Mortgage literacy campaign

So, the mortgage - this is a stock lending, designed specifically for housing. Mortgage loans are available to purchase flats in the secondary market or in the building, cottage or cabin. In rare cases, banks give out mortgages to buy a room in a communal apartment. Who to whom and on what makes a loan? But the mortgage - a loan is issued and it is those who are on the conclusion of the bank in a position to pay off in the allotted time period. Accordingly, the decisive factor in this regard is the solvency of the client, not the hard living conditions and the urgent need to improve them. The exception is the so-called social mortgage, which recently is so much talk of power. Accordingly, if to put aside this most social mortgage, the loan amount for which the borrower is eligible, will depend on its level of income and opportunities for them to confirm. Mortgage loans, like any other loans to banks, but not real estate companies. Despite this, many medium and large real estate agencies have entire departments that deal with mortgages. The thing is that the loan transaction and a new home, and often sell the old one, is inextricably linked to each other. At the same time provide support for realtors sales transaction and receive compensation that is what, and the bank issues a loan and get money for servicing the loan. Hiring a consultant on the mortgage, real estate agencies thus attract more clients, creating a competitive advantage compared to the agencies where there are no such specialists. Whose housing estate, bought with a mortgage, is the property of the buyer, not the bank. However, in order to guarantee the repayment of the loan, this house goes into the bank guarantee until such time as the loan is fully repaid. If for some reason the borrower refuses to fulfill the conditions to repay the loan, and this case will not be insured, then there would be no way that a loan must repay the insurance company, the bank has every right to sell this house and to reclaim those money that the borrower owes. In this case the remainder of the sum of the borrower, and must be considered that he had himself paid the initial fee and most likely had to pay off some debt, acquisition of another home. But here we must understand that the annuity option loan, namely, it is most common today in mortgage lending, the first time (up to half of the loan term) in the structure of the lion's share of monthly payment is interest on the loan, and only a small part of it are deductions that are go to the repayment of the loan. In addition, in the event of default as banks seek to quickly implement housing and, therefore, sell it cheaper than market value. Due to the fact that the housing until the loan is pledged to the bank, follows another feature of the mortgage. Assessing the creditworthiness of the borrower and agreeing to give him a certain amount, the bank may refuse him a loan for purchase of housing, inappropriate representation of a particular bank on how to be a reliable guarantee. In connection with this circumstance, the borrower sometimes have very specific problems associated with the loss of money granted to the seller as a prepayment in the apartment. Unfinished apartment in new building can not be the key, because the unfinished apartment in an apartment building can not by definition be the property of a co-investor. Property right in interest holders arises only after the construction and execution of all necessary documents. But this does not mean that the banks do not give mortgages to purchase housing in the primary market. Just here we use several other schemes. Or pledge to the bank goes any other property which is the borrower and after construction will be completed at home and apartment in the new house will be a property of the buyer, the bank removes the bail on the old property and taking a pledge of a new one. Or the bank agrees to issue a mortgage only if the borrower enters into a contract with the developer, which this bank is accredited and has passed a test for reliability. However, it must be borne in mind that banks usually before registration of real estate require the payment of higher interest rates, and insurance companies that work with banks, may require additional financial risk to pay. Despite the fact that housing is pledged to the bank, the buyer has the right to live in it, record their relatives (with the permission of the bank) and even to take an apartment in hiring, in other words, the rent (of course, also with the permission of the bank). The only thing that can make the borrower with this apartment until fully repaid the loan is sold, exchanged, or donate it to someone else. "In addition to the money rate of interest on the loan, the borrower must face the so-called additional payments. These costs are unavoidable when obtaining a mortgage loan at any bank. Sometimes there are even waste at the initial stage, ie at the stage of the application - some banks charge a fee for review credit application. can serve as an initial contribution of funds received from the sale of apartments already available from the borrower. That is, in fact, it is possible to make an exchange with an additional charge, but the extra charge to take a mortgage loan at the bank. In addition, money for a down payment can be obtained taking on another loan for purpose, such as consumer credit. The amount that the Bank has agreed to give you a mortgage, is an upper bound, but not the amount that the bank will issue you need. It's like having a credit card - you have available amount for the issue, but that does not mean that you must spend it all. If the apartment you will find in the end, will be cheaper than the one on which the bank has agreed to grant the loan, it does not mean that the bank is willing to reduce the percentage of binding down payment or just abandon it. Just reduce the amount of bank credit. But the ratio between the initial payment and the amount of credit will remain within the borders that were previously negotiated with the bank. The percentage of the initial contribution is calculated from the estimated value of the apartment (according to Bank). If for some reason, the real value of the apartment, that is the one on which you agreed with the seller is greater then the difference you have to pay extra on their own. In addition, in the future, you may run into serious financial losses, if not be able to return money to the bank, and the apartment will be sold to pay off your debt. The cost of its implementation will have a serious impact the original appraised value. If suddenly what happens if suddenly an insured event occurs, you should not rely on the fact that all risks are insured. Indeed, when mortgage loan, banks require insurance risks, namely the loss of your disability insurance, the risk of damage to the apartment and the insurance of property rights. And despite the fact that all of the insurance cost is the borrower, when the insured event all payments, with few exceptions will be made in favor of the bank. Of course, the borrower can hedge their risks and, but for an additional charge and, in fact, this insurance will not have any relation to the most credit. If a bank blows up, the borrower may not be particularly happy or upset. On the one hand, the failed bank lenders "forget" to recover from his duty, on the other hand, if the lender changes the conditions of the loan agreement can not be reviewed. That is, no one has the right to require the borrower to return the whole amount at once and entirely. It's just that it will change the beneficiary to whom he will pay the balance amount and interest.