A homeowner loan is a real estate loan. Real estate is secured by the bank until the loan is fully repaid. An individual is called a borrower, a bank is a lender, and real estate is a pawn.
After obtaining such a loan, a person continues to use real estate: he can live there quietly, register relatives in his apartment, and rent the living space with the prior bank consent. But without the permission of the bank, it can not be sold, donated, or to hold other transactions. This is possible only after the client repays the loan and the bank withdraws the deposit.
On the security of which real estate will a bank give a loan?
Each bank has its own conditions. For example, you can apply for a loan secured by an apartment or townhouse, which has the status of “apartment” with land.
Requirements for the pledged property:
- lack of emergency;
- physical wear and tear not over 70% at the time of assessment;
- lack of wooden boards (mixed boards are allowed);
- the material of the walls should not be made of wood (timber);
- the object should not be registered for capital repairs;
- at least three floors (except for townhouses);
- the object should not be on the list for renovation.
Other restrictions on issuing loans are:
- A loan will not be issued against the security of an object that is still under construction.
- There are other restrictions on granting a loan. Security loan will not be given to a person with severe health problems. Risks are assessed by an insurance company. If a person refuses to accept life insurance for a person with a severe illness, for example, with oncology, they will not give out a loan;
- debts for utilities, taxes. Before you take a loan, you need to pay these debts. If the amount is insignificant, the bank may accept the circumstance – provided that the borrower agrees to pay the debt;
- a person without a source of stable income. In this situation, it is impossible to predict whether a person will return the loan, so the bank will refuse.