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Every third Russian needs a loan. Borrowed funds are used to buy real estate or a car, pay for tuition and household needs.
Over 45% of Russians take out small consumer loans. About 20% are in need of large loans. These loans are issued by banks secured by real estate.
Features of a secured loan
A bank loan secured by real estate is relevant:If you need a large amount, the loan amount is 60-80% of the value of the collateral;
If there is no way to document income;
If the applicant had delinquencies on previous loans and other financial irregularities.
Collateral is a guarantee of loan repayment. If the borrower defaults, the bank has the right to sell the collateral real estate and reimburse the losses.
What can you use a secured loan for?
For the purchase of real estate;
To buy a car;
To start a business;
For any purpose.
TOP-5 banks lending secured by real estate
Sberbank;"VTB 24";
"Tinkoff";
"Raiffeisenbank";
Orient Express Bank.
Sberbank
The bank can take a non-targeted loan secured by an apartment. Its size is from 500,000 to 10,000,000 rubles. The interest rate is determined individually. It depends on the amount of the loan, term and status of the client. The minimum overpayment is 14%.To apply for a secured loan, you will need:
Application/questionnaire;
Passport of a citizen of the Russian Federation with permanent registration;
Documents that confirm the availability of a source of income and employment.
Real estate is accepted on security, such as a cottage, a plot of land or a garage.
Individuals who meet the following requirements can take out a loan secured by real estate in a bank:
Russian citizenship;
Age from 21 to 75 years.
If the borrower does not confirm solvency, the age threshold will be reduced to 65 years.
You can apply at a Sberbank branch or online. It is processed within 2-8 business days. After the application is approved, the client will be required to provide documents for collateral. If the mortgaged property meets the requirements, the bank will offer to sign the contract.
"VTB 24"
A loan secured by real estate in VTB 24 Bank is issued at a fixed rate of 12.25%. Maximum size the loan is 50% of the value of the collateral, but not more than 15,000,000 rubles. A loan secured by real estate is issued for 20 years. There are no commissions for maintenance, registration and early repayment.The pledge can be an apartment in an apartment building, which is located within the city, where there is a mortgage division "VTB 24". The property must be the property of the borrower.
From the documents you need:
Application/questionnaire;
Passport of a citizen of Russia;
SNILS;
Certificate of income 2-NDFL;
A copy of the work book signed by the employer;
Documents on the ownership of real estate;
Other legal documents.
"Tinkoff"
Which bank gives a loan secured by real estate online? The answer is simple: Tinkoff. The main virtual bank of Russia issues secured loans on the following terms:Amount -15,000,000 rubles;
Term -15 years;
The amount of overpayment is 15% per year.
A secured loan is issued in full or in several tranches. Any real estate is taken as collateral: residential and commercial. To apply, you must fill out an application on the site and wait for a decision. The contract together with the money will be delivered by courier. The loan is non-targeted.
Raiffeisenbank
In Raiffeisen Bank, you can take a loan secured by real estate for any needs. The loan amount ranges from 500,000 (800,000 rubles for Moscow residents) to 9,000,000 rubles. It is issued for 1-5 years. The rate is set personally and starts at 17.25% per year.The loan is repaid in equal monthly installments. In case of delay, a daily fine of 0.06% of the payment amount is imposed.
The pledge may be an apartment, which is the property of the applicant. An application for registration can be submitted on the bank's website, our portal or at a branch.
Orient Express Bank
In Vostochny Express Bank, a loan secured by real estate is issued for 20 years. Its size is from 300,000 to 15,000,000 rubles. The loan is issued at a rate of 16 to 26% per year.Mortgage property can be:
Flat;
Cottage;
Commercial real estate.
Life insurance of the borrower is an optional condition, and property insurance is the opposite. You need to issue an insurance policy for real estate within 10 working days after signing the loan agreement. Insurance is issued by the client independently in a company that meets the requirements of the bank.
The above banks that provide loans secured by real estate are among the TOP-100 banks in Russia. They conduct honest and transparent activities. According to statistics, over 70% of applications receive a positive response.
Basic requirements for the applicant and real estate
To get a secured loan, you need to meet the parameters set by the bank.Among them:
Citizenship of the Russian Federation;
Age from 21 to 65 years (sometimes from 23 to 60 years);
Permanent source of income;
Experience at the last place of work from 3 months, total experience - at least 6-12 months;
Lack of financial obligations;
Good credit history.
Real estate, which acts as a pledge, must be liquid, registered with the title authorities and suitable for habitation. If minor children or incapacitated persons are registered in the apartment, it cannot be used as security.
The relevance of obtaining a loan secured by real estate
Lending secured by real estate is both a profitable and risky transaction. If the borrower refuses to fulfill financial obligations, then the property will be confiscated by the bank.Therefore, you need to apply for a loan secured by real estate with absolute confidence in your financial viability.
How to get a loan secured by real estate? Are loans issued without proof of income? What is non-target and consumer credit+ 3 ways to get a loan with a bad credit history + 3 main risks of a loan secured by real estate.
Credit – fast way obtain a substantial amount for personal needs. Many use the funds received to develop a business or purchase real estate.
Every day the credit system grows and offers new types of services at more favorable rates for the common people.
Today we will analyze What is a real estate loan and how should it be properly processed?.
A loan secured by real estate - how is it?
Making a profit from the lending process has become profitable business since the 2000s. Previously, the need for money was satisfied by banking institutions by 95-98%, and now private companies have won back about 40% of the financial market for the provision of credit services.
Low interest rates and repayment terms are the main advantages of private lending.
secured loan– allocation of money to the borrower on the basis of temporary transfer of ownership of real property to the service provider.
Real estate has the highest liquidity rates, because either a private house much easier. The main goal of the creditor is to sell the goods as quickly as possible in case of non-payment of funds to the borrowers, and real estate and valuables are best suited for this role.
1) A loan secured by existing real estate.
Are you the owner of a private house or do you have a living space in the city? Or maybe you own the rights to only part of the home? Even this option may be considered by the lender in the event of the issuance of funds.
Absolutely any housing can act as a pledge, but remember, the size of the loan depends on its appraised value. The most popular loan secured by existing real estate is a mortgage.
Mortgage- a type of secured loan, where the borrower's private property acts as a guarantee.
People who intend to take out a mortgage loan expect an amount of 600,000 rubles or more. Banks annually simplify the process of registration and, therefore, the growth of mortgages is growing annually and relentlessly.
Differences from a loan without collateral:
- Opportunity to get a large amount within a short period of time. In most cases, the procedure will not take more than 7 working days.
- A property valuation item is included, which will provide an opportunity to obtain information on the estimated amount of borrowed funds secured by the property provided.
- Increasing requirements for property and life insurance of the borrower.
- The interest is 1.5 - 2 times lower than with a loan without collateral.
An important condition is the existence of the borrower's direct rights to the property, which he is going to put forward as a guarantor of the return of funds.
If the valuation of the property is very low, the extradition decision is submitted for additional consideration, because of this there is a high risk of refusal.
What to do if the bank refused to provide a loan secured by the existing real estate, we will consider below.
2) Consumer credit secured by real estate.
The most common type of lending available to absolutely any citizen Russian Federation. Issued in 100% of banks and other organizations related to the provision of lending services.
There are 4 types of consumer loans:
- mortgage;
- unsecured;
- target;
- non-targeted.
Unsecured is an ordinary loan of funds for personal non-productive needs. If you make a loan on the basis of property, then we will approach pledge type. For large amounts, consumers issue targeted loan secured by real estate.
Features of targeted consumer credit:
- Money is issued for a specific purpose (buying a home, car, and so on).
- The structure of the contract and the package of documents differ from the standard registration procedure.
- Funds go directly to the supplier of the goods.
This is a convenient method of buying a home, which is an analogue of a mortgage loan.
3) Non-targeted loan secured by real estate.
The main advantage of such a loan is independence in choosing the direction of using the funds. By taking a non-targeted loan secured by real estate, you can dispose of the money as you wish and do not provide reporting on expenses.Features of non-targeted lending:
- A document confirming the solvency of the borrower.
- Lenders often prohibit premature repayment of debt.
- Duration of work experience at 1 workplace for more than 2 years.
- The presence of a trustee at the conclusion of the contract.
In practice, obtaining a non-targeted loan will take much less time than others. Each bank has its own form of forms and.
The more favorable the conditions, the more information will be required from you.
The interest rate is lower than with conventional consumer lending, and depends on the additional terms of the transaction, as well as the size of the loan.
The age of the borrower must be between 18 and 55 years old, sometimes lenders make concessions and, if there is insurance on the part of the guarantor, they can issue money to persons under the age of 65 years.
The “non-payment” rule may be canceled ahead of schedule if this issue is prematurely settled with representatives of creditors. Official registration occurs through the application of the client.
4) A loan secured by commercial real estate.
Came from the West about 7 years ago. It has one of the lowest interest on loan funds, but at the same time it requires a large number of confirmations and other documents from official government bodies.
Most popular among entrepreneurs.
secured loan commercial real estate today it is issued at the rate of 18 - 22% per annum and for a period of not more than 5 years. These figures are related to the consequences of the 2014 crisis.
Recently, lenders are returning to rates of 12-15% and to the possibility of obtaining a loan for 10 years.
What factors affect the size of the % rate:
- the amount of funds requested;
- for what period of time the loan will be issued;
- the financial situation of the borrower;
- type of credit history.
Legal entities or their representatives can receive a maximum of 71 - 73% of the appraised value of commercial real estate, which is provided as collateral.
If the structure is made of wood or according to the documentation there was a change in layout, then the estimated cost is reduced.
What else do lenders look for?
- how accurate is the documentation for commercial real estate;
- whether the organization has other credit debts;
- availability of a state register number.
If the commercial space has a layout related to a narrow specialization in use, this can significantly affect the amount of funds provided. The reason is clear: in case of insolvency of the borrower, the lender will have to short terms sell real estate, and in this situation it will be very difficult.
Features of commercial real estate appraisal include post-assessment inspection of the object.
The process involves a complete analysis of the premises in search of problem points that can affect the implementation in the future.
A big plus of commercial lending is the ability to carry out work on the site, paying not rent, but the cost of the building itself. Among small and medium-sized businesses, such loans have become a real salvation.
The disadvantages include strict requirements for obtaining a loan and real estate documentation.
Compulsory insurance may increase by 10 - 12% the initially estimated costs for the maintenance of such property, if we are talking about mortgage loan secured by commercial real estate.
Features of the procedure for lending secured by real estate
After choosing the source of your lending, you need to start the process itself. What is a real estate loan procedure?The main elements of the contract consist of 5 points:
Clause 1: Presentation of the object of pledge.
The borrower provides documentary evidence of ownership of the property. The object may be located not only in the region where you plan to issue credit funds.
Some banks provide an opportunity to issue funds for property located anywhere in the country.
Item 2: Valuation of collateral.
The process is handled by lenders' specialists or an independent qualified employee. The client has the right to hire an independent expert to obtain a more objective assessment.
Most of the organizations involved in issuing loans prefer to underestimate the value of real estate.
The help of a broker will allow you to receive 15-20% more funds than with the standard procedure.
Item 3: Choice of loan period and interest rate.
Each financial institution, at its discretion, sets the terms of lending and interest rates.
Mortgage lending is the most profitable in terms of per annum, but payment terms stretching for 15-20 years can become a problem.
Item 4: Collection of information about the property and the borrower.
Before the direct conclusion of a contract, the system conducts an additional study of your financial capabilities as an individual.
A certificate from the place of work, documentary evidence of the amount of wages and other data that can affect the decision on the issuance of financial resources.
Item 5: Checking the permissions that the lender grants for the mortgaged property.
Usually this point does not attract attention in the standard procedure, but it is here that pitfalls can hide.
Will it be possible to dispose of real estate after it is declared as collateral - the most important question, which is worth deciding before the end of the lending procedure.
You can change the property only during the application process.
The document is certified by the notary of the company or your personal representative of the notary office.
1. A loan secured by real estate without a certificate of income.
A relatively new type of lending that has gained popularity in the last 5 years.The advantages of this method have made it a leader, and today a loan secured by real estate without a certificate of income can be obtained in every second bank in the country.
The procedure is practically the same as the standard one. The main nuance is the possibility of submitting a package of documents without proof of personal income.
Attempts to obtain such a loan by commercial organizations are close to zero.
A bank that makes such concessions often includes other credit requirements that can confirm the solvency of the borrower.
The categories most often resorting to obtaining loans without proof of income are low-income and young families. The intention may be to purchase or equip a home, as well as pay other debts of the borrower.
Depending on the purpose, it is necessary to focus on targeted or non-targeted consumer credit.
2. A loan secured by real estate with a bad credit history.
There are unforeseen difficulties that can affect your credit history. This can become a big problem in subsequent calls to banks.
Absolutely all fines are included in the debt repayment statistics, even if you are. The result will be a damaged credit history.
By requesting funds from a bank, you are providing the information the system requires without even mentioning past problems. But the bank will still receive the data through its own network.
Previously, a loan taken was registered with special authorities, and in the presence of fines, everything was automatically recorded. Particularly unscrupulous borrowers are included in the "black list", access to which have 95% of the country's banks.
There are 3 ways to get a loan secured by real estate with a bad credit history:
Direct contact with the bank.
No matter how bad your story is, each situation should be considered on an individual basis.
Some banks are loyal to solving such issues, and you will have a 20-30% chance of getting a loan.
Contacting a broker for services.
Intermediaries can resolve issues with a bad credit history within 2 to 5 days if the reasons for the delay in payments were justified by the situation.
Often such companies work with 2 - 3 banking systems, therefore, if requests for a loan do not go through, you can turn to another broker.
Loans from credit firms.
There are more and more private companies that provide an opportunity to get a loan every day.
Real estate as collateral pays off very quickly in case of non-payment.
The disbursement of funds is granted for a period not exceeding 5 years.
To find out the current status of your credit history, send a request to the Central Department. Use the dossier code as a key in the future on the website of the Central Bank of Russia to obtain the information you are interested in.
You can find out your credit history for free only once a year, subsequent requests will cost you 400 - 600 rubles.
3. Can I get a cash loan secured by real estate?
About 70% of the country's citizens want to get money in their hands when applying for a loan, so this issue is very relevant.
Depending on the credit plan, each bank has its own conditions for issuing, some make a cashless transfer to the account, while others can issue cash in hand.
Features of a cash loan:
- Requiring additional documentation.If you take a non-purpose loan, you may be required to report on cash transactions, since the ability to track the movement of funds in this way is very low.
- APR.Money is usually issued in cash, not exceeding 500,000 rubles. The smaller the loan, the higher it interest rate.
- Additional points in insurance.Standard property insurance when lending at a bank can be supplemented with personal insurance. This will be financially noticeable, especially with a long term debt payment.
The easiest way to get money in cash is through the offers of commercial organizations. They are not very interested in your dark past, if, of course, there is one, and they are ready to give out up to 2,000,000 rubles in cash.
Each case should be considered on an individual basis: the more attractive the property, the more bonuses you can get for yourself.
An example of such a resource is mos-zalog.ru
This is a private company that has been lending to Russian citizens for 4 years. The main office is located in Moscow, but it is possible to execute a deal remotely.
Within 5 days you can get money into your account. If you take cash, you will have to visit the office of the partners of the organization to resolve additional issues.
Negative credit history is not taken into account, and the list of documents is minimal. To issue funds at the department of the organization, you will need a passport and another document proving your identity.
Ultimately, the most important factor loan amount, 50,000,000 rubles is not so easy to issue in cash even for large institutions of the country.
Loan secured by real estate: reviews of bank loans
The list of banks in Russia includes more than 60 public and private institutions, so you should carefully consider the conditions and quality of processing credit funds.
We took into account the reviews of ordinary users of the country on the main banking website banki.ru, and selected for you lists of the best offers with moderate interest rates for all occasions.
| Top financial institutions for consumer credit | |
|---|---|
| Housing Finance Bank | The rate is not higher than 13% for a period of up to 18 years and with a loan amount of up to 5,000,000 rubles. There is an additional one-time commission of 5% for personal insurance. |
| Confidence Bank | Loan amount up to 12,000,000 rubles for up to 130 months at 12% per annum. If personal insurance is cancelled, the interest rate increases by 12 points. |
| Gazprombank | There are 2 options. In the first, the rate is 12% for 12 months, and the amount of funds is no more than 25,000,000. The second allows you to get a loan for 15 years at 13% per annum. |
Almost any banking institution in the country can provide you with a consumer loan secured by real estate on similar terms.
It all depends on your personal preferences and the possibility of contacting a particular banking department.
| Best Financial Institutions for Non-Targeted Loans | |
|---|---|
| Alfa Bank | If the loan amount is more than 700,000 rubles, the interest rate will be 12%, and up to 250,000 - 26%. The annual amount is determined for each case individually. There are no additional commissions, and the maximum term is 60 months. |
| Post Bank | Amount ranging from 400,000 to 1,200,000 at 13% per annum for up to 50 months. There are no additional fees or commissions. A nice bonus will be the lack of compulsory insurance. |
| VTB Bank | Interest depends on the terms of the loan - from 15% to 20% per year. The loan amount does not exceed 2,500,000 rubles for no more than 5 years. No insurance is required and there are no additional fees. |
Non-purpose loans are provided by about 50% of all financial institutions.
Due to a number of additional conditions, banks prefer to have information on the expenditure of allocated funds.
| Loan without proof of income | |
|---|---|
| Moscow credit bank | The loan amount reaches 2,500,000 rubles at an annual rate of 13% to 28%. It all depends on the terms and conditions of the contract. There are no additional fees. In case of refusal of insurance, 3 points are added to the annual. |
| Renaissance Credit | Issuance of funds secured by real estate for a period of 5 years from 13% - 27% per annum to 800,000 rubles. Insurance is not required. |
| SKB Bank | A rate of 28% for up to 3 years and an amount not exceeding 300,000 rubles. No additional fees or insurance required. |
Issuing a loan to a consumer without confirmation of a permanent income is a dangerous business, even on the security of property.
The evaluation commission is very strict and the amount of allocated funds rarely exceeds 50% of market value real estate.
Only 25% of the country's banks practice.
Banks are very reluctant to make loans to people with a problematic repayment history.
Only 4% of the country's banking institutions are ready to provide such services, but there will be so many additional conditions that it will be easier to find an alternative source of financing.
The way out of the situation is to contact credit brokers or private companies that will help you get a cash loan secured by real estate.
How to get a bank loan secured by real estate?
The answer is given by experts in finance and lending:
Risks of a loan secured by real estate
Even borrowing money from a bank, you may be exposed to certain risks.
Of course, if you have a bad credit history or need a loan without an income statement, the list of available resources is drastically reduced, but it is rash steps that can cause your financial problems in the future.
What risks await:
Scam tricks.
By transferring money only on paper, you are pushed into a contract that states that you are willingly giving the property into the wrong hands.
Loss of real estate.
Think rationally. You should not take an unbearable loan, the interest on which will not only not help you solve current problems, but will also add new ones.
Additional expenses.
The interest rate in foreign currency may fluctuate depending on the economic situation in the country.
Even in rubles, you will not be able to insure yourself against the payment of the Thirteenth Payment.
A personal notary or a broker will allow you to protect yourself as much as possible. Property valuation is also best done with the help of an independent expert, so you can get the most out of the situation and turn it to your advantage.
A loan secured by real estate has now become a lifesaver for a large number of people in the country.
However, do not forget that you will spend 5 or more years paying it off, and the final amount will be with a considerable overpayment ...
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- at the place of registration of the borrower/one of the co-borrowers;
- at the place of accreditation of the company-employer of the borrower/co-borrower.
Loan application processing time
Up to 6 business days.
The procedure for granting a loan
At the same time.
Loan repayment procedure
Monthly annuity (equal) payments.
Partial or full early repayment of the loan
It is carried out according to an application containing the date of early repayment, the amount and the account from which the funds will be transferred. The date of early repayment indicated in the application must fall exclusively on a working day.
The minimum amount of early repayment of the loan is unlimited.
There is no fee for early redemption.
Penalty for late loan repayment
Penalty* for late repayment of the loan corresponds to the key rate of the Bank of Russia, effective on the date of conclusion of the Agreement, from the amount of overdue payment for the period of delay from the date following the date of the fulfillment of the obligation established by the Agreement, to the date of repayment of the Overdue Debt under the Agreement (inclusive).
Let's analyze the conditions and benefits of this type of lending to citizens.
Today, everyone can find themselves in an awkward position when a large amount of money is urgently needed. What to do in this situation? As a rule, a consumer loan is issued at a considerable interest. Consequently, there is a need to take a loan secured by real estate: the overpayment is much less, the property actually remains available, and cash issued within a few days. Is this really so, we suggest that you further understand.
Features of lending secured by real estate
Today, banking institutions provide loans secured by real estate to almost everyone who applies to them. The reason for this is the guarantee of repayment of debt and accrued interest. In the event that the borrower stops repaying the loan, then after the completion of litigation, the mortgaged property becomes the direct property of the lender. Further, he has the right to use this property solely at his own discretion: rent it out, sell it, etc.
In accordance with legislative framework RF, to obtain a loan in a banking institution, you can pledge the following objects:
- land plot;
- residential property (house or part thereof, apartment, room);
- objects that are used for commercial purposes;
- garden houses, garages, summer cottages etc.
Property that is jointly owned can be mortgaged only with the consent of all owners. However, for example, a part of the property belonging to the borrower can be issued as collateral without the consent of other persons.
List of real estate objects that are not subject to registration as collateral:
- real estate in disrepair, as well as one that is subject to demolition in the future;
- residential premises in which children under the age of majority, persons in places of deprivation of liberty and in the army, elderly dependents are registered;
- real estate, in the process of privatization of which the rights of children were not taken into account;
- objects that have an encumbrance of a corresponding nature.
Conditions and requirements of banks for obtaining a loan secured by real estate
The main requirements for obtaining a bank loan secured by real estate are:
- The solvency of a potential borrower.
- Satisfactory physical condition of the property, the absence of any encumbrance on it.
- Compulsory drawing up of a loan agreement.
- Provision by the client of the following package of documentation:
- an application completed in the prescribed manner;
- passport of a citizen of the Russian Federation;
- a copy of the work book certified by the official employer, a certificate of income in the form of 2-NDFL;
- marriage/divorce certificate;
- a notarized document confirming the direct consent of the spouse to the loan;
- documentation for the property object of pledge (cadastral number, technical passport, extract from the Unified State Register, certificate of the State Registration Office).
A banking institution must take into account the liquidity of collateralized property through a special peer review. The bank may not accept a pledge, provided that the potential client provides the only housing in which his entire family and children who have not reached the age of majority live.
As you know, small loans, up to 100,000 rubles, are often issued by banking institutions without property security. However, whoever has a negative credit history cannot hope to get an unsecured loan. Therefore, if the client has a bad credit reputation, then providing real estate collateral is the only way to not only get a bank loan, but also significantly increase your credit rating.
It should be noted that not all potential borrowers have the opportunity to apply for a secured loan with a negative credit reputation. In this case, a positive decision directly depends on the rating score, that is, bank specialists consider the degree of violation of the loan agreement.
Borrowers who have systematically defaulted should not wait for approval from the bank. If the delay in loan repayment was of a one-time nature, the probability of issuing a new loan or refinancing an existing one is quite high. Banking institutions are interested in the timely return of loan funds, therefore, collateral refinancing options are given priority.
The quality of the collateral is important. So, initially the assessment of the liquidity of the collateral object is carried out. Of course, the higher it is, the more likely the borrower is to get a loan for favorable conditions.
In addition, the client must be prepared for additional costs, since the bank has the right to require compulsory insurance of collateral. The purchase of an insurance policy is carried out annually, and its cost is calculated as a percentage of the total balance of credit debt.
Loan secured by real estate without a certificate of earnings
To date, there is a practice of issuing loans secured by real estate without providing a certificate of income. But, unfortunately, not all banking institutions are willing to take such a risk. First of all, this is due to the fact that banks do not want to bear considerable losses from the potential insolvency of the borrower. Usually, the issuance of such a loan is carried out for an amount not exceeding 50% of the total value of the collateral object.
After the client provides a complete package of documentation, the bank will be ready to make an appropriate decision. Further, a loan agreement and a pledge agreement are concluded. The borrower is advised to carefully study all the nuances of lending immediately before signing a formal agreement.
Particular attention should be paid to the following points of the loan agreement:
- loan interest;
- the amount of the monthly mandatory payment;
- the presence of an additional commission for processing a loan;
- additional payment for servicing the loan;
- grace period (its presence or absence);
- the amount of penalties for late payment of current payments;
- the nature of the sanctions that the bank can apply to the debtor in the event of its complete insolvency.
Additionally, the bank may require you to take out health and life insurance for the client. Of course, this will require certain financial costs.
Today, in the modern financial market, there is a huge number of credit and microfinance institutions that are ready to provide loans secured by real estate on convenient terms of service. Nevertheless, the borrower is obliged to competently approach the solution of this issue, having soberly analyzed his financial situation and comparing it with the possibility of repaying credit debt in the future.
If a person urgently needs money, and there is nowhere to get it from, then banks offer a service such as a loan secured by real estate, which provides the borrower with an opportunity to receive a large amount for a variety of purposes, from buying an apartment to the opportunity to make home repairs or relax. Such products are popular in the banking environment, since the bank will protect itself from risks by issuing money - if the loan secured by real estate ceases to be paid, then the property is simply torn away from the applicant.
What is a real estate loan
In connection with the expansion of the market for the construction of personal housing, banks have become more willing to lend money secured by real estate, offering it to their clients when they do not have the funds to buy a new home, or there is an uncovered difference between the price of old housing and new. Even if the goals of clients do not relate to mortgages, banks still go for loans if, as security, a person provides housing or any other product that is a priori in demand on the market.
Mortgages secured by existing housing
For the law, a targeted loan secured by real estate is equivalent to a mortgage, because it doesn’t matter whether you buy a new home, taking money for this purpose, or take funds for other purposes, mortgaging real estate - such a loan is considered targeted. There are options when a person, wanting to improve his living conditions, wants to borrow money from a credit institution by mortgaging real estate that he already owns. The contract specifically prescribes conditions that suggest that a person will spend the funds received exclusively on the purchase of housing.
Non-targeted loan secured by an apartment
Many large banks, such as Sberbank, offer a non-purpose loan secured by an apartment, which provides that the money provided to the applicant can be spent in any way, and he will not need to report on this. Such Sberbank products should be popular among customers, but the need to collect a lot of documents, one listing of which takes two sheets, and the likelihood of not receiving money, scares off potential applicants.
Loan secured by land
If a person does not have an apartment, which, according to the documents, is his property, then many banks, for example, Rosselkhozbank, offer to take a loan secured land plot if it belongs to a potential borrower. It is desirable that the site is located in a good area, there are some buildings on it, so that the bank has the opportunity, in case of delay in payments on borrowed funds, to easily and profitably sell it.
Lending companies can accept any property as security for a loan, issuing consumer loans against it - it can be cars, trucks, special-purpose vehicles, truck cranes, excavators, even antiques, although in this case banks are reluctant to consider such collateral, since antiques require independent evaluation, and then selling them is not so simple.
Credit benefits
Unlike other bank loan products, the advantages of a loan secured by real estate are obvious:
- consideration of the application takes a minimum of time;
- competition for customers encourages banks to lower interest rates;
- the loan term can be very long, up to 25 years;
- some organizations provide potential borrowers with the opportunity not to indicate the amount of their income;
- if a person is a client of a bank, then an agreement can be signed for him on more favorable terms of provision, which may relate to both the amount of interest and the period for obtaining a loan and its repayment;
- to calculate the interest rate on a loan, you can use the mortgage calculator, which is available on the website of any commercial lending company.
Minimum Interest
Each bank has its own interest rate for a loan secured by a house or apartment. There is one general unspoken condition - the fewer documents a client provides to a credit institution, the higher the interest on borrowed funds will be. So, in Sberbank it reaches 14% per annum in rubles, the capital branch of Alfa-Bank offers loan applicants in Moscow 12.5 - 12.9%, at Rosselkhozbank the rate depends on how long the client takes the money - the longer the repayment period the higher the payment amount.
Loan secured by an apartment without proof of income
Everyone wants to get borrowed funds as soon as possible without collecting a pile of certificates. You can take a loan secured without certificates from Sberbank only by receiving wages regularly to the card of this bank, or exclusively for educational purposes, for which Sberbank has a special product "Educational". Sovcombank, Vostochny Express Bank and Rosselkhozbank can provide loans without salary certificates, offering the most suitable conditions for borrowers.
Real estate loan terms
Each bank has its own conditions for obtaining a loan secured by real estate, however, the most important requirement is the provision of reliable information on the available housing, which is supposed to be mortgaged. Its value is assessed by experts. Based on this, a decision is made to issue the required amount of money, which is a certain proportion - from 60 to 85% - market price apartments or houses. Banks may impose other conditions regarding, for example, consent to the loan of people living with the loan applicant.
How to get a loan secured by an apartment
To simplify the issuance of funds and quickly take out a loan secured by real estate, you must first evaluate and insure your home so that bank employees do not have to carry out this procedure themselves. At the same time, it is necessary to use the services of reputable firms, whose documents will have weight for bank employees. When filling out a form for issuing a particular type of loan, you need to be aware that you will not be given an amount that will be more than stated in the assessment sheet.
All expenses are borne by the potential borrower and are not compensated in any way. The client submits an application for the type of credit encumbrance required by him in a single form, then waits for bank employees to check the documents provided by him for truth and correspondence to reality. All this takes some time - in some cases, consideration of the application takes several hours, sometimes - several days.
Documents for a loan
Turning to this or that organization, the client should know what documents he will need to apply for a loan secured by an apartment. In each individual case, the situation depends on the banking structure and what product the potential borrower wants to use. When mortgaging housing or any other liquid real estate, the following papers are required:
- documents confirming the applicant's right to housing;
- passport, personal account number of the applicant in the Pension Fund;
- a form confirming officially the applicant's income with tax deductions from them;
- the basis on which the applicant owns real estate (contract of donation, purchase, inheritance);
- certificate from the MFC that the applicant is registered in the house book;
- notarized consent of relatives registered in housing for the issuance of funds.
Bank requirements for the borrower
On the territory of Russia, there are almost the same bank requirements for a potential borrower who wants to receive money by mortgaging a house or apartment:
- age from 21 to 65-70 years (at Sovcombank, the age of the recipient of funds can reach 85 years);
- the applicant must be a Russian citizen;
- officially work for at least six months with the same employer;
- do not involve joint borrowers if they are individual entrepreneurs, owners of private farms or chief accountants of SE, and not individuals.
Obtaining and servicing a loan
After the banking structure has approved an application for a loan secured by real estate, the borrower is given the required amount in cash or by transfer to the account indicated by him. The applicant must carefully study all the clauses of the agreement regarding the repayment of the loan body and interest, because if he overdue at least three times or does not fully repay the current debt, the collateral property can be transferred to the lender without any legal proceedings.
Loan repayment procedure
For simplicity and convenience of tracking payments, banking structures provide for the repayment of a loan secured by an apartment in equal installments, calculating the monthly required amount for repayment and attaching this calculation to the main contract. The contract specifies the deadline for depositing the required amount, after which penalties for delay will be calculated. Sometimes it is possible to repay the entire debt in one payment at once, however, this method of quickly repaying the loan may be subject to a commission.
Which banks give loans secured by real estate
All credit and banking organizations are interested in their funds being in circulation and making a profit with the least risk. The most popular banks that provide secured loans are Sberbank, VTB 24, Alfa-Bank, Raffeisenbank, Rosselkhozbank (preferring to lend to farmers and owners of household plots), Sovcombank, Gazprombank, IIB, Vostochny Express Bank. Each of them has its own products that offer different options for lending with real estate collateral.
Pros and cons of a loan
Like any loan encumbrance, there are pros and cons of a loan secured by real estate. The pluses include the fact that credit companies quickly and positively respond to the applicant's application, if it is correctly executed and all required documents. The downside is that you have to collect and draw up a lot of paperwork, and then sometimes wait a whole week to see if the application is approved or not.
Video: Eastern Express Bank - a loan secured by real estate
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