What You Must Know When Acquiring The Mortgage Loan?

In the United States settlement of housing problem using a mortgage loan has become the norm. The share of mortgage loans is more than 90% of all deals associated with the purchase of accommodation.

What credits can be? Loans are divided into two types: consumer and target.

Consumer loan.

Consumer loan is issued for a short term and is limited in the amount, i.e., having even very high wages, you will not able to get credit more than a certain sum. But you are able to apply such a credit for anything while you do not put up security.

Target credit.

Purpose credit has a precise definition of aims, which can be applied for and the bank will monitor it. Mortgage credit – is a purpose credit, which is issued for the buying real estate and on collateral of this property.

What is a mortgage?

Mortgage – is a system of long-term credits given for buying housing. The main benefit of this method is that the buyer has the opportunity to make an initial fee, which is typically 10-30% of the purchase price and begin living in a new place. The remaining amount will be paid out during 10-20 years. A new flat will be bail for the bank.

Benefits of mortgage credit.

• No need to wait the needed amount of savings for acquisition of housing.

• With a constant increase in property prices it is more favorable to buy an apartment on tick than to save funds for it for a few years.

• Mortgage allows you buying accommodation of higher quality than you could afford, using only your savings.

Generally, the mortgage scheme is following:

• The creditor (e.g. bank) issues a loan on the purchase of real estate to the recipient of the loan;

• The borrower acquires real property at the expense of the loan;

• Acquired property is issued as bail for credit;

• Real estate acquired by the loan subscriber is left at the recipient of the loan in his possession and use with definite restrictions.

Documentation necessary for obtaining the credit:

– Filled application form;

– Civilian passport and the duplicate of passport of the wife / husband (all pages with information);

– Marriage certificate, birth certificate;

– ID of tax payer of the mutuary and wife / husband of the recipient of the loan;

– Certificate of employment, certified by the accounting department, which proves the position of the borrower (wife / husband) and payroll and withholding taxes for the last 6 months;

– Documents confirming the other income of the borrower.

The process of acquiring the credit for the purchased property:

– The recipient of the loan goes to the bank to obtain the prior aggreement of the bank to issue the needed loan amount.

– The borrower collects all necessary documents.

– The bank gives a preliminary conclusion about the issue of the necessary loan amount to the future buyer.

– It is chosen the apartment and the deposit is made.

– It is gathered all needed documents and information required for obtaining the loan.

– Bank’s Credit Committee makes the ultimate decision about issuance of the credit (2-7 days).

– The sales treaty is signed.

– An insurance policy is drawn.

– The state registration of the transaction.

It is the main stages of credit registration.

Some time ago when the world economy didn’t face recession many people purchased their houses with the help of mortgage. And today not all of them cannot repay their loans though there is a way out – mortgage note buyer. Go to this mortgage note buyer site to learn more info about it as those guys declare ‘we buy mortgage notes‘.

Also we have to keep in mind that we are living in the world of high technologies. Should we require something it would be smart to make use of every tool available to us to get it at the best price on the market. For instance, for those who are interested in selling mortgage notes, modern Internet network gives a really unique chance to select what is the best for them. Moreover, visit relevant forums, social networks, search for related blogs and subscribe to their RSS – all this will assist you to create a true vision of the market.

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