Is it possible to get a mortgage in another city or region: 3 options

The issue of buying an apartment in a city other than where you live and/or register can be quite acute for many reasons:

Changing of the living place
Work in another region
Buying a home for children
Investments in real estate for rental

But whatever the reason, almost everyone is more concerned with the question: how to do everything right? A mortgage in another city is exactly the case when it makes sense to entrust the transaction to a large real estate agency with a wide federal network. But only if the potential mortgage borrower at the time of the transaction is not in the city in which the property is located.

If the transaction is just taking place in neighboring cities and the buyer is ready to come to the transaction, then you can do it on your own; it will be enough to coordinate everything remotely and come to sign the loan agreement. Things are relatively simpler with primary registration in a facility accredited by the bank to which the application was submitted. Since a third-party seller, who is an individual who is able to make his own adjustments and wishes within the terms of the transaction, will not participate in the coordination.

Where to start choosing housing in another city?

Modern means of communication make it possible to purchase housing in any city in the Russian Federation quite safely and comfortably. They also make it easier to choose housing, since you can remotely select several suitable properties at once and find out everything about them.

The only stage that is not required when purchasing a home (more relevant for resale homes) is inspection of the apartment . This is the main risk associated with buying an apartment in another city. If you need to come to the transaction (not all banks allow you to conduct the transaction remotely), then you should consider the opportunity to come and inspect the property. Naturally, if you buy an apartment in another city, you should pay much more attention to the preliminary selection of the property in order to save time.

You will need to carefully weigh all reviews and recommendations for the property; it makes sense to use social networks and word of mouth. Those who already live in the area where they plan to purchase or are already primary buyers are usually willing to share their impressions.

If the goal is to save money, then you can carry out the transaction without intermediaries, but in this case additional risks fall on the buyer; it is advisable to at least have a good understanding of the prices and features of the city where the housing is purchased.

Everyone must evaluate their own strengths and capabilities in this matter. But it is worth remembering that even if you decide to apply for a mortgage in another city with the help of an intermediary organization, its activities should be evaluated, and reviews should only be trusted on third-party resources.

Realtors are focused, first of all, on the commission from the transaction, so you definitely shouldn’t relax and lose control over the purchasing process. They will really be able to offer options and give tips on the features of housing in another city. But you should not believe in special conditions and discounts from banks and insurance companies when the transaction is fully completed. In parallel with the work of the agency, it is worth consulting with credit and insurance organizations on the cost of services.

If the discount in the rate is 0.5-1 p.p. from the bank, when contacting through an intermediary is still possible (but not so often, since the bank must pay the agency a fee for the referred client), then the insurance company’s tariff will include a premium for the intermediary, in addition to the bank’s commission.

So, for example, with mortgage insurance for VTB24, the credit institution’s commission is 45%, when applying through an intermediary, another 15% goes to him, and the tariff will already take into account 60% of the commission. Thus, turning to intermediaries does not guarantee a profitable deal; in any case, you need to navigate the conditions yourself so as not to overpay.

Features of intercity mortgages in Sberbank

Sberbank has the widest network of branches throughout the country and an effective communication system between them. A bank office can be found even in a small village on the outskirts of the regions. In this regard, obtaining a long-distance mortgage here has some features:

The main requirement for the borrower in terms of place of residence and registration is registration in any subject of the Russian Federation. Temporary registration without permanent registration is allowed.
A special convenient service “DomClick” has been created for clients, with which you can:

make preliminary calculations using a mortgage calculator;
select an apartment from the existing database;
arrange a housing assessment service;
insure real estate;
register housing rights through the electronic document submission function (bypassing the MFC and the Registration Chamber);
use the secure payment service (remotely, without visiting the bank in the shortest possible time) between the buyer and seller;
make an urgent order for an extract from the Unified State Register for a specific property.

When applying for a mortgage in another city through DomClick, the borrower does not have to come to send documents, conclude a transaction and pay the home seller, since most transactions are available through remote channels.
All of the listed services are paid, but these costs will certainly be significantly less than those that the client will incur when moving from one city to another.
Mandatory presence will require the signing of key documents with the bank - a loan agreement and a mortgage agreement (in any branch).

A mortgage in another city through Sberbank is carried out as follows:

You can apply for a mortgage in your place of residence through the domclick website or through a bank branch or partner.
After approval, you find a housing option and prepare a complete package of documents for it (if the client cannot come to the place of purchase himself, then this is done by a trusted person).
Documents are provided to the department at the place where the property was purchased.
Once the property is approved, a transaction date is set.
The loan and insurance agreement are signed either at the place of purchase of the property (in which case the borrower must come) or at the place of residence, but then there must be an electronic registration of the transaction.
After signing all the documents, the transaction is registered with the justice authorities (if the borrower needs to go home without waiting for the registration to be completed, then you should activate the fast settlement service, which allows you to immediately sign an application for a loan and transfer money to the seller automatically after confirming the registration information transactions. If the borrower conducts the entire transaction remotely, then it is necessary to connect the secure payment service from Sberbank).
Issuing a mortgage and transferring money. If a new building is purchased, the money is issued to the borrower and transferred to the developer. In the secondary market, immediately after signing the mortgage agreement, the money is deposited in a safe deposit box or through a secure payment service into a special account. In this case, there is no need to come to the transaction additionally.

What should you pay attention to when buying a home in another city?

If we talk about buying a secondary home, preparation for the transaction takes on average one month. In this case, the owner will only have to collect the documents required for the transaction for 1-2 weeks and coordinate them with the bank.

If you are buying a home in a foreign city, then the main thing is to be attentive, and also have a good realtor

When purchasing a primary property, you should pay attention to which banks have accredited the property under construction; the more credit institutions that have verified it, the better.

It is worth paying attention to the presence of leading credit institutions in the country among those cooperating with the developer. According to reviews, if there is Sberbank or VTB24, then the object is trustworthy. In addition, the wide federal network of these banks allows you to receive approval in one city and complete a transaction in another. With the help of VTB 24, a transaction can be carried out as remotely as possible, but in Sberbank this is more difficult.

The difficulty of obtaining a mortgage in another city for a bank is that the solvency will be assessed by a division in the city where the borrower is located and works, and the bank branch located in the region where the object is purchased will approve the object and formalize the transaction.

What does a bank pay attention to when getting a mortgage in another city?

The bank will also evaluate the purposes for which an apartment is purchased in another city; if the purpose is a move that involves a change of job, then this is the most difficult option. When assessing solvency, a credit institution relies on the fact that this solvency will remain.

Bank conditions for purchasing housing in another city with a mortgage

And if the borrower buys an apartment in Vladivostok with credit funds, quits a high-paying position in Moscow, and moves to the other side of the country for some personal reason, then there are no guarantees that there will be no problems with paying off the debt to the bank. There is a high probability of failure.

In such cases, it is recommended to state that the apartment is not being purchased for the purpose of moving, but for investment or relatives. The mortgage term is long, a sufficient number of borrowers pay the mortgage, having long ago changed their place of residence, although neither a change of job nor a move was planned at the time of the transaction. So moving is not a violation of the terms of the loan agreement, the main thing is to avoid delays and there will be no problems with this issue.

The option is much simpler - when the mortgage is issued in the region where the person is employed. Many banks require registration in the region of registration, but the majority require registration in the region where the bank operates. These conditions are just for the case when a client has been working in one city for a long time and stably, but is registered in another.

In this case, work experience will play a decisive role - if this is some kind of temporary earnings or a permanent job change, then the loan will not be approved. If the goal is to buy an apartment and register in the city where the mortgage is issued, and the job is stable, then the likelihood of approval is high. Longevity reduces the likelihood that a borrower will lose his job, be unable to pay his mortgage, or move out of town.

A mortgage is still a secured loan, but the bank is still not interested in the deterioration of the quality of the loan portfolio, litigation and the sale of collateral.

If the borrower has a positive credit history, stable income (sufficient to service the mortgage), and a large down payment, then registration in another city or region will not play a decisive role.

In addition, there is an option when the borrower chooses an apartment not in the city where he is registered, and not in the city where he works. For example, in one of the resort towns for rent. This option is quite acceptable for the bank, as it implies an improvement in the client’s solvency. The main thing is that the credit institution has a branch in the city where the apartment is purchased. The likelihood of approval will be higher if you already own real estate in that city.

Loan application process

Instructions for applying for a mortgage are similar for different credit institutions. In the case of a loan for housing in another city, the client needs:

submit an application on the bank’s website, indicating the city of your registration (then, when talking with bank employees, specify that you want to purchase real estate in another region);
wait for a decision on the application;
collect a package of necessary documents if the decision was positive and choose housing if not chosen;
Discuss with the manager the scheme of the transaction, if necessary, issue a power of attorney for the relevant actions requiring your personal presence;
conclude an insurance contract (obligatory for the collateral, life and health – optional);
sign a loan agreement and receive money (wait for the funds to be transferred to the seller’s account).

All agreements (credit, insurance, purchase and sale, transfer of property as collateral) are signed personally by the borrower. This is usually done at the location of the property.

What documents are needed?

When applying for a mortgage in another city, you must provide a passport, SNILS, salary certificate and a copy of your work record. It is advisable to document additional income, for example, using a tax return. Men of military age must present a military ID to the bank. When receiving a salary through the bank where you apply for a mortgage, it is not necessary to confirm your income and employment.

Once your application is approved, you will need to collect real estate documents. If it is purchased at the construction stage, then you need to submit to the bank an agreement on shared participation in construction and a package of constituent documents for the developer (Charter, decision/protocol on establishment, etc.).

If you are purchasing housing on the secondary market, the following documents are required:

assessment report;
the seller’s certificate of ownership of the property (if available);
extract from the Unified State Register of Real Estate;
extract from the house register;
technical and cadastral passport;
a document providing the basis for the emergence of property rights of the seller, for example, a certificate of inheritance.

Obtaining a bank decision

Of course, you need to start with the selection of real estate, since mortgage programs and their conditions can vary significantly depending on the type of property. For example, the down payment and interest rate for purchasing an apartment are lower than for a mortgage on a private house.

A list of documents collected in accordance with the requirements of the credit institution is submitted to the bank office. This package will definitely contain:

application form;
papers confirming solvency;
copies of identification documents of the potential client.

Employment documents are also required, and this fact plays an important role. The longer the borrower works in the last place, the more reliable the organization, the easier it is to get a positive decision from the bank. Therefore, it is better to provide all possible papers that will be required to consider the application.

As a rule, the above documents are sufficient to make a decision on the issuance of funds, determine the maximum limit and interest rate. However, the bank also requests:

identification documents of the seller;
other necessary documents (in addition, to ensure reliability, you will need
provision of certificates, letters, etc.).

It is better to find out at what stage of consideration of the application they should be submitted from a specialist in the mortgage department of a particular bank.

Conducting a transaction

If a potential buyer inspected the property being purchased, that is, traveled to the region where it is located, then it is necessary to obtain the relevant documents from the seller (plans, certificates, certificates, etc.). The client provides these papers to the bank simultaneously with a package of documents to determine solvency and reliability or after the decision to issue. They will also be required when taking out insurance, since insurance companies also have requirements for mortgaged real estate.

Important! After receiving approval, you need to come to the seller’s region yourself or ensure his personal visit or the arrival of his authorized representative to sign the contract in your city. This stage will be affected by the bank’s conditions regarding the registration procedure.

Please check with the bank representative in advance about the format in which documents will be signed and submitted for registration. For example, in 2020, Sberbank, on the territory of its mortgage divisions, provides the opportunity to electronically register a transaction. This speeds up the process. Other major players in the mortgage market are following the same path: VTB, Gazprombank, Russian Capital Bank, etc.

After signing documents, transferring funds and insuring the object (in cases where it is mandatory according to the terms of the lending program of a particular bank), the transaction can be considered completed.

Difficulties in purchasing an apartment in another city

There are only three main difficulties:

Home inspection, which can be entrusted to someone, but personal presence is still advisable so as not to miss important details
Personal presence at the time of submitting documents to the Registration Chamber; not all banks agree on this stage by proxy
Mandatory personal presence at the transaction when signing the contract.

So, if you can easily visit the city in which you are purchasing real estate at least 1-2 times, then there will be no particular problems with completing the transaction. There is no point in coming immediately to all stages from inspection to delivery of the certificate of ownership, since the transaction can drag on for a period of one to several months (if errors are discovered in the documents or additional documents are required).

It is worth comparing the expenses for travel to another city with the expenses for the intermediation of a real estate agency, which can help reduce the visit to the city where the property is purchased to the required minimum.