How to apply for a mortgage?

Many people in our country think,how to apply for a mortgage. However, before this it is necessary to understand the essence of this term. It turns out that the mortgage is a type of long-term lending, which implies the presence of a large collateral, mainly in the form of the acquired property of the client. In our country this type of lending began its development only in 1998 and is currently one of the most popular.

And this is not surprising, because in the currenteconomic conditions it is difficult to acquire housing, especially for young couples. Therefore, families are beginning to wonder how to apply for a mortgage. In the matter of choosing a loan scheme, an important aspect is the selection of such conditions that would be beneficial for both the creditor and the borrower. Under standard rules, a loan can be issued for a period of 5 to 25 years, with the client in most cases must have some savings, since the initial payment is required to pay. Its minimum size is 10% of the amount needed to purchase housing. As a rule, banks set floating interest rates, depending on the borrowed amount and the period for which it is taken.

Remaining after the payment of the initial installmentthe amount is distributed for the entire period in the form of periodic payments. Usually, payments must be received by the bank on a monthly basis. When considering the issue of how to make a mortgage, the client should know that he has the right to choose at his own discretion the system of charging periodic payments. There are two main methods: annuity and differentiated. According to the first, the amount of debt is evenly distributed over all periods. And with a differentiated method, with each month the amount of payments will be less than the previous one. It is advisable to choose the first method, since it will give the client some stability, in addition there will be exorbitant costs in the early years.

Do not be surprised that the bank as a feeThe service even accepted a loan application or account opening. This is a standard procedure that is necessary to cover the administrative costs of a credit institution. So, as a first step towards the purchase of housing in installments is the collection of information and documenting your desire. The documents for the mortgage must be collected in full and correctly compiled. You will need an application, the form for filling in which is provided by the bank employee, a copy of the main pages of the identity document, that is, the passport (and, of course, the original). In addition, all documents for real estate will be required, a copy of the work record card and a certificate of wages are required, because on the basis of these documents the creditor concludes that it is advisable to accept the application and the client's ability to timely repay the debt. Some organizations, explaining how to arrange a mortgage for an apartment, the standard list is complemented by a certificate of pension and medical insurance, marriage or divorce, and even driver's license.

If after examination of the application the bank issuesa positive conclusion, then the next stage is reached, on which a purchase agreement is drawn up. As a rule, after this, it is necessary to pay off the bank, that is, to pay the initial fee. But you can find a program that provides for the absence of such a program. Some credit institutions consider it necessary to insure real estate, as this reduces the risk of fraud.

After compliance with all formalitiesthe signing of a loan agreement and collateral is carried out, and within a few working days the seller of real estate will receive the required amount. Above are the basic rules that allow you to understand how to make a mortgage and become a happy owner of your own home.