfer schemes
Adviсe

Transfer of money is a crucial moment in any contract . In real estate transactions, especially those purchased with a mortgage, this issue worries both future and current apartment owners. How and when settlements occur in the “buyer-bank-seller” chain is the topic of the article.

The main stages of transferring money for a mortgage

1. Placing the amount of the borrower's down payment on a bank deposit. 2. Making an advance/deposit on the purchased apartment or house on credit (a receipt is issued and submitted to the bank). 3. Transfer by the bank of the principal amount (borrowed funds) to the borrower’s account. 4. Transfer of funds for the property from the buyer’s deposit to the seller’s account. 5. Transfer of the certificate amount from the budget to the seller’s account (if there is no down payment and forms of government support are used).

Safe money transfer schemes

On the day of the transaction and until the mortgage is registered, the bank controls the flow of funds between the buyer and seller. In case of deviations/violations of the purchase and sale agreement or loan agreement, the bank “freezes” access to the accounts. There are two main schemes for secure money transfer:

use of an individual bank safe/deposit box (the most common option);
transfer of funds using a bank letter of credit* (most often used to purchase real estate in another region)

*– an irrevocable instruction to the bank to transfer funds to the seller’s account upon provision of certain documents.

Let's look at the procedure for applying for a mortgage using an individual bank safe:

1. The apartment purchase and sale agreement is signed. 2. A tripartite lease agreement for an individual safe is concluded (buyer-seller-bank). The conditions for access to the cell are negotiated. 3. The buyer withdraws the amount of the down payment from his deposit. Cash is placed in a safe deposit box (buyer, seller and bank employee are present). A receipt is issued for the seller to receive this money. 4. A mortgage agreement and a property pledge agreement are signed, and loan funds are credited to the buyer’s account. 5. The received amount is withdrawn from the account and placed in a safe deposit box in the presence of the buyer, seller and bank employee. A new receipt is prepared for the full amount stored in the safe. Documents for receiving a down payment and advance payment are cancelled. 6. The signed agreements and mortgage are submitted for state registration of property rights. 7. If the transaction does not take place for some reason, access to the individual safe can only be opened to the buyer in the presence of a bank employee.

Required:

buyer's passport;
key and rental agreement for the cell;
statement about the fact of termination of the transaction.

8. If the transaction is successfully completed, access to the cell can be opened only to the seller. To do this you need to present:

seller's passport;
key to an individual safe and rental agreement;
a receipt from the seller confirming receipt of the full amount of funds;
originals or copies (certified by a notary) of documents with a note indicating the existence of a mortgage in favor of the bank.

The scheme for transferring money using a letter of credit is similar to that described above.
Key points: 1. Agreements are signed to purchase an apartment on credit.

2. The bank credits the loan funds to the buyer’s account. 3. The buyer opens a letter of credit and transfers the mortgage amount and down payment to it. 4. The seller receives a letter indicating the amount placed on the bank's letter of credit. 5. If the transaction is registered, the seller provides:

passport;
letter confirming the availability of funds on the letter of credit;
documents indicating the existence of a mortgage.

In this case, the bank transfers the funds from the letter of credit to the seller's account.

Adviсe

1. Remember: when purchasing or selling property with the help of a mortgage, the risk of being left without an apartment or money is minimal. The bank values its reputation and is interested in the correct execution of the transaction. 2. The service of renting a safe deposit box can be provided free of charge when applying for a mortgage loan. Please check this expense item with your loan officer in advance. 3. Advice for property sellers: when receiving cash, you can open a “Demand Deposit” account in the same bank and withdraw the amount when required and without witnesses.

Special mortgage lending programs

In the Russian Federation, in addition to the basic classic mortgage programs, there are also special ones. To receive them, submit an application to a credit institution or on the official website. A distinctive feature of this type of mortgage lending is government support. Part of the money for the service is transferred from the state treasury.

Mortgage with state support

Banking institutions offer loans with government support to solve problems with improving their housing situation. The programs are aimed at the socially vulnerable population of the country. These people are:

Mothers raising more than two children;
People from an orphanage;
Employees of budgetary authorities with low earnings;
Persons with disabilities;
Other Russian citizens who, by law, require state assistance.

To be able to obtain a social mortgage, citizens should register with the authorized body to improve their housing situation. State assistance is offered in the following types:

Subsidizing aimed at repaying existing debt, as well as as an initial payment;
Lower mortgage interest rates;
Sale of real estate at a reduced price.

Citizens do not have the right to choose assistance from the state. Local authorities establish at the legislative level the possibility of obtaining loan relief.

Military mortgage

Military personnel participating in the savings mortgage system can apply to large banking institutions for the Military Mortgage program. This type of lending is carried out using money from the Ministry of Defense.

An employee who works in a military unit has a personal account, which receives a subsidy intended for the purchase of residential property. Two years ago, this category of citizens received the right to choose the region of purchase of property and the type of object.

Mortgage for a young family

Another type of preferential financial program in banks is a mortgage for a young family. The program was planned to end in 2020. But after amendments were made to the legislation, it was extended for another 5 years.

You can get the opportunity to use the preferential program for purchasing housing with borrowed money:

husband or wife who is under 35 years of age;
a family waiting for improvements in living conditions from the social service.

According to the program, it is possible to transfer subsidized funds for a down payment on a mortgage. The state can offer a family no more than 30% of the cost of housing.

Mortgages for young professionals

The program is preferential and helps in the acquisition of residential property by employees of budgetary organizations who are under 35 years old. Sberbank operates a program called “Home for Teachers”. For persons who can participate in the program, the bank guarantees a lower interest rate with other preferential conditions.

Borrowers planning to use the social loan program should be aware that regional and federal benefits developed by local authorities apply. By contacting the social service, you can find out about the availability of benefits for each category of persons.

Requirements for borrowers

To receive a loan to buy an apartment for a family with children from Sberbank, clients must meet the following requirements:

Age during the period of participation in the program should not be lower than 21 years and higher than 75 years (at the time of repayment of the full debt on the bank loan);
Having at least six months of work experience at your last place of work. Over the past five years, the total work experience must be at least twelve months;
Availability of citizenship in the Russian Federation. Loans are not provided to foreign citizens;
Each spouse must have Russian citizenship;
The spouse automatically becomes a co-borrower on the mortgage . It should be noted that the level of income of the co-borrower is not taken into account. The number of children and age are also not taken into account;
The second parent of a second or third child is also allowed to become a co-borrower if he is also the second or third for him. At the same time, the parents may not be officially married;
If a marriage contract was concluded between the spouses, according to which property obligations are divided, then the husband or wife cannot act as co-borrowers from each other.

Conditions for issuing a mortgage

The general condition for a mortgage, which is available in almost every program, is the presence of Russian citizenship with permanent registration in the city where the loan was received and the housing was purchased. But at a higher percentage, you can get money to buy housing for citizens of the CIS countries or in another region. This right is enshrined in law.

Man or woman is a secondary role. This factor depends only on programs where maternity capital is involved. A higher education diploma is not requested, but this point will be clarified when filling out the application form. At a demanding level, credit institutions do not stipulate requirements for a diploma in their programs. But the level of reliability will be increased, since it will be easier for a specialist to find official employment.

Approximately 60% of disapprovals concern citizens who indicate individual entrepreneurship as their only source of income. The maximum chance of approval can be obtained if you have a stable job in large organizations and government agencies.

Age

All banks issue mortgages to citizens who have reached full working age. The optimal age for applying for housing money is 21-23 years old. Pensioners are rarely granted loans due to the increased risks of accidents and delays due to lack of funds.

See the same topic: Documents required for the return of mortgage interest: current list [y] year

The upper limit of lending in the Russian Federation is calculated at the end of mandatory payments: by the age of 65-79. Sberbank clients are guided by the age of 75 years. This means that at the age of 55 you can take out a mortgage for 20 years, but subject to life and health insurance.

In the case of a military mortgage, different rules for calculating credit conditions apply. The period for pension accruals for military personnel by law begins at 45 years of age. Until the benefit of state security, mortgage payments can occur. Sberbank, VTB and other large lenders have special programs for the military.

Age data is not the main determining factor when checking an application and making a decision. Bank employees check the following indicators: stable earnings, available property for collateral, availability of guarantors and co-borrowers.

Seniority

The condition that applies in the process of obtaining a loan is work experience over the last 5 years. An applicant who satisfies the lender's requirements must work in one enterprise for at least 6 months per year.

The total work experience over five years must be at least one year. Persons receiving wages through a bank may not have to prove they have a job, since they have more benefits and a lower rate.

Income level

The first condition that helps the bank determine the interest rate, the loan amount and distribute the payment schedule is the client’s income. Having official income may not be enough to fulfill your obligations.

The law sets the amount of mortgage payments: they should not exceed the total income by 50%. Your money should be enough to meet your personal needs.

The confidence of the financial institution is increased by documenting the availability of sources of income. These can be: assets, securities, bank deposits, rental funds.

When considering applications from citizens with a questionnaire and documentation, the following documents are taken into account:

Income of the husband and family, since spouses are automatic co-borrowers;
Earnings of other relatives involved as guarantors or co-borrowers;
Other income. The funds received are officially confirmed by the lease agreement.

In the process of applying for a loan, credit institutions evaluate, in addition to the level of income, former loan payments. If there were problems in the payment of loans in the form of delays and delays, the bank will refuse to provide money.

If the mortgage, for which there were minor delays, has already been repaid, the client can prove to the lender that the late payments arose for reasoned reasons. These include: serious illness, family circumstances and technical problems with the bank.

Marriage relationships and the presence of a co-borrower

There is a greater chance of trust in married couples. A wealthy family is one where both spouses work, raise a child, and regularly pay off existing loan debts.

Families raising more than one minor can use maternity capital. After the birth of the second child, the family is entitled to a certificate with a large amount for certain purposes. Government assistance funds are used as a down payment to pay off existing debt.

Having a wife or husband is an advantage when applying for a loan. If one of the spouses who submitted the application is on maternity leave, or has more than one dependent registered or living together, employees of the credit institution may refuse to issue a loan.

Having co-borrowers increases the likelihood of receiving approval from the bank. Co-borrowers represent a person who has the same obligations to repay the loan as a co-borrower.

When calculating the maximum loan amount, the bank takes into account the income of both citizens. The borrowers in 70% of cases are husbands, wives or other relatives.

Credit term

The terms for obtaining a housing loan are chosen by the applicant and agreed upon separately. During this period, loan payments are made in full.

The following indicators influence the calculation of deadlines:

Borrower's income;
The amount of the loan issued;
Age data.

The maximum term offered by Sberbank is 30 years. Some credit institutions carry out transfers of funds up to 50 years. The minimum period for which a mortgage is issued is 10 years. Less common are programs that allow you to purchase housing in five years. This applies to programs with commercial premises.

If an amount is required for a shorter period than the lender offers, a consumer loan is issued.

An initial fee

The amount of own savings required to be paid for a mortgage apartment differs according to the requirements of the bank.

One lending institution may offer different mortgage programs that offer different down payment amounts.

Average down payment requirements range from 15% to 30%. Sberbank requires an amount of 15%. If the applicant uses the “Young Family” program, he needs to pay a payment of 10%. Families raising children pay not 35%, but 30%. If there is collateral, a down payment may not be required.

What do you need to get a mortgage at Rosbank House?

If you meet the bank’s basic criteria, it’s time to collect the necessary documents and send your application to the bank for consideration. Here is a list of what you need to take out a mortgage at Rosbank House:

passport;
certificate 2-NDFL or according to the bank form;
a copy of the work book;
A completed application form.

An important condition for mortgage approval is that the borrower has a down payment (at least 15% of the cost of housing when purchasing an apartment). Rosbank House has a special program for clients who cannot bring documents confirming their income.

The organization operates in Moscow and other cities of Russia and specializes in mortgages. The conditions for obtaining a home loan are more attractive here than in many other banks. For example, Rosbank Dom has a solution for those clients who do not yet have their own funds for the first payment - this is the bank’s housing program “No Down Payment”.

Interest rate and payment procedure

The average interest rate at a bank is 13% per year. If the borrower receives income through the bank, the interest is reduced by half the position. If a little-known bank offers a lower interest rate, falling below 9 points, you need to read the terms of the agreement. Financial institutions require higher fees.

Monthly payments are made in the following options:

Differentiated;
Annuity option.

In the first case of payments, the payment amount is gradually reduced, in the second - payment is made in equal parts. In the Russian Federation, large banks use annuity payments.

Required documents

An applicant wishing to obtain a mortgage for a secondary or primary home must provide a complete package of papers to the bank in a timely manner. Documentation requires proper execution in accordance with the law, as well as verification by bank employees for authenticity.

Classic list of documents:

Application for a loan for an apartment;
Documentation proving the identity of a person with details of children and spouses;
Confirmation of registration of marital relations;
Documentary confirmation of the income of the citizen and his family;
Work book in the form of copies;
Documents confirming ownership of real estate or a vehicle that is pledged.

Additional paper requirements will depend on the program.

Insurance

Russian mortgage legislation imposes obligations on property insurance. Banks are introducing additional policy conditions.

For this purpose, credit programs begin to operate under the terms of insurance of a person’s life, his ability to work, as well as real estate that the bank has taken as collateral. When purchasing a comprehensive policy, the amount of total payments is reduced. If a person refuses to arrange for property protection, the bank will increase the interest rate or refuse the transaction.

Sum

In the process of calculating the amount allowed for approval, the lender examines the data submitted by the client and the following characteristics:

Documentation confirming income: information about earnings in accordance with Form 2 of personal income tax, a civil contract and other papers confirming the stability of income. Confirmation of official and unofficial resources is allowed.

Look at the same topic: Are social mortgages given to low-income families in [y] year?

Confirmation of official income will be required, as this data allows you to determine the amount of the loan. According to the conditions specified in the law, the loan payment should not be higher than 40-60% of the total family income. The following is also defined.

Age data, since pensioners or students will not be able to afford a large amount;
Expenses for each person, which includes other loans;
Availability of the entire package of documents from the citizen. If there is no official information about income, loan money is provided under another program;
Are there co-borrowers and/or guarantors;
Price for the purchased property;
Policy.

The percentage and amount increase if the client does not meet at least one point.

Minimum and maximum period

Loan terms depend on the age of the borrower and his financial situation. The applicant independently indicates the deadlines he needs. Sberbank offers a loan for 10-30 years. For terms of 5 years or less, it is recommended to take out a consumer loan. The term is also taken into account when applying for a military mortgage.

An initial fee

First payments are an advantage for both parties. The bank has a minimum guarantee of repayment of the money lent, and the borrower has a reduction in the terms, amount and interest rate of the loan.

The money transferred for the initial payment differs according to the requirements of the credit conditions:

If property is purchased in a new apartment building or an accredited developer offers housing, the contribution will be 10-20%. The same rule applies to the secondary real estate market;
When purchasing a residential building, the borrower will need to deposit at least 15% under the bank's conditions;
If a simplified mortgage is issued using personal documentation, the citizen must pay about half of the amount required for the loan.

Only large banks offer no initial payments and low interest rates. Maternity capital and military payments are suitable as money. In other cases, the lack of initial payment will affect the rate.

Mortgage transaction fees and expenses

Before applying for a loan, the applicant’s personal capabilities are assessed. The bank may charge the following additional interest:

For internal and external transactions on bank accounts;
For opening a letter of credit account;
For obtaining personal or property insurance.

If a citizen refuses to conclude an insurance contract, the loan rate will be increased by approximately 2-3% per year, which is a serious overpayment.

Some banks offer to issue an insurance policy at a bank branch. Sberbank offers verified insurers without additional documents.

Interest rates

Mortgage interest is divided into two groups: for preferential applicants and on a general basis. Beneficiaries often receive no more than 11%, and other citizens - up to 15%.

How to get a mortgage

The format is as follows:

Selecting a convenient banking offer.
Selection of real estate: new or with the owner.
Submitting an application to a financial institution.
If the transaction is approved, the necessary documents are submitted.
Registration of property in Rosreestr.
Registration of a policy.
Receiving funds from the bank.
Making payments according to schedule.

The steps may vary depending on the program. When using maternity capital, you need to ask for help from the Pension Fund.

Mortgage repayment

You can repay your mortgage loan as planned every month in equal installments or by gradually reducing the amount. The first payment option is the most acceptable for the debtor.

You can repay your mortgage early in parts exceeding those indicated in the schedule, as well as in the full amount. Fines and restrictions with commissions are illegal actions of the bank. If the delay is more than three months, the bank files a lawsuit. The property will be seized, after which it will be sold.

Is it profitable to pay off your mortgage early?

15% of bank clients who independently calculate the amount of overpayment before signing an agreement do not want to sign an agreement. Others are considering early repayment. The second case brings a loss for the bank. According to the annuity type of payment, a person slowly repays the commission, and then the body of the debt.

The loan amount itself will be slightly reduced over the first few years, which causes clients to refuse further payments. If the loan is repaid early, the debt amount decreases more significantly. Banks illegally prevent early repayment, as unscheduled payments deprive profits.

Advantages and disadvantages of a mortgage

Mortgage lending has the following positive aspects:

A new apartment or house purchased with bank money becomes the property of the applicant. The bank immediately transfers the money to the seller's account to complete the purchase and sale.
The cost of housing changes every 6 months, and the ruble depreciates, so the purchase of real estate is considered a profitable investment.
The law states that in case of early repayment of debt, a financial institution cannot prevent this through fines. A citizen can at any time make a payment greater than indicated in the schedule. The interest rate will be charged on the remaining amount.
The rent for the purchased property can be compared with regular loan payments. The bank may allow you to rent out your property.
If the loan rate for real estate in another credit institution is reduced, the client can refinance - take out a loan for a loan.

The loan product also has disadvantages:

High price. In European countries, mortgage lending does not exceed 5–7% per annum on classic terms. In Russia, an amount of 11–15% of the debt may become unaffordable. Over 20 years, the client overpays in such a way that the amount of two apartments is reached.
High income above average. Banks require information on all sources of income, but interest and terms are calculated only according to official ones.
The moral side due to a sense of obligation. As well as restrictions on the sale and exchange of property.

Also, not all citizens agree with the insurance requirement. The bank often imposes unnecessary insurance services on individuals, which can be canceled by submitting an application.

Legal norms and participants in the process

In the Russian Federation, housing lending is regulated by a whole list of laws that you should familiarize yourself with before signing an agreement with the bank. Another option is to get legal advice from a lawyer.