There are both positive aspects – for example, the Rural Mortgage state support program, which allows you to purchase a house in the village at 3% per annum, and difficulties: it is necessary to confirm the status of a residential facility, land ownership. Mortgage banking programs allow the purchase of housing in the secondary market. It is an affordable and common way to purchase your own home. Mortgage means issuing a loan secured by the acquired apartment. For the bank to approve a mortgage for secondary housing, you need to responsibly approach the choice of an object and the preparation of documents. Buying an apartment on the secondary market is different from a deal on the primary one.
Features Of a Mortgage for The Purchase
When applying for a mortgage on a private house, difficulties often arise, especially if the object was built more than 20 years ago and is in a rural area. During the past years, there has been a lot of unauthorized construction. The order of land use has changed. Not all owners had documents drawn up correctly: if, at the time of the conclusion of the contract, the land on which the house is found does not belong to the category of land of settlements, it is impossible to issue a mortgage on such real estate with homes built on the grounds of categories: Specially protected area, Special purpose, Defense or military purpose, purchase and sale operations are prohibited by law if the ownership of land or a house is not registered, it is registered for different people, or some of the documents are lost, you can obtain a mortgage after the documents are brought into line.
What Is Secondary Housing?
The secondary market includes all apartments that have an owner. It does not matter if he lives in this apartment or not. As soon as the house is put into operation and the owner has registered the right of ownership, the housing is automatically transferred to the second fund. No need to wait for the fulfillment of construction; you can move immediately after the execution of the contract of sale. You can also register right away: you can enroll in a polyclinic, register your children in a kindergarten or school at the place of registration, can receive social benefits without waiting. housing on the secondary market is in areas with developed infrastructure
Stages Of Obtaining a Mortgage for Secondary Housing
Bank Selection
Explore available mortgage programs: for military, large and young families, with the participation of maternity capital, with state support. Use the mortgage calculator and calculate its total cost.
Submission Of a Preliminary Application
When evaluating a potential borrower, banks consider credit history, solvency, age, and existing credit burdens. To get pre-approved for a mortgage, fill out an application on the bank’s website. The bank will consider the application within three days and make a preliminary decision.
Search For Housing and Collection of Documents
When an apartment is found, it is necessary to submit information about it to the bank and confirm the mortgage. You will need personal documents of the borrower, the seller, and documents for the apartment, including a contract of sale. At this stage, a property appraisal is carried out. For this, an independent expert is involved. The bank’s final decision will depend on the correctness of filling out the documents, the completeness of the package, and the reliability of the assessment of the property.
Risks When Buying a Second Home
State support programs for purchasing an apartment in a new building from 2021 to 2022 include the requirement to buy real estate from sure developers. The chances of making a deal with an evil company are minimized. But when purchasing an apartment in the secondary market, most of the responsibility lies with the borrower. He must carefully check the seller and the legal purity of the object. You can order a cleanliness check of the thing at the bank or insure the title – this will help avoid trouble if the seller is dishonest. If the selling agent becomes a scammer, the borrower will be left homeless, while you will need to continue to make payments on the loan.
Conclusion
When buying real estate in a mortgage on the secondary market, the technical characteristics of the object and the legal purity of the documents play an essential role. The higher the liquidity of real estate, the greater the chance of obtaining a mortgage loan. When dealing with houses, they also check the absence of encumbrances on housing and land. Like the land plot, the house should not be pledged or under court. Another factor is the recognition of the object as a safe residential building. The assessment considers the age of the house, wear and tear, the date of the last overhaul, and the condition of engineering networks and heating systems.
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