How to Get a Mortgage: Instructions for Beginners

Not enough money to buy an apartment? Take out a mortgage. We offer you step- by- step instructions on how to proceed, where to go, what documents to collect. 

  • Select a bank;

First you need to choose the bank in which you can apply for a mortgage. Take a sheet of paper and line it up into seven columns: the name of the bank, the price of the abatement, the down payment, the rate, the term of the loan, currency, the necessary documents. Also note if you have special conditions in a bank- for example, if you have a salary account with it. Add to this list the banks, the terms of which seemed the most interesting to you, and then compare. 

The interest rate can now start at 4.7% on new buildings under special programs with state support. Also note that some banks have offers for online mortgages with a lower mortgage rate. Pay attention to additional fee, commissions and conditions. 

You can decide how much you want and can borrow, how much you can give as a down payment with the help of mortgage settlement services. The minimum down payment is 15-20% of the cost of housing, it depends on the chosen mortgage program. Determine the term for which you will take a loan based on your capabilities: if you are ready to pay a significant amount, take a loan for five years. Limited in funds – apply for 25 years with the possibility of early repayment. The longer the loan term, the more you will overpay in the end. As for currency, the golden rule applies: take out a loan in the same currency in which you receive your salary.

  • Check the conditions and additional payments;

Call, go or write to the bank and once again specify the terms of the loan. Find out from the loan officer the size of the bank commission, the need to take out insurance, possible fines, the conditions for early repayment of the loan. Calculate whether you have enough money to complete the transaction, register property rights and pay for the services of a realtor.

  • Collect documents;

Ask a loan officer or a mortgage document management officer what documents you need to collect. Usually this is a 2-NDFL certificate from your employer, a certified copy of the work book, a copy of the employment contract, education documents, marriage certificate or its dissolution, insurance certificate of state pension insurance, TIN certificate, copies of birth certificates of children, passport. Men of military age will also need a copy of their military ID.

  • Apply;

After you collect all the documents for the mortgage, call the bank and arrange when you can apply for a loan. You will come to the bank and a mortgage document management officer to check the certificates and copies that you have prepared. Ask him not only to put the papers in a pile, but also to check if they are correctly formatted. Also, on the basis of your documents, he can make an approximate calculation of how much loan and initial payment you can count on in this bank. Write an application for a mortgage loan and give it to the employee along with the documents. Be sure to find out when and how you will find out about the bank’s decision.

  • Wait for the decision;

You can keep an eye on the apartment even before you receive the bank’s decision. But you need to negotiate with the owners of the apartments, already knowing how much of the loan you can count on. However, please note that the loan agreement with the bank is valid for no more than three months. Gape – and you have to start all over again.

The bank also has certain requirements for real estate. Therefore, do not leave an advance or a deposit for housing until you receive the approval of the transaction from the bank.

If the loan officers are satisfied with everything, invite an appraiser, and then send the bank a report on the appraisal of the apartment and report the price that the seller is asking for.

Only after all this does the bank make the final decision on the provision of a mortgage loan, and also agree with you on the day when you conclude two contracts: purchase and sale with the landlord and credit with the bank.