Given the increase in rates, I want to speed up the process of buying a home. Fixing the rate now protects you from higher rates in the future, but getting a mortgage can take some time and effort.
What is a mortgage?
Mortgage is a way of borrowing money (a type of loan) to buy or refinance real estate.
These loans are repaid over relatively long periods, often 25 years or more, in order to spread the large costs of buying a home.
Mortgage loans are available from banks and other financial institutions known as "lenders". These lenders charge interest and sometimes other fees on top of the loan amount.
The lender will also secure or guarantee repayment of the loan, interest and fees by setting a fee or security on the title to the property.This will allow the lender to sell the property in case the mortgage cannot be repaid.
Requirements for the borrower
Mortgages in Russian banks in most cases can only be obtained by a citizen of the country. Of great importance is the registration or registration of the borrower in the region of the bank. Mortgages for foreign citizens are not available in every Russian bank due to the increased risks and peculiarities of the procedure, but some are ready to provide such an opportunity.
Stable income
The minimum amount of monthly wages must be 2 times more than the upcoming payments. Some loan programs have more favorable conditions that take into account the total income of the whole family.
How to get a mortgage?
Step-by-step instruction:
1. The first thing most people start with is a mortgage calculator. This will help you quickly get an idea of how much you can borrow, what mortgage rates the bank will offer you, and what different amounts and terms of borrowing can cost.
2. At this stage, you should also consider making a mortgage deposit. You will be required to make a deposit of at least 5% (mortgage of 95% LTV) of the purchase price in order to be potentially eligible for one of our mortgages. However, the higher your deposit, the less money you can borrow, so you may also want to consider a mortgage of 90% LTV or higher.
3. When you are looking for housing or want to remortgage, the next step is to reach an agreement in principle. This is a personalized indication of what the bank can provide you.It can be used with sellers and real estate agents to demonstrate that you may be in a good financial position to buy property.
4. Once you've received an agreement in principle, found a property, and the seller has accepted your offer, it's time to apply for a mortgage.
5. If your mortgage is approved, you will work with the broker, real estate agents and other relevant third parties regarding the “completion date” or “settlement date” when legal title to the property passes to you.
At this point, your intermediary will "down" the money you are borrowing to complete the transaction.
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