Everyone dreams of owning their own home, but not everyone has the necessary finances to buy it. As a result, some people have to take out a mortgage loan, but unfortunately, not everyone gets one. Today let’s discuss which categories of people can get a mortgage loan.
You’ve found the apartment or house of your dreams, and you want to buy it. That’s fine if you have your own money and won’t take out a loan. And if you do have to go to lending institutions to take out a mortgage to buy a house, then you need to know in advance if you can get one. Each financial institution has its criteria for home loans.
The criteria for applying for a mortgage are foreign citizens or stateless persons permanently residing in your country and possessing the appropriate identity document issued by the competent authorities, valid when applying for a mortgage loan. But some organizations grant loans only to citizens of the country, with no exceptions.
2. Age and social status
On average, the age to qualify for a home loan varies from 20 to 70 years or until retirement (the maximum term for repayment of the loan). Your marital status and the number of people you support are also considered.
3. Employment and ability to pay
One of the main conditions for getting a home loan is to be officially employed for at least 4 months (in some cases, even 6 months). Your income must be stable and sufficient to make monthly payments on the loan. These payments vary depending on the amount and term of the loan. Also, some companies ask for a down payment of 10 to 30% of the total property value from the buyer.
4. Credit History
As we mentioned in the previous article, your credit score influences whether you get a loan or not. If you have no previous credit debts, this is another point in favor of whether you can get a loan.
5. Real Estate Documents
To get a home mortgage loan, you must provide collateral. You can take the home you are applying for a loan on as collateral or other property you own. You must provide proof of ownership (the original ASP statement) and a property appraisal report (to be used as collateral).
What you can buy under the “Mortgage Loan” program:
- An apartment in an apartment building or a house with a plot of land;
- Apartment/nonresidential premises in an apartment building under construction;
- land plots;
- Non-residential premises, buildings, and structures that are not intended for living.
- It is also possible to use when buying your business premises credit funds for the construction of residential houses, buildings, and structures.
Long-term mortgage housing loans are granted on conditions of payment, urgency, and repayment, as well as under strict control over the use of credit funds. The main security of repayment of credit funds is a pledge of housing acquired at the expense of these funds.
In the loan agreement, the parties stipulate the following conditions: the amount of credit granted; the period for which the loan is granted; the amount of interest paid by the borrower for the use of credit; the sequence of repayment of the loan, and interest on it, the grounds for early termination of the contract and the collection of the loan and interest on it, etc.
The following conditions are included in the mortgage agreement by the parties: the subject of the mortgage; the price of the premises to be mortgaged; the substance of the main obligation secured by the mortgage (provision of credit funds); the amount of the main obligation secured by the mortgage (the amount of the credit provided and the amount of interest for the use of the money); the term for performance of the main obligation secured by the mortgage (the period for which the credit is provided); a statement that the property being mortgaged is in the borrower’s use.
The loan can be secured by:
An agreement on a mortgage of acquired residential premises with an appropriate notarial certification of the transaction, as well as state registration of the arising mortgage; trilateral (mixed) agreement on the purchase and mortgage of the residential premises, when all three parties concerned successively and practically at the same time fix, notarize, and register the transfer of the property right from the seller of the apartment to the buyer and the mortgage of the apartment in favor of the creditor.