How to Buy an Apartment Complex
Before issuing the loan, the bank verifies not only the borrower, but the flat purchased by a mortgage. She is pledged to the bank to repay the mortgage, and in case of difficulty, the funds from the sale of apartments should completely cover the loan. So if you decide to buy an apartment in the mortgage, you have to choose the right, so you can save time and nerves. Let’s see what are the requirements of the bank to mortgage the apartment.
Having the Finances
The main requirement of the bank to the apartment is its liquidity. The liquidity of an apartment depends on many factors – characteristics of the building, description of the apartment, and legal aspects. If this is the apartment building, then the banks more willing to agree to have handed over the objects, or at least at the final stage, but on condition that the developer had worked.
So if you plan to buy an apartment in a new loan, then be prepared that the bank will carefully examine not only flat, but the developer – will be sought investment contract documentation for the lease of land, a document confirming a building permit and so on. As a rule, reliable builders seek to accredit their own facilities to assist the potential investor with no hassle to buy an apartment.
Also, the bank will require proof that the house is not located in the plans for demolition or reconstruction. The important role played by the location of the house, for example, a house on the outskirts of the city is less preferred than in the center. There will also be evaluated by the state apartments, the area, finish, layout.
Value of the Property
The Bank also draws attention to the cost of an apartment, it should not be overestimated, otherwise the bank deny you credit. It is also important to know if the seller has an apartment is not ready to show the documents of its market value, the bank may deny credit.
Bank are also important legal aspects of the transaction, the apartment must be legally free. Without any encumbrances, and is fully ready for registration and registration of the new owner. Also, the former owners should not be in arrears on tax and utility payments.
Bank wary of flats and redevelopment, which often is not legalized. And if the bank is lending to the apartment and redevelopment, it will oblige the customer to agree on redevelopment within six months, or result in the apartment to its former state.
The Commercial Loan
Derivation of the ideal real estate mortgage, an apartment from a reliable builder in the built and delivered to the house, it is desirable that the object was in the accreditation of the bank. And if this is a secondary market, it is flat, without alterations, so it was not the registered persons, or if there is, only one owner who has no children and heirs.
But in the real estate market of apartments for low and in some cases banks make concessions. Therefore, it will be easier to find a suitable apartment that will meet the requirements of the bank, through a real estate agency, and the ideal would be if the agency is working with the bank with whom you plan to get a loan.