How to choose an apartment for purchase in a mortgage
How to choose an apartment for purchase in a mortgage
In fact, mortgage lending representsa long-term loan for the purchase of housing. It comes into the ownership of the borrower, but remains pledged to the lending bank until the borrower repays all of its financial obligations. The most common type of mortgage lending is the independent purchase of apartments by citizens.
The procedure for the acquisition of housing inthe mortgage lending program is regulated by Federal Law No. 102 "On Mortgage (Real Estate Pledge)" as amended on December 2011. The first thing that you need to decide the borrower, what kind of apartment he will buy into a mortgage - on the primary or secondary market. Both options have their advantages and disadvantages.
Primary housing market
There are also two options. You can buy an apartment in a new building that is being built. In such a house, the cost per square meter of housing is the lowest possible. This purchase is the most profitable, despite the fact that the bank in this case can increase the lending rate by 1-2%. Its disadvantage is the risk that the developer can freeze the object, as well as the fact that you, in fact, acquire a "cat in a poke". You can buy a furnished apartment with your own eyes only after the house is built. The second case is the purchase of an already finished apartment in a new building. Currently, thanks to the recently adopted law on shared construction, there is already no risk that such an apartment will have several owners. But the disadvantages of this option are the higher price of square meters and the lack of choice - by the time the house is rented out, there will not be enough apartments for sale. If you choose to purchase an apartment in a mortgage on the primary housing market, you should first choose and book it , and only then apply for a loan. And, only in those banks that cooperate with the developer.Secondary housing market
For the secondary market, the action algorithm is different -you first get a loan approval, and then look for suitable housing, which then must also be approved by the bank. The advantages of this option is that immediately after buying an apartment you can settle and live in it. In addition, this option provides more options for selection - you can choose the most suitable for yourself area of residence and housing in accordance with the amount of approved credit. The disadvantages include possible fraud with housing, because this apartment was already in the property and it can be encumbrances that a dishonest seller may not mention. Of course, the bank will subsequently check your choice once again, but you, after negotiating with the seller, should ask some questions. Specify, as far as the legal plan is "clean" the apartment, whether there is a debt on utility payments, whether it is under arrest and whether all previous tenants have been discharged from it. Let the seller present you a ready-to-sell package of documents.
