Beside of the purchase of real estate (which have already been built or are under construction), housing loans can also be used fora construction of the facility, renovation and reconstruction of an apartment or a house. Under certain conditions, you can get a loan for the purchase of a property that is not registered in the real estate cadastre. These loans are granted for a longer repayment period (up...
Before you begin the search for your perfect house, you should consider how big of a house you can afford. If you plan these things ahead you will save time and avoid standing in lines waiting for loan application that might be turned down, because you didn’t have the right paperwork. You won’t feel disappointed when you see your dream house slipping through your fingers because you didn’t manage to...
Beside of the purchase of real estate (which have already been built or are under construction), housing loans can also be used fora construction of the facility, renovation and reconstruction of an apartment or a house. Under certain conditions, you can get a loan for the purchase of a property that is not registered in the real estate cadastre. These loans are granted for a longer repayment period (up to 30 years), with mandatory participation (at least five percent, although somewhere minimum down payment is up to 25 percent). The loan can be repaid by more persons together, in which all must comply with the requirements for obtaining loans and for all of them banks measure the level of indebtedness.
All the major banks have signed agreements on housing loan insurance with the National Mortgage Insurance Corporation (NMIC), which provides with favorable conditions lending. To help the construction industry, the state regularly (in principle, every year) brings a program of subsidized housing loans.
Instrument of security is always a mortgage, either on the property which is the subject of the loan or at another appropriate property values. The value of the property is evaluated by the authorized assessor elected by the bank, and for the establishment of a mortgage, there are also some costs. With a mortgage, the bank would usually require the bill of exchange and to insure real estate and yourself in its favor.
For each year, the state brings a special state program and the conditions of approval of subsidized housing loans. Part of subsidized housing loan you would get from the bank and a part from the country. A relation that is valid for the program of subsidized loans that can be approved is 75 percent of the bank, and 20 percent of countries (the remaining five percent is the participation). But, of course, it is variable due to each year, and probably in each state.
The point is that the part of the loan, which the state gives you, doesn’t pay interest, while the interest on the part of the bank’s loans is limited. The first part that is repayid is the Bank’s loan, then the part that the country approved.
The total amount of money that the government spends subsidizing home loans is limited, so it can happen that you do not get such a loan, no matter if you settle for all the conditions if the entire amount is already allocated.
Who can get subsidized loan?
The borrower and his spouse must not already be owners of a property in its entirety (ie, they can be co-owners). If you still own the property, they can get a loan, but only to the difference in the value of the property you have and a property you are buying. This is good for those who tend to move into larger living space, for instance, from an apartment in the city to a house in the suburb. In addition, none of the spouses may not receive a monthly salary of more than some defined amount.
What kind of property is approved for the subsidized loan?
These loans are approved solely for the purchase of new buildings and buildings under construction (provided that the building is purchased directly from investors). The loan can be obtained by the user who himself is building the facility if he is listed as an investor in the building permit.
Before you begin the search for your perfect house, you should consider how big of a house you can afford. If you plan these things ahead you will save time and avoid standing in lines waiting for loan application that might be turned down, because you didn’t have the right paperwork. You won’t feel disappointed when you see your dream house slipping through your fingers because you didn’t manage to secure the loan.
The first thing you need to ask yourself is how much you will be able to afford.
An old formula is used to calculate how much the borrower will be able to afford, it’s a three times annual gross income of the borrower but this formula has proven to be not so reliable. It is always safer to have more realistic look on the things, in addition, you will need to think about various taxes and fees. When you gather all this, your monthly expenses must be bigger than 44% of your income. When you enter on certain bank’s web page, you will have the possibility to calculate your mortgage payments and determine whether you can afford it
Check your credit history
Every lender would like to check your credit history before approving you a loan. While going through your credit history, he will get a clearer picture, whether you have the right qualification for the loan. He will see your credit score, also known as RICO. RICO file will contain your payment history, the number of your debts compared to your incomes. Many people have problems with their credit reports because identity theft is really common in the United States. The first thing you need to do, is to get a copy of your credit report and review it carefully.
Ask for prequalification letter
After your calculations have been done and after you know some basics about the financial state, you may ask a lender to issue you prequalification letter. In this way, you will be able to see how big your mortgage will be and how much you are required to pay every month. In order to be sure, you may want to ask to be preapproved, this will mean that your loan is guaranteed and that lender has performed all necessary check – ups and evaluated your financial state.
How will lender determine which mortgage size is right for you?
Basically, there are two main principles: housing cost will be compared to monthly income, then they will multiply it with .28 and that will be their guiding line. The second one is debt to income. The borrower should write down all cost that he will be having in the next 11 months. The borrower will multiply this with .35 and the result they get shouldn’t exceed the appointing number.
If the loan is bigger than the value of the property, he will not approve it. In some cases, they can make a deal and the borrower may agree to pay a difference between the price and the loan. If you have any difficulties in filling up your mortgage application, feel free to contact us.