The mortgage agreement, in contrast to other collateral agreements, must be certified by a notary public, as well as powered by attorney for such transaction.
Advantages of this type of credit are the following:
But home mortgages have also disadvantages, which you should know:
- An apartment or other property is acquired in a fairly short period of time and allows you to immediately register there;
- Insurance is issued by the acquired property;
- Transaction is paid by long-term installments;
- There are benefits to income tax;
- After the conclusion of the contract, acquired property immediately turns the property of the borrower.
- The borrower may be unable to pay, and then the bank charges high fees for late payment;
- Not everyone can get a loan, because banks conduct a rigorous selection of potential borrowers (depending on age, presence of registration, seniority, occupation, salary and other criteria);
- Overpayment for purchased housing is often several times higher than its cost.
Before you take a mortgage loan, you need to weigh the "pros" and "cons", well evaluate your possible ability to pay, and only then, proceed to the registration of transaction.
Home mortgage deal usually goes in three stages:
- The Bank is carefully studying the borrower and his credit history, so that makes the decision about whether it can give him a loan. Next, consider how much money is given, since it depends on the term of loan, the size of the borrower's income, down payment and the value of the property, which he wants to buy. Loan payment should not be more than 40-50% of the revenue share. If all goes well, the bank gives the borrower a certain period of time, necessary for the selection of the property.
- At this stage, the bank assesses the suitability of the property as collateral property or not. The borrower should present all necessary documents (certificates, an evaluation report and other papers). If the object is approved, the parties enter into a loan agreement. Then is made insurance and the date of transaction.
- The Federal State Statistics Service Management approves the documents and registers mortgage.
The development of such type of lending, as home mortgages, has a positive effect on the construction sector and related industries, as well as, can help to mobilize household savings of population and guide them in the right direction.