How to get a loan secured at home? This procedure in different banks is approximately the same. It was relatively easy to unify the basic requirements of Russian banks, since there are not many people in the Russian Federation who want to take out a loan and own separate residential real estate.
But still take such loans. There is no doubt that bank customers who own not only real estate, but a separate, private house, have a great advantage over other borrowers.
Advantages of lending with the security of a private house
A loan secured by a private house really stands out against the background of all the rest with its elitism, and therefore, numerous bonuses.
It is worth listing the advantages enjoyed by such loans:
- many banks, acting as creditors, make non-binding such primary documents as income certificate 2-NDFL and employment record book;
- the client may have active loan loans both in the selected bank and in other banks, which is not a hindrance – loans secured by real estate are still issued;
- many financial institutions admit the presence of a problematic credit history, if the client offers private property as collateral;
- loan size exceeds the maximum level of consumer lending by several times and in most cases exceeds mortgage loans for apartments. On average, with such lending, we are talking about at least several million rubles, and with expensive collateral, it is permissible to take up to 10-15 million rubles;
- The mortgage burden on the house, which is already the property of the borrower, is somewhat different than the standard burden on the mortgage object. Thus, the borrower continues to retain his property rights to real estate even after it is pledged;
- the process of issuing a loan agreement is faster than issuing a standard mortgage on the security of the same mortgage object;
- Finally, the likelihood of a positive decision of the bank itself is much higher compared to other situations where the client cannot adequately prove to the creditor his financial viability.
Explain these benefits simply. The bank wants to receive guarantees of the return of borrowed funds. And taking into account interest. These warranties are:
- Stable, highly paid work of the client (profitable enterprise, if the client is an individual entrepreneur).
- Reliable guarantors who presented evidence of their high solvency.
- Property already owned by the borrower.
This last item is the most convenient for a credit institution. Since virtually any property over time only grows in price. No wonder there is a saying: “Real estate, like money, does not happen much.”
General restrictions for all
The lender boldly provides the owner of private real estate a loan secured by a house with a plot. After all, if the client fails to comply with his credit obligations, the bank will legally take the house into his own property. And the costs will be covered. However, even in this type of lending, the basic principles of mortgage lending as such are observed:
- the bank will never give more than 80% of the market value of the house, since in case of transfer of this property into bank possession, the creditor needs to sell it as soon as possible. This can only be done with a reduced price. Plus, the bank should be insured in case the prices for this category of real estate all the same fall;
- the plot on which the house stands should not be in the agricultural sector;
- the total area of the site and the house should be at least 200 square meters. meters, otherwise the property will be considered as a land plot, which will seriously reduce the cost of collateral and, therefore, the size of the loan.
Technical documentation for housing
Separately, it should be said that the bank will without fail require technical, legal and financial documentation regarding the subject of the pledge. Technical documentation is presented:
- cadastral and technical passport of the building;
- a detailed plan indicating the area of each room, including the bathroom, kitchen and utility rooms;
- certificate of ownership of the land on which the house stands, to the land of construction type (for construction).
Legal documentation on housing and the details of this area
Legal documentation is a bill of sale, proving the fact of sale. Or gift (or testament). These are documents that prove that the house was received as a gift or by inheritance. And each of these papers confirms the main thing – the right of full and sole ownership of this real estate.
When the borrower is the first owner of the house offered on pledge (bought from the developer, he built it himself) or received it as a gift / inherited from the first owners (from parents, for example), then the bank can have no doubts about the legal purity of the pledge.
But when a client turns out to be the owner of a house that has already seen several owners, then it is more difficult. Resale property in this price category requires a careful approach. The bank will scrupulously begin to verify the ownership and disposition of the house.
More precisely, it will force the borrower to do this. You may need to raise previous sales certificates and other such documents. To ensure that in the past all transactions and legal acts were strictly under the law.
We’ll have to check that somewhere on the second or third owner, third parties who have the right to share in this house have not been missed. Otherwise, the client and the bank will have problems when in the process of paying the loan by the client and the actions of the pledge rights of the bank suddenly there are people who have legal ownership of a part of the collateral.
Also to the legal documentation is an extract from the USRR (Unified State Register of Rights). The extract confirms that there are no encumbrances on the house. One type of burden has already been considered – the right to a share of third parties due to bad faith in past transactions. But the bailiffs by the court may arrest the house:
- for debts to other banks;
- debts on tax payments and utility services;
- evasion of mandatory payments associated with doing business;
- Finally, the house can simply be bought with a mortgage, and the client will hide from the lender the fact that the property is still in collateral with another bank.
In any case, the paper from USRR will show any kind of burden, if any. It can be guaranteed that this statement of the bank, where the client is applying for a loan, will be required in the same mandatory manner as the documents of ownership. Finally, the third type of documentation is financial.
Valuation of real estate
In fact, it is represented by one large document – an appraisal report of a company engaged in real estate appraisal. It is necessary to warn in advance about one moment. The bank, as a lender, is interested in reducing the size of a mortgage loan.
For this, he will certainly try to impose on the client the services of that appraisal firm that is accredited with this bank, is a business partner of a financial institution. Specialists from such a company will use any loopholes to understate all types of housing costs.
First of all, the market value. Therefore, clients interested in the maximum amount of a mortgage loan are advised to obtain funds from a third-party, independent appraiser.
Such a specialist will give not just an objective assessment, but you can informally agree with him about some slight over-pricing at home. This is one of the possible options for increasing the body of credit. In the same way as a bank, it sometimes happens that it agrees with a partner company about a small artificial price reduction.
The real estate valuation procedure usually takes one day. In some cases, when clarifications are required, 2-3 days. The specialist company must comply with the following points:
- inspect the land adjoining plot for obvious, open and severe deformations of the soil, failures, erosion;
- inspect the external structure of the house in order to identify technical and cosmetic defects;
- the main building material and the method of construction (brick house, wooden, sandwich panels, etc.) must be indicated;
- it is necessary to carefully examine each room of the house separately, again to check the architectural integrity. According to the Housing Code, the appraiser is obliged to take into account any, even minor damage to walls, ceilings and floor coverings. Also fixes the quality and design of the finish (linoleum or parquet flooring, stretch or ordinary ceilings, etc.);
- the state of windows, loggias, balconies, mansards and roofs is checked in a separate order;
- a list of all communications (electricity, cold and hot water supply, heating, telephone line, Internet, satellite antennas) and their characteristics (for example, what kind of heating is – HBO, from the central heating network, fireplace);
- the appraiser must accompany each mini-report with his own photographs;
- the specialist also checks the cadastral and technical passports of the house;
- The report is compiled in 2 copies: one to the bank, the other to the client.
Evaluation of living space in a loan secured by a house is a key factor both in determining the size of the loan and in the fact of a positive / negative banking verdict. If the bank evaluates the results of the evaluation report, it decides whether to provide the client with the requested amount.
Usually, from the initial application until the final decision takes 10-12 days. Of course, the bank will require a Russian passport and a Russian residence permit from a client. And, probably, it is necessary to be concerned about the 2-NDFL certificate and the employment record.
But with the described lending, the bank may turn a blind eye to this. Making loans secured at home is always easier. And where to get a loan of such a plan? Yes, any large bank is actively promoting credit lines with real estate collateral – Sberbank, VTB 24, Gazprombank, Raiffeisen Bank, etc.
If we are talking only about the share
Finally, you can and should be warned – all of the above applies to the sole, full owners, when the owner of the house alone. If the client does not own the whole house, but only a share in it, then everything is much worse. Then the owner of such collateral is virtually no different from the usual mortgage borrower, who relies only on his salary.
For even if other owners are not against a potential sale of the house, the bank will not risk anyway. Suddenly, someone will take, and even change his mind to sell his share. And the house can no longer be put up for auction.
And taking ownership of a share in case of bankruptcy of a borrower is meaningless for a bank, since it is almost impossible to sell a share in a house in the real estate market.
This article was written to clarify the characteristics of lending, in which the central place is occupied by a high-quality and reliable pledge – a private house.