Documents for mortgage. A complete list required by the borrower and the seller of real estate

A mortgage is not just a loan for real estate. This is a great opportunity to buy your own home right now, even if the required amount is not enough.

I recently took out a mortgage loan myself and am already living in a new apartment. So I have first-hand information and know what to share. I will talk about the features and nuances of home loans, tell you how to choose a bank to draw up an agreement and give an answer to an important question - is it really profitable to take out a mortgage for a home?

Some banks provide loans for the purchase of “other people’s” mortgaged apartments

Among the general measures applicable to the acquisition of any real estate are:

• It is advisable to make all payments in cashless form in order to have proof of payment;
• It is advisable to request from the seller a certificate of non-use of maternity capital when purchasing a home;
• When taking out a mortgage from another assignor, you can use a letter of credit to carry out the transaction;
• Check the number of owners of the purchased property. The transaction will become legal only with the written consent of all home owners.

Important! Not just any appraisal company can make an appraisal album, but only one of those that is accredited by the bank where you take out a mortgage. Therefore, when choosing appraisers, be sure to check the bank’s list.

Attention! You can learn how to get a mortgage without a down payment from our previous post. Selling an apartment with a mortgage, the risks of the seller with mortgage buyers (under a Sberbank mortgage), features of the transaction procedure, possible disadvantages for the owner.

Before signing it, do not be lazy to read all the points in this section carefully and do not hesitate to ask the bank manager questions if you have any.

In all of these cases, the buyer runs the risk of not returning the money spent on the purchase of housing after canceling the transaction. If in the purchase and sale agreement the price of the residential premises was indicated below the actual price (in order to avoid paying a significant tax), then the buyer, after termination of the agreement, has the right to claim only this amount.

There are several ways to purchase a mortgaged apartment:

1. Purchase with a mortgage loan for the purchase of housing.
2. Purchase without borrowing money.

You won’t be able to sell an apartment quickly with a mortgage, although the bank reduces the seller’s risks here, but at the same time obliges you to comply with the terms of the transaction, which provide for additional steps, for example:

• approval of the apartment as collateral. These actions increase the period for completing a purchase and sale transaction by 5-7 days;
• time frame for collecting the additional package of documents described above (3-5 days);
• obtaining a conclusion from an appraisal company (1-2 days).

Risks of buying an apartment with a mortgage

The remaining part of the money supply will be received by the seller after the assignor is provided with an extract on the absence of encumbrance on the property.

Selling a mortgaged apartment is not uncommon. Buyers often look for this particular option for purchasing housing because of its more reasonable cost. In this case, a certain borrower, in case of inability to pay the full cost of the mortgage loan, decides to sell the apartment, which is pledged to the bank (mortgaged).

In case of failure to comply with the terms of the preliminary agreement, the parties have the right to go to court and the transaction will be concluded forcibly (clause 5 of Article 429 of the Civil Code of the Russian Federation, clause 4 of Article 445 of the Civil Code of the Russian Federation).

How does a bank evaluate a borrower for a mortgage?

A potential borrower submits an application for a mortgage loan to the bank. In it, he provides the necessary information about himself, confirming it with documents. Employees of the credit institution conduct a comprehensive study and analysis of them according to the parameters described above.

The result can be generated in one of two ways:

1. Using automated programs. By entering the initial data using a pre-written algorithm, a solution is obtained.
2. Through the Credit Committee, which reviews a report drawn up by a bank employee based on his analysis.

The latter option is being used less and less due to the large investment of time. An automatic response can be received faster, but the program does not make any concessions and increases the number of refusals.

Most often, a credit institution uses an algorithm that involves assessing each parameter using a point system - gender, age, length of service, credit history, and so on. The likelihood of an application being approved depends on the total score.

It might be interesting!

What should the salary be in 2020 in order to get a mortgage?

Buying a mortgaged apartment for cash

What additional documents will the bank require from you:

1. Technical passport with an explanation (renewal date no more than 5 years);
2. Cadastral passport (date of production no more than five years);
3. Conclusion of an appraisal company (an employee will come and film the apartment) so that the bank can decide how plausible the price for which you are selling the apartment is;
4. Certificate from a psychoneurological clinic.

Any apartment purchased with a mortgage will be pledged to the bank until its owner fully repays the mortgage loan. Often the owner decides to sell such an apartment before he has fully paid off the bank.

Pros:

1. The opportunity to purchase real estate without having your own funds to pay 100% of the cost.
2. You don’t have to be particularly afraid of scams on the part of the seller, or the sudden emergence of a third party’s rights to own an apartment, since the object will be pledged to the bank, which will additionally check everything.

There are already quite a lot of such objects on the market. Ekaterinburg realtors shared their observation: when an agent makes a selection of apartments that meet the requirements of a client-buyer, up to half of such apartments turn out to be collateral.

Experts recommend:

• obtain an extract from the house register to make sure that no one is registered in the home;
• you should protect yourself with a preliminary purchase and sale agreement so that the seller cannot change the terms of sale;
• ask if the bank has any preferential conditions, for example, a reduced interest rate, expedited processing and a minimum down payment;
• all contracts must be certified by a notary - this is an additional guarantee;
• register the agreement in the registry before full payment of the transaction.

If, after such a thorough check, complications still arise, they will be resolved by the insurer’s lawyer, including in court.

What documents must the borrower submit in order for the mortgage to be approved?

Every borrower thinks about what documents he must submit to the bank to obtain a mortgage. This list consists of:

Applications on bank letterhead.

You can find it on the website of any bank or get a form at a branch.

Copies of all pages of the civil passport.

Everything, even blank pages, must be attached to the application form.

Original and copy of the certificate in form 2-NDFL.

The form can be obtained from the company’s accounting department or from the local tax office.

Original and certified copy of the work book.

Copies are certified with a full description of the position and full name of the person responsible for certifying the copies.

For persons working under a contract, the list of documents for a mortgage is supplemented with a copy of this contract and the original. Men of military age will be required to have an original and a copy of their military ID. If the applicant’s age does not allow him to require a military ID, then he must provide a pension certificate and copies of all pages. You need to make copies of all pages, including even blank ones. Attached to this certificate are also certificates of the amount of pension.

TOP 7 risks when buying an apartment on the secondary market

The report provides full information about living conditions in the area in which the apartment is purchased, about the condition of the house and the apartment itself (including color photographs of it), along with the sale price of the apartment, a comparative analysis of similar proposals and data on the implementation of similar apartments and their prices in previous periods.

According to experts, only 2–4% of the total number of real estate purchase and sale transactions are considered invalid. This percentage is even lower if the apartment was purchased with a mortgage, which means it underwent a multi-stage inspection. Nevertheless, any housing, including mortgage housing, can become problematic if at least one important nuance is missed when purchasing it.

The amounts in each type of cost differ very significantly from each other. The bank approves the loan based on the market value, because this amount is the benchmark for the bank’s return on investment in the event of the buyer’s insolvency.

The only serious danger that a mortgage loan can pose is the possibility of not paying off the debt. One of the distinctive features of mortgage lending is the obligatory pledge of the purchased apartment and the mandatory down payment.

Firstly, in this case there are insurances that banks so stubbornly “impose” on borrowers. If the reasons for your insolvency fall under an insured event, insurance payments will cover all or part of your mortgage debt. An insured event may be the death of the borrower (or one of the co-borrowers) or, for example, loss of ability to work (disability). As in the first case, the buyer gives the seller money to pay off the mortgage debt, a purchase and sale agreement is signed, which is IMMEDIATELY sent to the MFC. When the agreement enters the Rosreestr, it suspends the registration of the transfer of rights to the apartment on the grounds that the apartment is pledged. But when the seller pays off the debt and the bank removes the collateral, Rosreestr will register the transaction.

Usually, borrowers themselves turn to the bank with a request to put their apartment up for sale. This decision to repay the loan is beneficial to the banks, so they meet the debtors halfway. You can see what offers exist on the market on the Internet by searching for “Collateral Property Showcases.”

The assignment of the right to claim an apartment is used when it comes to housing in a new building where the seller has not yet moved in.

Mortgage for families with children

A preferential mortgage, which allows families with a second or third child to receive a loan at 6 percent, has been on the market since 2020, but few have taken advantage of it. As of April 2020, VTB Bank issued 1,700 loans throughout the country under the program. For one of the main players in the mortgage lending market, this is a very small result.

There is an explanation for the small number of child mortgages issued. Firstly, families immediately after the birth of a child have other concerns, and at first they are not in the mood for obtaining a loan. Secondly, just because a family has the right to use this product does not mean that the bank will approve a loan. As with any loan, the bank first evaluates the borrowers. And if the family does not meet his requirements, the loan will be denied. At the same time, it is difficult for families with recently born children to meet the bank’s requirements. With the birth of a child, income decreases because the mother goes on maternity leave. This explains the high failure rate for the program.

Another reason holding back the growth of mortgages at 6 percent per annum is that to obtain a loan, a family needs to have 20 percent of the cost of the apartment for a down payment. At the same time, most banks do not allow you to make a down payment on a “children’s” mortgage using maternity capital. But there are exceptions: instead of using maternity capital as a down payment under this program, borrowers from Ak Bars Bank can use it.

Seller's risks when selling an apartment with a mortgage

A fairly typical situation: the buyer examined a certain number of apartments on the secondary market and chose three or four that were most suitable for him. So, all of them may turn out to be collateral. And then a choice arises - to buy something that he does not like, or to agree to buy a mortgaged (but suitable for him) apartment.

Even if you buy an apartment that is mortgaged from the owner, you must obtain the consent of the bank. This will save you from possible problems in the future. It is better to coordinate each stage with the bank and lawyer.

This can only be done with the consent of the bank and the risks for the buyer increase many times: the buyer will need to independently take measures to remove the encumbrance; there may be several obstacles in the process of this procedure:

• Double pledge - given the seller’s problems with solvency, no one can guarantee that the apartment will be pledged to another bank, legal entity or individual - in such circumstances the buyer will not be able to remove the encumbrance;
• Arrest or prohibition of registration actions for an apartment arising as part of securing a claim against the seller - you can request information about this, but its relevance on the day of the transaction is not always reliable;
• Inaccurate calculation of funds - the calculation of funds intended for the buyer to pay off the mortgage is not always accurate. Thus, banks often include the amount of overdue payments and fines in the total debt, informing the parties to the purchase and sale agreement about this shortly or on the day of the transaction, and in some cases they simply write off the required amount from the account to which the buyer’s money has already been received. Sometimes the amount of accrued fines and penalties can reach such levels that the amount due to the debtor-seller after repayment of the debt is significantly reduced.

There are different schemes for conducting transactions for the acquisition of such apartments. The first scheme assumes that redemption from collateral is possible only if the buyer transfers funds to the seller.

As experts note, mortgaged apartments today are trading on the real estate market today almost on a par with “clean” ones.

Now the couple is forced to rent housing in Moscow and pay a monthly mortgage. However, from the very beginning, as soon as it became known about the occurrence of an insured event, the insurance company refused to pay the insurance, despite the fact that the Chalaevs took out comprehensive insurance, including title insurance against loss of property rights in the event of claims from third parties.

Financial transactions and stages of the transaction are controlled by the credit institution. The documents (preliminary purchase and sale agreement, DPA) are prepared by the bank according to its own template, which eliminates part of the costs of using the services of lawyers.

The court ordered the last sellers, from whom the apartment was transferred to the Chalaevs, to return the money to them, but they categorically refused to do so. The bailiffs had to seize the apartment of the unfortunate sellers, which turned out to be their only home, which means that according to the law it cannot be taken away. The circle is closed.

After registration, all rights to the apartment will be transferred to the new owner. This course of action will help avoid inaccuracies. It is necessary to carefully consider the contract plan so as not to lose the money invested.

Purchasing an apartment with a mortgage is a reliable and affordable option for acquiring property at an affordable price. To minimize risks, you need to carefully consider every action and consult with experienced lawyers.

The buyer’s risks when buying an apartment with a mortgage are not on the surface due to the reckless trust in banks that take the housing purchased as collateral and in case of danger the consumer is left with an unpaid debt. But this is the most basic and serious trouble, the reasons for which we will also consider in the article.

Another common fear of inexperienced borrowers is that the bank will suddenly demand urgent repayment of the entire amount of the debt, and if this is impossible, it will sell the collateral property under the hammer.

Requirements for borrowers for mortgages in banks

The entry of a credit institution into a relationship with a borrower is a voluntary action. Therefore, each of them has the right to choose clients according to various parameters. The law does not oblige lenders to issue mortgage loans to everyone who applies.

The lists of requirements in banks are different, the most popular ones can be identified:

1. Citizenship.
2. Age restrictions.
3. Registration and residence addresses.
4. The period of work in the last place and for the entire career.
5. Amount of salary and/or other types of income.
6. Undamaged credit history.
7. Number and quality of co-borrowers and guarantors.

Let's explain each point.

Why do they inflate the cost: diagram

Today we’ll talk about overestimating the cost of an apartment with a mortgage: the risks of the seller and the buyer. You will learn what overvaluation is and when and under what circumstances it should be done, and when it is better to refuse a dubious transaction. We will also tell you about the entire overestimation mechanism.

However, as practice shows, the insurance company can evade responsibility altogether, leaving the borrower alone with the bank. Proof of this is the sensational story of the young married couple Chalaev. In June 2008, the Chalaevs bought a one-room apartment in Moscow with the help of a loan. On the recommendation of the bank, the Chalaevs insured against loss of property rights in. If the mortgaged apartment does not have minor co-owners, and the buyer pays the entire amount in cash, then the parties can complete the transaction themselves, without the help of a realtor, lawyer or notary. As lawyer Ksenia Shashkova explained, such a transaction can take place according to one of two schemes.

Mortgage refinancing on favorable terms

When issuing approval to a borrower to refinance a loan, banks must check whether the borrower has had any defaults in the past. Indeed, if the borrower paid the loan poorly before, why does the new bank need such a client. Loan restructuring often became an obstacle to refinancing. If a borrower approached the bank several years ago to temporarily reduce payments due to the fact that he was in a difficult life situation, then it was impossible for him to refinance the mortgage. Now a number of banks allow refinancing in such conditions. The presence of a loan restructuring is no longer a reason to refuse to refinance a mortgage.