How to buy an apartment in a mortgage? Apartment insurance for a mortgage

One precious square meter is given as a gift, others are huddled in parents' homes for many years, while others are choosing to purchase their own housing. However, even having collected all the savings, it is not always possible to purchase real estate. For this reason, more often people do not find another way out, except how to buy an apartment in a mortgage.

Pros and cons of housing on credit

Before you take a mortgage on an apartment, it is worthwhile to carefully consider and weigh the possible consequences of this step. First of all, it must be borne in mind that the burden of paying a mortgage over 10-30 years of life will additionally be accompanied by significant interest payments. Monthly considerable monetary costs will cause destabilization of the financial situation of most families. And not everyone is able to withstand such a test morally. In addition, before deciding on such an important step, you should think about the reliability of the current workplace and prospects for career growth.

Perhaps, it is necessary to postpone the purchase of an apartment for a while? To tighten with this, too, is not worth it, as housing prices are growing at an extremely fast pace. In the event that a potential borrower resides in a rented apartment, he should also consider raising the cost of renting. After all, investing in a mortgage, he pays for his property, not someone else's.

Features of housing loans

A person who decided to formalize a mortgage agreement, it is worth considering what kind of housing he wants and can afford to have. Banks offer several options for where to buy real estate and how. Buy an apartment in the mortgage today you can in the primary or secondary housing market. In addition, it will not be superfluous to get acquainted with special cases of its registration.

Housing credit, like any other, can be characterized, first of all, by the terms of its repayment and the interest rate. Its specific attribute is the availability of an initial contribution, the amount of which can vary depending on the mortgage conditions and the borrower's options.

To select the best conditions, you should review the proposals of all credit institutions. In the most interested it is necessary to apply personally. Providing the bank's employees with data on the estimated amount of the initial contribution and the value of the property, you can get a calculated payment schedule.

On existing housing markets

The primary option involves the acquisition of real estate in new buildings. The prices for such apartments are low, however in this case it is necessary to take into account available underwater stones:

• The long process of entering into ownership. For this reason, not every lender is ready to provide a loan for an apartment in a new building.
• The new housing is at the early stages of construction, is not ready for settlement or has not passed state registration, and therefore, legally it does not exist. All this can cause questions from the borrower, since the loan is provided on the security of the purchased real estate.

In the case of the acquisition of housing on the secondary market, all the shortcomings of the first option are excluded. Banks are more supportive in this situation, but there are also rules: the apartment being bought can not be in an old or an emergency house, it must have a failed connection. The fact of renting it should also be excluded. Purchased housing can not act as collateral for another loan.

Solving the housing issue of servicemen

With the aim of providing housing for the military and their families, a federal program, created by the decree of the President, operates today. It operates on the basis of a specially developed accumulative mortgage system, which provides for the opening and maintenance of individual savings accounts for persons serving in the army under contract.

The funds collected in this way can be used by the military only to purchase housing. The increase in the amount on the account is based on the amount of annual contributions and the term of participation of a particular person in the program. Three years after the entry into it, a soldier gets the right to use his savings to purchase an apartment on a military mortgage. In this case, we are talking about a special type of loan, called a targeted housing loan. There are no restrictions for servicemen in the choice of housing. Further savings under the program will go to pay off the mortgage debt.

The lending program for young families

Another category that has the right to benefits when buying an apartment is young families. Today, they also have a special state program. The persons who become its participants, in addition to the privileged crediting conditions, receive a subsidy from the state, which becomes part of the initial payment.

There are certain conditions for getting into the federal program, with the help of which a flat in a mortgage can be purchased on a preferential basis. A young family who wants to become a participant must meet the following requirements:

• To the age of both spouses did not exceed 35 years.
• Have a calculated calculated minimum monthly earnings.
• Get formal recognition of the need to improve living conditions.
• Have an accumulation to pay the down payment in the minimum amount - 10%.

In addition to the aforementioned federal program, young families can use the targeted mortgage offers of commercial banks. They provide some benefits for these categories of citizens. This option to purchase an apartment is also worth considering, since it is very difficult to get involved in the state program.

Mortgages secured by real estate

If the borrower already has any accommodation, he can use it as collateral to buy a new one. Credit organizations are usually very positive about such proposals, as they significantly reduce their risks. Refusal should be expected only in a situation when the apartment is registered by minors, since such an arrangement excludes the collection of the pledged property.

There are two possible options for how to buy an apartment in a mortgage with the help of existing housing and thereby simplify for yourself the conditions for obtaining borrowed funds or debt repayment:

• The person who decided to issue a loan does not have an officially certified income. In this situation, the bank can make concessions and provide money on the security of the existing property.
• A man with a mortgage wants to improve his living conditions. Here, banks usually offer customers to issue a loan secured by property, which will subsequently be sold. After the implementation of the old apartment, the amount of debt is reduced by its value.

Who and how can apply for a mortgage loan?

Under the law to become the owner of an apartment in a mortgage can become citizens of the Russian Federation of working age from 18 to 55 years. To do this, you need to apply to the selected bank with a pre-prepared package of documents that confirm the identity of the citizen, his education, the presence of a permanent job, disclose his income, give information on other available loans, as well as on the purchased property. On their basis, an application for a mortgage is drawn up.

The bank can refuse the citizen if he is not sure that he will be able to pay off his obligations. The main confirming factor here will be information about his income and work experience. In some cases, to help make a positive decision, it may be necessary to help the guarantors. After reviewing the application and the documents attached to it, the bank's experts give the final answer about the consent or refusal to grant a loan to this person.

Features of a mortgage agreement

In case of a positive outcome, a mortgage agreement is drawn up, according to which the bank provides the borrower with funds to purchase real estate on the security of such. This document should cover all the nuances of the transaction, including the rights and obligations of the parties. The main attributes of a mortgage contract for the purchase of an apartment are as follows:

• Assessed value.
• The amount of the down payment.
• Location.
• Dimensions.
• Grounds for Ownership.

A feature of the rights and obligations of the participants in the transaction is the absence of the bank's restrictions on the use of property. A citizen who has received a loan has the opportunity to live, repair, and inherit the property. He is not able to refuse to fulfill obligations under the contract, until he covers the full cost of the apartment and the bank's expenses.

Mortgage Insurance

No banking institution will provide funds to purchase an apartment without proper insurance documents. First of all, such actions are aimed at minimizing its own risks. To obtain housing loans may require insurance apartments for mortgages, ownership of it, life, health and ability to work of the borrower. The first is mandatory in accordance with the current legislation, but in the absence of others, the bank has the right to refuse to provide contingent cash.

It is not difficult to get all these services. To do this, you need to contact any insurance company involved in mortgage lending. Typically, the entire package of documents does not cost more than 2% of the cost of purchased housing. There are situations in which the borrower has the right also to interrupt the insurance contract and return an unclaimed part of payments on it, for example, early repayment of a loan debt or the sale of an apartment in a mortgage.

Possible insured events

Each type of insurance used in the registration of a loan for an apartment has a set of certain situations, the onset of which entails the implementation of payments under the contract:

• Real estate, which serves as a mortgage on mortgages, is completely or partially destroyed as a result of an accident, for example, a household explosion, fire or a gulf. In this case, the creditor has the right to demand payment of the debt ahead of schedule at the expense of the funds paid by the insurance company. The amount of payment under the insurance contract can also be used to restore the affected housing.
• Death of the person who issued the mortgage contract, as well as recognition of his incapacitated due to the assignment of the I or II group of disability. In the event of one of these cases, further repayment of the mortgage debt is carried out at the expense of the insurer's funds. The Borrower or his heirs become full owners of the housing.
• Recognition of the transaction of buying an apartment invalid because of the loss of ownership of it. Here, the insurance company must compensate the victims in the amount of the market value of the property.

The occurrence of insured events obliges the borrower to inform the bank and the insurance company about it.

Thus, before buying an apartment in a mortgage, it is necessary to examine the current state of the housing loan market: current requirements and conditions, available preferential programs, necessary documents. The application of this approach is very important, because it is able to help the borrower with the choice of the best option for housing loans and to avoid possible problems associated with its design.