News and press company "Avangard77"Back to the list of news
Mortgage NON GRATA
In today's world a mortgage is often the only way to purchase their own housing in a relatively short time. In the system of mortgage lending constantly reduces the requirements for the borrower, however, the limitations still remain. Also banks set certain criteria by which to assess the possibility of financing a property.
For the choice of apartments the borrower is given some time. Usually this period is 3 months, after which the Bank must approve the property. An assessment of the expected object of crediting is required by banks to determine risk.
each financial institution's own evaluation criteria, but there are a few common. Not subject credit:
· Objects illiquid real estate. To arrange a mortgage on apartments located within the city or in the suburbs.
· Apartments in buildings under demolition. Usually older buildings less than 5 floors (the exception may be houses located in the historical centre of the city).
· Dilapidated buildings, requiring evacuation due to reconstruction or overhaul.
· Apartments that do not meet sanitary norms. Must be connected system of electricity, water, heating. The presence of gas columns also often becomes a cause of a failure in lending, as they do not approve of insurance companies. Housing with such a column or wooden beams may not meet the safety requirements.
· Apartments with illegitimate alterations that do not meet the plan.
· house under Construction. There are difficulties with determining the cost of purchased housing, which can be a cause of failure to the borrower.
· Rooms in hostels or "dormitory".
· Buying shares in the apartment.
in addition, difficulties may arise with apartments in buildings built before 1970 are the most important criteria – the degree of wear of the property at the end of the loan. A valid repartition – up to 70%, often it is reduced to 60%.
Banks market value of the property specified by the independent expert. It may not be the same as the price sought by the seller. If the buyer decides to buy an apartment at a higher price, the difference is, as a rule, paid from his own funds. In the vocabulary Bank and there is such a thing as the liquidation value of housing, i.e. the price for which an apartment quickly evacuated in case of emergency. This amount is usually 10-15% less than the market.
mortgage loan Program may provide for other requirements to the purchased object, to minimize the risks. For example, there may be difficulties with the acquisition of flats with relatives. For the borrower it is important to choose the program itself, and the right property. This assist real estate companies – they pick up the apartment for the given parameters taking into account the financial capabilities of the client, and the legal purity checks for the Bank.